S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
Dell Technologies breaks out ahead of earnings release
Jeff Bezos Backs "Drug Smuggler" to Fight Alzheimer's (Ad)
Dropbox’s stock is a falling knife worth catching
Novavax’s dispute resolution and upcoming earnings call
Jeff Bezos Backs "Drug Smuggler" to Fight Alzheimer's (Ad)
Stock ideas from the 2024 Microcap Conference
Warner Bros. Discover: Debt down, profits up, yet questions remain
Laser breakthrough could send stock soaring 2,467% (Ad)
Gloom settles over Germany's economy, with businesses downbeat about the coming months
Sprouts, Block rise; Booking Holdings, Insulet fall, Friday, 2/23/2024
S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
Dell Technologies breaks out ahead of earnings release
Jeff Bezos Backs "Drug Smuggler" to Fight Alzheimer's (Ad)
Dropbox’s stock is a falling knife worth catching
Novavax’s dispute resolution and upcoming earnings call
Jeff Bezos Backs "Drug Smuggler" to Fight Alzheimer's (Ad)
Stock ideas from the 2024 Microcap Conference
Warner Bros. Discover: Debt down, profits up, yet questions remain
Laser breakthrough could send stock soaring 2,467% (Ad)
Gloom settles over Germany's economy, with businesses downbeat about the coming months
Sprouts, Block rise; Booking Holdings, Insulet fall, Friday, 2/23/2024
S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
Dell Technologies breaks out ahead of earnings release
Jeff Bezos Backs "Drug Smuggler" to Fight Alzheimer's (Ad)
Dropbox’s stock is a falling knife worth catching
Novavax’s dispute resolution and upcoming earnings call
Jeff Bezos Backs "Drug Smuggler" to Fight Alzheimer's (Ad)
Stock ideas from the 2024 Microcap Conference
Warner Bros. Discover: Debt down, profits up, yet questions remain
Laser breakthrough could send stock soaring 2,467% (Ad)
Gloom settles over Germany's economy, with businesses downbeat about the coming months
Sprouts, Block rise; Booking Holdings, Insulet fall, Friday, 2/23/2024
S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
Dell Technologies breaks out ahead of earnings release
Jeff Bezos Backs "Drug Smuggler" to Fight Alzheimer's (Ad)
Dropbox’s stock is a falling knife worth catching
Novavax’s dispute resolution and upcoming earnings call
Jeff Bezos Backs "Drug Smuggler" to Fight Alzheimer's (Ad)
Stock ideas from the 2024 Microcap Conference
Warner Bros. Discover: Debt down, profits up, yet questions remain
Laser breakthrough could send stock soaring 2,467% (Ad)
Gloom settles over Germany's economy, with businesses downbeat about the coming months
Sprouts, Block rise; Booking Holdings, Insulet fall, Friday, 2/23/2024

Capitalizing on value: 3 undervalued stocks ready for resurgence

Undervalued stocks

Key Points

  • Albemarle Match Group and PayPal offer undervalued opportunities relative to analysts' forecasts.
  • All three stocks are trading well below prior highs, but Wall Street sees earnings growth and price appreciation.
  • Undervalued stocks carry risk, while also having the potential for significant price increases.
  • 5 stocks we like better than Financial Select Sector SPDR Fund

When it comes down to it, all investing and trading is about nothing more than buying low and selling high. Ideally, you want to find stocks with as much upside as possible and just ride the wave. 

Albemarle Corp. NYSE: ALB, Match Group Inc. NASDAQ: MTCH and PayPal Holdings Inc. NASDAQ: PYPL are stocks from disparate industries, but all are undervalued relative to analysts’ forecasts of how high their prices may rise. 

In fact, these stocks are significantly undervalued if you compare their current prices to analysts’ estimates. 

However, it’s wise to use some caution with stocks that appear to be so inexpensive. 

There’s a reason these stocks fell so far, and that adds risk. Revenue and earnings declines, an out-of-favor industry, economic challenges and negative news are among the reasons a stock’s price can fall far below prior highs. 

Sluggish EV sales slowing Albemarle's roll

The world’s biggest lithium producer is currently trading at nearly half of analysts’ estimated value of $228.50. 

Albemarle’s chart shows the stock making two failed breakout attempts since its high one year ago; if you compare that timetable with the Albemarle earnings data, you’ll notice that earnings growth has been slowing since the quarter ended in December 2022. 

While electric vehicles are becoming more popular, they’re not rolling off dealer lots as fast as some policymakers had hoped. The company slashed its full-year guidance, citing soft EV sales.

"While the US and Europe make up only about one-third of total EV production in '23 and '24, near term we see potential challenges for EV growth in those regions related to economic softness and higher interest rates," CEO Kent Masters said in the most recent earnings conference call. 


