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3 Stocks Every Value Investor Should Watch Out for Right Now

Value investing written on notebook laid on desk

Key Points

  • Three stocks have been screened for their potential upside in the coming months, making them a perfect place to be for value investors today.
  • With strong fundamentals and bullish stories behind them, these discounts should be erased shortly.
  • Wall Street analysts and institutions agree that these names will soon deliver upside returns.
  • Five stocks we like better than PayPal.

It doesn’t matter whether an investor manages a small personal portfolio or millions of dollars in a vehicle like an investment fund; when it comes to the discipline of value investing, one thing remains true. This characteristic is that these investors must be willing to place relatively contrarian bets, which is essentially where value is found.

Buying beaten-down stocks that have received negative media attention or been outright forgotten by the broader market doesn’t seem like the most productive use of an investor’s time or capital; however, these are the decisions that pay the most dividends down the line.

Today, three particular names could offer just that, a big dividend payment in the form of appreciation in the coming quarters.

Within the retail sector, investors can add shares of Target Corp. NYSE: TGT to their list of discounted names with asymmetrical upside potential. Diversifying from this tariff-affected space, other names like Southwest Airlines Co. NYSE: LUV and PayPal Holdings Inc. NASDAQ: PYPL can also fit this criteria for unfair discounts that turn these companies into value plays.

A 50% Discount From the Average for Southwest Airlines

Southwest Airlines Today

Southwest Airlines Co. stock logo
LUVLUV 90-day performance
Southwest Airlines
$29.74 -0.07 (-0.22%)
As of 10:50 AM Eastern
This is a fair market value price provided by Polygon.io. Learn more.
52-Week Range
$23.58
$37.96
Dividend Yield
2.42%
P/E Ratio
45.07
Price Target
$32.75

Not only does this stock trade at only 80% of its 52-week high, providing enough upside room for investors to take advantage of, but when valuation multiples are considered, the company appears to offer a potential 50% discount in one specific metric.

On a price-to-book (P/B) multiple basis, a 2.0x measure stands roughly 50% below the long-term average of 4.0x for this airline, meaning there must be something happening in the macro for markets to feel like this company’s book should be at this much of a discount.

Turns out, Southwest Airlines’ biggest moat and advantage comes from its fuel hedging abilities in the oil markets. With the price of oil seeing less than average volatility lately, it would make sense for the market to expect lower earnings and book value in the future.

However, Wall Street analysts would differ. Understanding that inflation is stickier than the Federal Reserve would like. Inventories are at cyclical lows, and Southwest Airlines could report up to $0.82 in earnings per share (EPS) for the fourth quarter of 2025, implying a jump of 90% from today’s reported $0.43.

Institutional Capital Likes Target Stock

Target Today

Target Corporation stock logo
TGTTGT 90-day performance
Target
$100.49 +0.72 (+0.72%)
As of 10:50 AM Eastern
This is a fair market value price provided by Polygon.io. Learn more.
52-Week Range
$87.35
$167.40
Dividend Yield
4.46%
P/E Ratio
11.04
Price Target
$115.65

One of the most popular supermarket chains is none other than Target. Whether it is due to convenience or its ability to stay up to consumer trends among younger customers, Target seems to have become the preferred shopping destination for groceries and home needs.

This is a moat in itself, and one that shouldn’t be forgotten just because the stock trades at a dismal 61% of its 52-week high, just the opposite, actually. Knowing that customer loyalty abounds for Target, and that management has been investing in improving the customer experience at its stores, some savvy institutions have decided to adopt this name.

Such as those from Nordea Investment Management, who, as of late July 2025, justified a boost of 37.4% to their Target stock holdings, bringing their net position to as much as $196.1 million today, giving retail investors a sound vote of confidence to consider moving forward.

As always, EPS growth also stands behind this seeming discount and upside potential, as Wall Street analysts now expect up to $2.47 in EPS by the fourth quarter of 2025, in other words a jump of 90% compared to today’s earnings, such financial growth is sure to have a positive influence on the stock’s price coming up.

Analysts Love the PayPal Story

PayPal Today

PayPal Holdings, Inc. stock logo
PYPLPYPL 90-day performance
PayPal
$67.53 +0.42 (+0.62%)
As of 10:50 AM Eastern
This is a fair market value price provided by Polygon.io. Learn more.
52-Week Range
$55.85
$93.66
P/E Ratio
14.43
Price Target
$84.57

As the rise of stablecoins could threaten the positioning of the financial behemoths, a company that is already positioned in the world of hybrid currency (a mix between fiat and crypto) is likely to do well in the future of payment processing and commercial banking solutions.

This is where PayPal comes into play, sporting a price that’s only 75% of its 52-week high and fundamentals that are as solid as they were when the stock was flirting with making a new high for the year. With this in mind, PayPal can be considered a sort of “low-hanging fruit” for investors and analysts alike.

PayPal can be seen as an easy win for analysts to boost, strengthening their reputations and careers, as these analysts are typically wary of boosting a stock that has been beaten down, such as PayPal has been. Canaccord Genuity Group analyst Joseph Vafi is one of the latest to reiterate a Buy rating for PayPal, along with a $96 per share valuation.

Compared to today’s low prices, this target would imply investors can shoot for a potential rally of as much as 37% from where PayPal stock has fallen to today, making it another great value play to consider in today’s market.

Should You Invest $1,000 in PayPal Right Now?

Before you consider PayPal, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and PayPal wasn't on the list.

While PayPal currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Gabriel Osorio-Mazilli
About The Author

Gabriel Osorio-Mazilli

Contributing Author

Equity Research, Dividend Investing, ETFs, Global Markets

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Companies Mentioned in This Article

CompanyMarketRankâ„¢Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Southwest Airlines (LUV)
4.0046 of 5 stars
$29.78-0.1%2.42%45.15Reduce$32.75
Target (TGT)
4.8544 of 5 stars
$100.841.1%4.44%11.09Hold$115.65
PayPal (PYPL)
4.9357 of 5 stars
$67.570.7%N/A14.44Moderate Buy$84.57
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