S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Critical asset just had biggest fall on record (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
In Senegal's capital, Nicaragua is a hot ticket among travel agents as migrants try to reach US
Critical asset just had biggest fall on record (Ad)
California authorizes expansion of Waymo's driverless car services to LA, SF peninsula
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Critical asset just had biggest fall on record (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
In Senegal's capital, Nicaragua is a hot ticket among travel agents as migrants try to reach US
Critical asset just had biggest fall on record (Ad)
California authorizes expansion of Waymo's driverless car services to LA, SF peninsula
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Critical asset just had biggest fall on record (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
In Senegal's capital, Nicaragua is a hot ticket among travel agents as migrants try to reach US
Critical asset just had biggest fall on record (Ad)
California authorizes expansion of Waymo's driverless car services to LA, SF peninsula
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Critical asset just had biggest fall on record (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
In Senegal's capital, Nicaragua is a hot ticket among travel agents as migrants try to reach US
Critical asset just had biggest fall on record (Ad)
California authorizes expansion of Waymo's driverless car services to LA, SF peninsula
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation

4 deep values for opportunistic investing

Key Points

  • Analysts' sentiment helped to lower these share prices, but the moves are overblown. 
  • These stocks have double-digit upsides at the analysts' lowest price target. 
  • Opportunistic investors are already scooping up shares; the deals may not last long. 
  • 5 stocks we like better than Tower Semiconductor

Image that says opportunity ahead on a road sign

Value is where you find it. Today, you can find it with Tower Semiconductor Ltd. NASDAQ: TSEMJohnson Controls International PLC NYSE: JCIBarnes Group Inc. NYSE: B and Howard Hughes Holdings Inc. NYSE: HHH

These companies trade at a significant discount to the analysts' target range and come with a healthy outlook for capital return. The last of these stocks faces a minimum double-digit upside relative to the analysts' lowest price target, with a 30% to 50% gain in store for most at the consensus. 

Tower Semiconductor wins with Intel

Tower Semiconductor scored a win when it could not close a deal to merge with Intel. The failure resulted in a large termination fee paid by Intel and, surprisingly, a new deal better for shareholders. Instead of getting wrapped up in Intel's giant footprint, Tower Semiconductor remains a standalone operator and will become one of Intel's foundry clients. It's a win for both as they can leverage the others' strengths and grow businesses. 

Tower analysts rate the stock a consensus "buy" with a consensus near $36.50 and a range of $35 to $38. The $35 low price target is about 25% above the current price action, which is being led higher by the chatter. The deal with Intel should accelerate revenue earnings growth as early as 2025 through advancing technologies. Tower Semiconductor is a specialist in analog semiconductors used in signal processing, important to applications such as the IoT, autonomous driving and AI. 

Tower reversal for Tower Semi

Johnson Controls International is a deeply undervalued issue

Johnson Controls International's stock price is suffering from slowing, as-expected growth, which is precisely the kind of growth that risk-averse investors should like to see, especially when that growth is trading 10% below the analyst's lowest stock price target and a value to peers at only 15x earnings. 


The deep value has the dividend yield up near 2.85%, another attraction, and there is some expectation for distribution growth. The company has only increased the payout over the last 12 years but not annually, and there is sufficient room in the cash flow to do so.

Johnson Controls could produce a better-than-expected report in early December. Results in Q2 were slightly below expectations, with mixed data trends, so analysts lowered estimates. The analysts still expect mid-to-high-single-digit revenue growth and solid margins, which should support the market at these prices. 

The stock has already corrected 30% from recent highs, pricing in the assumed weakness, and it sits on a critical support level where a rebound could quickly form. 

Johnson Controls undervalued chart

Insiders buy the dip in Barnes Group 

Barnes Group shares are down after a weaker-than-expected quarter with 15% top-line growth and unexpected margin pressure. The unexpected results shaved about 40% off the stock price, but the bottom appears to be in. 

The market is bouncing from a 10-year low, with analysts holding fast to targets well above that level. The analysts covering this stock trimmed their targets substantially but still see it trading higher than now. The minimum is about 10% upside with a chance of 26% at the consensus. 

Notably, Barnes Group insiders bought the stock shortly after it bottomed and helped to propel it higher. 

Five insiders made six transactions, and the CEO bought twice, raising its combined holdings to 5.2%. Institutions are also nibbling on this stock; they own about 86%. Barnes Group's dividend is reasonably safe, with a sustained regular payment history and a slow payout ratio. The stock yields about 2.45%, with shares near $26.50. 

Buying the dip on Barnes Group

Howard Hughes Holdings activist keeps buying shares

Howard Hughes activist investor Bill Ackman and Pershing Square Capital Management continue to buy shares. The firm's holdings topped 35% with recent purchases and have the company on track to retain control of the board if not gain controlling interest of HHH. Regardless, Howard Hughes Holding is on track with its plans to unlock shareholder value. 

The company completed its restructuring and plans to spin off non-core assets in early 2024, allowing it to focus on its high-end commercial and residential real estate portfolio, generating the bulk of profits. 

It's getting close where recurring income and profit from sales can self-fund new development. The analysts rate the stock a "buy" and view it as a deep value trading at a 20% discount to the low end of the range. 

Howard Hughes holdings

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Should you invest $1,000 in Tower Semiconductor right now?

Before you consider Tower Semiconductor, 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 Tower Semiconductor wasn't on the list.

While Tower Semiconductor 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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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Howard Hughes (HHH)
3.7558 of 5 stars
$76.60+0.3%N/A-6.88Buy$100.00
Barnes Group (B)
3.0216 of 5 stars
$34.83-0.3%1.84%112.36Moderate Buy$38.50
Johnson Controls International (JCI)
4.604 of 5 stars
$60.12+1.4%2.46%19.58Hold$62.58
Tower Semiconductor (TSEM)
2.8396 of 5 stars
$33.62+2.3%N/A7.23Moderate Buy$36.33
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

  • tmhughes.writeon@gmail.com

Contributing Author

Technical and Fundamental Analysis

Experience

Thomas Hughes has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies

Education

Associate of Arts in Culinary Technology

Past Experience

Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights. 


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