Analysts are always on the lookout for the best stocks to buy. And while there are many different ways to value a stock, one of the most popular methods is to look at the price-to-earnings (P/E) ratio.
The P/E ratio is simply the stock price divided by the company’s earnings per share. It’s a way to measure how much investors are willing to pay for each dollar of a company’s earnings.
Generally speaking, a lower P/E ratio is better because it indicates that the stock is cheaper relative to its earnings. And when analysts think a stock is undervalued, they often recommend it as a “buy”.
With that in mind, here are Analysts’ top 5 value stock picks for the near future
Analysts’ Top 5 Value Stock Picks for the Near Future
1. JPMorgan Chase (NYSE: JPM)
JPMorgan Chase (NYSE: JPM) is a leading global financial services firm with assets of $2.6 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of clients and consumers under its J.P. Morgan Chase, and WaMu brands.
The consensus expects JPMorgan Chase (JPM) to have a 19.6% upside from its current price. This is due to the company’s low P/E ratio of 10.6x, which is below the five-year average of 14.1x. Additionally, JPMorgan Chase is viewed as a safe investment due to its strong balance sheet and conservative management.
Also Read: Top 10 Value Stocks Give You High Return
2. Amazon (NASDAQ:AMZN)
Amazon (NASDAQ: AMZN) stock” is a publicly traded stock on the NASDAQ stock exchange. Amazon.com, Inc. is an American multinational technology company based in Seattle, Washington, that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is considered one of the Big Four tech companies, along with Google, Apple, and Facebook.
There is upside potential for Amazon.com stock, with analysts predicting a rise of 33.9%. The stock is currently trading at 1.93 times sales – which is a discount of around 47% from its five-year average.
3. PDD Holdings (NASDAQ: PDD)
PDD Holdings (NASDAQ: PDD) stock” is a cloud-based e-commerce platform that enables businesses to sell online in China. The company offers a suite of services, including cross-border logistics, payment, and marketing solutions. It enables businesses to sell to Chinese consumers through its WeChat and Tmall platforms. The company was founded in 2014 and is headquartered in Beijing, China.
China’s stock price forecast is for it to reach $110.36 by the end of the year. This would imply a nearly 53.2% upside from where it is currently trading. It is trading at 4.79 times sales, 58% lower than its average over the past five years.
4. Walt Disney (NYSE: DIS)
Walt Disney Company, together with its subsidiaries and affiliates, is a diversified entertainment and media company. The Company’s businesses include media networks, parks and resorts, studio entertainment, consumer products, and interactive media.
The Company’s media networks segment includes cable and broadcast television networks, television production, and distribution, domestic and international television stations, radio networks, and stations.
The Company’s parks and resorts segment includes theme parks, resorts, and a cruise line. The Company’s studio entertainment segment includes motion picture, television, home entertainment, and interactive entertainment production and distribution.
The Company’s consumer products segment includes licensing and merchandising of the Company’s branded products. The Company’s interactive media segment creates and delivers content and experiences across various interactive and connected devices.
The market is suggesting that there is a lot of upside potential for DIS shares. The average price target is $128.41, implying a 28.5% upside potential from current levels. DIS shares trade at 2.05x sales, which is below its five-year median but still reasonably priced. It looks like there is a lot of potentials for DIS to grow in the near future.
Also Read: Lucid Stock Forecast
5. Alphabet (NASDAQ:GOOGL)
Alphabet is an American multinational conglomerate created in 2015 that is focused on Internet products and services. The company is best known for its search engine, Google, and its various online products and services, such as Gmail and YouTube. Alphabet’s stock is traded on the NASDAQ stock exchange under the ticker symbol GOOGL. As of January 2018, Alphabet’s market capitalization was $717 billion.
The Google Inc. (GOOGL) stock price has surged in recent weeks as analysts weigh in with bullish outlooks, with some predicting a 19.6% upside from current levels. The stock trades at 23.3 times trailing earnings, below the five-year average, indicating that investors are viewing the company as undervalued.
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