A drop in lithium prices also hurt the company’s revenue, as it was able to fetch less for its products. 

Amid all that doom and gloom, don’t overlook the upside potential: EV adoption will continue to grow, even if more slowly than originally forecast. Albemarle has the option of slowing its investment in new production capacity while prices are down, which should help the bottom line while the company awaits the next EV growth cycle. 

Analysts love the potential for Match

The dating app went public in July 2020, auspicious timing for the “stay at home” era. 

The stock rallied to a high of $182 in October 2021 but is now trading 76.08%% below analysts’s consensus price forecast of $51.50. A glance at the Match chart shows you the two-year decline. 

Match is still the leading company in the online dating space, and even in the post-pandemic era, plenty of people are still going online to meet that special someone. In addition to its flagship app, the company also owns Tinder, Hinge, Meetic, OkCupid, Pairs, Plenty Of Fish, Azar and Hakuna, among others. When the company most recently reported results, it said apps, including Hinge and Tinder were seeing faster rates of adoption. 

That expansive reach is causing analysts to see a continued upside in the stock. 

MarketBeat’s Match Group earnings data show revenue growth returning in the past two quarters after declining in late 2022 and early 2023. The company has also implemented cost controls to drive efficiencies; analysts expect earnings to grow by 121% this year to $2.76 a share. 

Forecasting PayPal to bring in more money

S&P 500 component PayPal is trading 46.34% below analysts’ price target of $79.43. 

The stock, which is among finance stocks tracked by the Financial Select Sector SPDR Fund NYSEARCA: XLF, is down 23.10% year-to-date but has recently been holding above levels near $28 and may have found a floor.

In the most recent quarter, net income and revenue topped estimates, as the PayPal earnings data show. Earnings grew at double-digit rates in the past four quarters, with revenue growth in the mid-to-high single digits. 

The company has a new CEO, Alex Chriss, who took the helm in August. A new CEO is frequently the catalyst for price growth, as that person often brings a fresh perspective, strategic ideas and innovative leadership that can drive organizational growth.

In the third-quarter news release, Chriss mentioned driving further efficiencies that will enable the company to “execute with higher velocity.”

Analysts expect PayPal to earn $4.98 per share this year, an increase of  21%. 

The company’s Venmo digital wallet service has been growing at a fast pace, and analysts expect that trend to continue. 

→ SHOCKING Crypto Leak Reveal Crypto's Set To SURGE (From Crypto 101 Media) (Ad)

Should you invest $1,000 in Financial Select Sector SPDR Fund right now?

Before you consider Financial Select Sector SPDR Fund, 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 Financial Select Sector SPDR Fund wasn't on the list.

While Financial Select Sector SPDR Fund currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

7 Energy Stocks to Buy and Hold Forever Cover

Do you expect the global demand for energy to shrink?! If not, it's time to take a look at how energy stocks can play a part in your portfolio.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Financial Select Sector SPDR Fund (XLF)N/A$40.30+0.5%1.74%12.16N/AN/A
Match Group (MTCH)
4.9952 of 5 stars
$36.86+2.0%N/A16.17Moderate Buy$47.37
PayPal (PYPL)
4.7905 of 5 stars
$59.16+1.4%N/A15.41Hold$70.63
Albemarle (ALB)
4.9159 of 5 stars
$120.65+2.1%1.33%9.04Hold$193.00
Compare These Stocks  Add These Stocks to My Watchlist 

Kate Stalter

About Kate Stalter

  • stalterkate@gmail.com

Contributing Author

Retirement, Asset Allocation, and Tax Strategies

Experience

Kate Stalter has been a contributing writer for MarketBeat since 2021.

Additional Experience

Series 65-licensed investment advisor, financial advisor, Blue Marlin Advisors; investment columnist for Forbes, U.S. News & World Report

Areas of Expertise

Asset allocation, technical and fundamental analysis, retirement strategies, income generation, risk management, sector and industry analysis

Education

Bachelor of Arts, Saint Mary’s College, Notre Dame, Indiana; Master of Business Adminstration, Kellogg School of Management at Northwestern University

Past Experience

Founder, financial advisor for Better Money Decisions; editor, stock trading instructor for Investor’s Business Daily; columnist, podcast host, video host for MoneyShow.com; contributor for Morningstar magazine


Featured Articles and Offers

PayPal a Fundamental Buying Opportunity in 2024?

PayPal a Fundamental Buying Opportunity in 2024?

Investors who held PYPL stock in July 2021 have seen it drop approximately 80%. With the stock now below its 2019 prices, is it time to get in on the stock?

Search Headlines: