S&P 500   4,388.86 (-0.48%)
DOW   34,397.63 (+0.10%)
QQQ   348.32 (-1.41%)
AAPL   160.86 (-0.47%)
MSFT   293.11 (-1.10%)
FB   304.58 (-1.34%)
GOOGL   2,570.32 (-1.75%)
AMZN   2,824.99 (-2.28%)
TSLA   931.30 (+0.14%)
NVDA   226.66 (-3.02%)
BABA   119.35 (-0.85%)
NIO   24.05 (-3.30%)
AMD   112.75 (-3.24%)
CGC   7.37 (-0.41%)
MU   81.76 (-1.43%)
GE   90.99 (-6.11%)
T   26.41 (+0.27%)
F   20.08 (-1.52%)
DIS   136.45 (-0.73%)
AMC   16.27 (-2.22%)
PFE   52.75 (+2.35%)
ACB   4.20 (-2.78%)
BA   203.67 (-0.26%)
S&P 500   4,388.86 (-0.48%)
DOW   34,397.63 (+0.10%)
QQQ   348.32 (-1.41%)
AAPL   160.86 (-0.47%)
MSFT   293.11 (-1.10%)
FB   304.58 (-1.34%)
GOOGL   2,570.32 (-1.75%)
AMZN   2,824.99 (-2.28%)
TSLA   931.30 (+0.14%)
NVDA   226.66 (-3.02%)
BABA   119.35 (-0.85%)
NIO   24.05 (-3.30%)
AMD   112.75 (-3.24%)
CGC   7.37 (-0.41%)
MU   81.76 (-1.43%)
GE   90.99 (-6.11%)
T   26.41 (+0.27%)
F   20.08 (-1.52%)
DIS   136.45 (-0.73%)
AMC   16.27 (-2.22%)
PFE   52.75 (+2.35%)
ACB   4.20 (-2.78%)
BA   203.67 (-0.26%)
S&P 500   4,388.86 (-0.48%)
DOW   34,397.63 (+0.10%)
QQQ   348.32 (-1.41%)
AAPL   160.86 (-0.47%)
MSFT   293.11 (-1.10%)
FB   304.58 (-1.34%)
GOOGL   2,570.32 (-1.75%)
AMZN   2,824.99 (-2.28%)
TSLA   931.30 (+0.14%)
NVDA   226.66 (-3.02%)
BABA   119.35 (-0.85%)
NIO   24.05 (-3.30%)
AMD   112.75 (-3.24%)
CGC   7.37 (-0.41%)
MU   81.76 (-1.43%)
GE   90.99 (-6.11%)
T   26.41 (+0.27%)
F   20.08 (-1.52%)
DIS   136.45 (-0.73%)
AMC   16.27 (-2.22%)
PFE   52.75 (+2.35%)
ACB   4.20 (-2.78%)
BA   203.67 (-0.26%)
S&P 500   4,388.86 (-0.48%)
DOW   34,397.63 (+0.10%)
QQQ   348.32 (-1.41%)
AAPL   160.86 (-0.47%)
MSFT   293.11 (-1.10%)
FB   304.58 (-1.34%)
GOOGL   2,570.32 (-1.75%)
AMZN   2,824.99 (-2.28%)
TSLA   931.30 (+0.14%)
NVDA   226.66 (-3.02%)
BABA   119.35 (-0.85%)
NIO   24.05 (-3.30%)
AMD   112.75 (-3.24%)
CGC   7.37 (-0.41%)
MU   81.76 (-1.43%)
GE   90.99 (-6.11%)
T   26.41 (+0.27%)
F   20.08 (-1.52%)
DIS   136.45 (-0.73%)
AMC   16.27 (-2.22%)
PFE   52.75 (+2.35%)
ACB   4.20 (-2.78%)
BA   203.67 (-0.26%)

7 Undervalued Stocks That Deserve More Attention

Posted on Thursday, February 25th, 2021 by MarkertBeat. Staff
7 Undervalued Stocks That Deserve More AttentionWith the Dow Jones Industrial Average (DJIA) hitting new highs seemingly every day, it may seem like the wrong time to be looking at undervalued stocks. Or is it?

From cannabis to cryptocurrencies, and let’s not forget electric vehicles the market seems to be blowing bubbles wherever you look. And that’s why now may be exactly the right time to zig while the market is sagging. And that means looking for undervalued stocks.

But finding undervalued stocks is subjective. Some analysts use specific fundamental metrics. Others use technical analysis.

However, the general idea is that you’re looking for stocks that are trading below their fair value.

In some cases, these may be stocks whose financials are stronger than other stocks in their sector, but it’s trading at a lower price. In other cases, a company may have potential that is not reflected in its stock price. Put another way, undervalued stocks are stocks that have room to grow. That’s why they deserve a place in your portfolio.

And that’s why we’ve put together this special presentation on stocks that are undervalued right at this time. An investment in these companies is likely to be rewarded because the stocks are moving under the radar from the broader market.

#1 - Ford (NYSE:F)

Ford Motor logo

The electric vehicle (EV) sector is full of companies that recently went public or are in the process of doing so. That makes Ford (NYSE:F) a compelling choice as our first of the undervalued stocks you should consider. In fact, Ford is considered to be one of the most undervalued stocks to this point.

With a stock price of over $12, a price the company hasn’t seen since 2018, you might say the stock is not undervalued. However, Ford has a market cap of around $45 billion with free cash flow of around $3 billion. The company finally looks like it has its balance sheet in order and just in time to deliver on its promise to go all in on electrification.

A key part of that strategy will be its partnership with the electric truck manufacturer, Rivian. Ford bought a minority stake in the company in 2019. Rivian is expected to deliver its first truck this year which should add to Ford’s value.

Ford’s own Mustang Mach-E is on track to launch this summer. The Mustang will be the first of over a dozen EVs the company is planning to launch in the next two years.

About Ford Motor

Ford Motor Co engages in the manufacture, distribution, and sale of automobiles. It operates through the following three segments: Automotive, Mobility, and Ford Credit. The Automotive segment engages in developing, manufacturing, marketing and servicing of Ford cars, Lincoln vehicles. The Mobility segment includes Ford Smart Mobility LLC and autonomous vehicles business.Read More 
Current Price
$20.08
Consensus Rating
Hold
Ratings Breakdown
9 Buy Ratings, 8 Hold Ratings, 4 Sell Ratings.
Consensus Price Target
$19.52 (2.8% Downside)




#2 - General Motors (NYSE:GM)

General Motors logo

Sticking in the automotive sector, investors looking for undervalued stocks should consider General Motors (NYSE:GM). Although many investors don’t consider Tesla (NASDAQ:TSLA) to be a fair comparison, it’s worth noting that GM has a market cap of around 76 billion as of this writing. But the company delivered five million vehicles globally in 2020. Tesla deliver just under 500,000 vehicles and has a market cap of nearly 10 times that of GM.

Recently GM has made headlines by launching its Ultium Platform. According to GM, the platform will fit every type of vehicle and provide performance benefits in terms of range, power and the ability to charge quickly. The platform is also a cornerstone for GM’s plan to electrifying its entire fleet by 2035. As a first step, the company plans to have 30 new EVs available by 2025. The company is also partnering with EVgo a company to add 2,700 new fast charging stations throughout the United States.

About General Motors

General Motors Co engages in the designing, manufacturing, and selling of cars, trucks and automobile parts. It also provides automotive financing services through General Motors Financial Company, Inc The firm operates through the following segments: GM North America, GM International, Cruise and GM Financial.Read More 
Current Price
$52.28
Consensus Rating
Buy
Ratings Breakdown
15 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$73.41 (40.4% Upside)




#3 - VMware (NYSE:VMW)

VMware logo

VMware (NYSE:VMW) can’t seem to generate the conviction from investors that it deserves. Although the company is often compared to Salesforce.com (NYSE:CRM), Salesforce seems to get more love. For example, from the start of the pandemic in March of 2020, CRM stock has climbed nearly 100%. VMW stock by contrast has climbed about half of that (57%).

The companies have similar business models, but there is a key difference. Salesforce connects businesses with customers and clients through the cloud. And investors love the recurring revenue of its SaaS service. VMware also has an SaaS component, but the company’s business is also fundamental to the entire cloud environment. In fact, VMware is in the business of helping companies make the best use of the cloud on whatever device they’re using. And the company is also a back door play on the 5G revolution.

VMW stock should have gotten more of a lift from the shift to remote work, but it still remains undervalued at this point. Investors will be paying close attention to the company’s earnings report on February 25. A solid showing could finally be the catalyst that VMware needs.

About VMware

VMware, Inc engages in the provision of cloud infrastructure and business mobility. Its products include Software-Defined Data Center, Hybrid Cloud Computing, and End-User Computing. It supports modernizing data centers, integrating public clouds, empowering digital workspaces and transforming security.Read More 
Current Price
$124.24
Consensus Rating
Buy
Ratings Breakdown
10 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$153.72 (23.7% Upside)




#4 - BioMarin Pharmaceuticals (NASDAQ:BMRN)

BioMarin Pharmaceutical logo

BioMarin Pharmaceuticals (NASDAQ:BMRN) is an undervalued name in the biopharmaceutical sector. BioMarin Pharmaceuticals occupies the gene therapy niche which gives the company higher margins and a wider moat. The company also has several patents to help protect its pipeline drugs.

The stock is down about 3% so far in 2021 and is struggling to find direction. The culprit seems to be Roctavian, the company’s gene therapy candidate for the treatment of hemophilia A. The launch of the drug was on track for this year, but the FDA requested more information in August and that means 2022 is more a likely launch date.

For many small-cap biotech stocks, news like that would be devastating, but in the case of BioMarin the sell-off looks like an opportunity. The company has a deep pipeline including a drug for treating achondroplasia, a condition that has no approved treatments. The company has filed a New Drug Application for the drug and the FDA has an August 2021 deadline.

About BioMarin Pharmaceutical

BioMarin Pharmaceutical, Inc engages in the development and commercialization of therapies for people with serious and life-threatening rare diseases and medical conditions. Its pipeline products include Valoctocogene roxaparvovec, Vosoritide, and BMN 307. The company was founded by John C. Klock, Christopher M.Read More 
Current Price
$85.49
Consensus Rating
Buy
Ratings Breakdown
11 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$112.57 (31.7% Upside)




#5 - CVS (NYSE:CVS)

CVS Health logo

Another undervalued stock to consider in the healthcare sector is CVS (NYSE:CVS). CVS stock has been falling since it released earnings in mid-February, but it’s hard to see why. It appears that the stock has been a victim of not meeting elevated expectations. The stock is trading about 10% below its 52-week high set in January, so it’s possible that this is just some profit taking.

Whatever the reason, CVS presents an attractive opportunity for a couple of reasons. First, the pharmacy chain will be front and center as part of the Covid-19 vaccine rollout. Although being a Covid-19 testing site didn’t produce significant revenue in 2020, the company is optimistic that getting customers into the store to “get the jab” will increase front of store sales.

That will give the company a chance to test the viability of its HealthHUB concept. This store-in-store concept will be manned by medical professionals and will allow CVS to offer expanded health care services and offerings. The company slowed the company’s rollout, but they are forecasting 1,500 locations will have HealthHUB’s by the end of the year.

About CVS Health

CVS Health Corp. engages in the provision of health care services. It operates through the following segments: Pharmacy Services, Retail or Long Term Care, Health Care Benefits, and Corporate/Other. The Pharmacy Services segment offers pharmacy benefit management solutions. The Retail or Long Term Care segment includes selling of prescription drugs and assortment of general merchandise.Read More 
Current Price
$103.24
Consensus Rating
Buy
Ratings Breakdown
17 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$112.37 (8.8% Upside)




#6 - Coca-Cola (NYSE:KO)

Coca-Cola logo

Turning your attention to the consumer defensive sector, let’s take a look at Coca-Cola (NYSE:KO). The company is making headlines for the wrong reasons. But that controversy is likely to pass quickly. And if Coca-Cola is lucky, so will the pandemic. The company has a global distribution network and strong brand recognition that just needs the floodgates to open.

That’s because a reopening of restaurants, bars, and live events will be the shot in the arm the company needs. But it doesn’t need as much of a shot in the arm as you might expect. The company reported full-year 2020 earnings in early February. Coke reported full-year revenue of $33.05 billion which was “only” 9% down year-over-year.

Coca-Cola is frequently compared to Pepsico (NASDAQ:PEP), and to be fair Pepsi has also done well during the pandemic. However, looking at recent price movement in the two stocks, Coke looks like the better investment at this time.  And although both companies are dividend darlings, Coke also has the edge for consecutive years with a dividend increase by a 57 to 49 margin.

About Coca-Cola

The Coca-Cola Co is the nonalcoholic beverage company, which engages in the manufacture, market, and sale of non-alcoholic beverages which include sparkling soft drinks, water, enhanced water and sports drinks, juice, dairy and plant-based beverages, tea and coffee and energy drinks. Its brands include Coca-Cola, Diet Coke, Coca-Cola Zero, Fanta, Sprite, Minute Maid, Georgia, Powerade, Del Valle, Schweppes, Aquarius, Minute Maid Pulpy, Dasani, Simply, Glaceau Vitaminwater, Bonaqua, Gold Peak, Fuze Tea, Glaceau Smartwater, and Ice Dew.Read More 
Current Price
$59.71
Consensus Rating
Buy
Ratings Breakdown
10 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
$62.33 (4.4% Upside)




#7 - Kellogg (NYSE:K)

Kellogg logo

The last stock on the list is Kellogg (NYSE: K). The food manufacturing company is known for its breakfast cereals and other convenient, packaged items such as Eggo frozen waffles makes this list for one reason, its dividend.

Last year, the company broke a 15-year streak of increasing dividends and that made the stock less attractive for value investors. Kellogg is a notoriously low-growth stock in a sector that has tight margins. That makes the dividend of premium importance.

So when the company reported earnings in early February, it was significant news that the company is planning to increase the dividend at some point in 2021. Although the company is likely to see revenue revert back to pre-pandemic levels, an increased dividend should help this stock move higher. It’s currently down about 4.5% for the year. For value investors willing to hang on, they are likely to get a little capital growth as well.

About Kellogg

Kellogg Co engages in the manufacturing, marketing, and distribution of ready-to-eat cereal and convenience foods. The firm markets cookies, crackers, crisps, and other convenience foods, under brands such as Kellogg's, Cheez-It, Pringles, and Austin to supermarkets in the U.S. It operates through the following geographical segments: North America, Europe, Latin America, and AMEA(Asia Middle East Africa).Read More 
Current Price
$66.33
Consensus Rating
Hold
Ratings Breakdown
4 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$69.00 (4.0% Upside)



 

The strategy of looking for undervalued stocks is sometimes called value investing. Growth investing has easily beaten value investing over the past decade. However, with the market beginning to look very frothy, value investing may be making a comeback in 2021.

Like all investing strategies, value investing can be subjective. Two investors may look at the same stock and come to two different conclusions.

However, one of the key benefits of value investing is that it is one of the best strategies for managing risk while getting an attractive return. This is because many, though not all, value stocks pay dividends. This can help boost a stock’s total return, particularly since many of these stocks are not known to deliver rapid growth.

And many investors enjoy the ability to invest in specific equities rather than being locked into an exchange-traded fund (ETF) or mutual fund. While those assets are perfectly fine investments, there is less flexibility for investors who enjoy picking their own stocks.

20 "Past Their Prime" Stocks to Dump From Your Portfolio

Did you know the S&P 500 as we know it today does not look anything close to what it looked like 30 years ago? In 1987, IBM, Exxon, GE, Shell, AT&T, Merck, Du Pont, Philip Morris, Ford, and GM had the largest market caps on the S&P 500. ExxonMobil is the only company on that list to remain in the top 10 in 2021. Even 15 years ago, companies like Radio Shack, AOL, Yahoo, and Blockbuster were an important part of the S&P 500. Now, these companies no longer exist as public companies.

As the years go by, some companies lose their luster, and others rise to the top of the markets. We've already seen this in the last few decades, with tech companies surpassing industrial and energy companies that once dominated the S&P 500. It's hard to know what the next mega-trend will be that will knock Apple, Google, and Amazon off the top rankings of the S&P 500, but we know that companies won't stay on the S&P 500 forever.

We've identified 20 companies that are past their prime. They aren't at risk of a near-term delisting from the S&P 500, but they show negative earnings growth for the next several years. If you own any of these stocks, consider selling them now before they become the next Yahoo, Radio Shack, Blockbuster, AOL and are sold off for a fraction of their former value.

View the "20 "Past Their Prime" Stocks to Dump From Your Portfolio" Here.





Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.