A new year is coming. It’s a time for things to change, people to change, and maybe even the world. It would be nice, wouldn’t it? As individuals, I don’t think anyone would argue against doubling down on the net positives in our lives, whatever they may be. Breaking a bad habit or two doesn’t hurt, either. Like all holidays, it’s just another day on the calendar; what makes holidays unique is the opportunity to celebrate one another and be grateful for what we have. Regardless, another week of stock trading will begin on the first Monday of 2023, and we should prioritize staying in proper tune with our portfolios.
If you’re bullish, this could be a neat investor’s resolution: Putting the foot down for dramatic effect, “Be extra vigilant in prosperous exchanges and maintenance of equities from which I can make a profit.” We’ve all learned that it’s helpful for investors to be cautious during uncertain periods and troubling market trends — and I would say Q4 2022 qualifies — but it can still be advantageous to keep an eye on stocks that Wall Street’s analysts consider undervalued. For a stock to be “undervalued,” there should be some persuasive pricing and performance history behind it to provide a true sense of its intrinsic (or fair) value. While stock ownership always has an inherent risk, some investments tend to be wiser than others.
Let’s break down three stocks that boast bargains. I picked them based on solid financial track records, innovative business practices, reputations, and analyst sentiments. Said analysts agree that for long-term investors who like a good bargain and upside potential, buy now and hold onto these undervalued tickers:
Hewlett Packard Enterprise Co (HPE)
In the Americas, Europe, the Middle East, Africa, Asia Pacific, and Japan, Hewlett Packard Enterprise Co. (HPE) delivers solutions that enable businesses to acquire, analyze, and act on data in real-time. HPE provides general-purpose servers for multi-workload computing and workload-optimized servers, secondary workload solutions, traditional tape, networking, and disk products. HPE’s portfolio includes hardware products such as Wi-Fi access points and switches and services such as cloud-based management and professional support. HPE also provides leasing, financing, and utility programs to consumers to simplify tech solutions. In addition, HPE offers consultative-led services. HPE was formed in 1939 and is headquartered in Spring, TX.
For the current quarter, HPE shows forecasted sales of $7.5 billion at 54 cents per share. HPE comes with a twelve-month-running P/E ratio of 7.62x, a decent P/S (Price to Sales) measure of 0.67, and a P/B (Price to Book) even at 1.00 — these ratios, based on consensus standards, make HPE a profitable stock. In the most recent quarter, HPE handily met/slightly exceeded EPS projections with 57 cents per share (+0.77%), and revenue of $7.87 billion beat estimates of $7.40 billion (+6.37%). HPE has a dividend yield of 3.10%, with a quarterly payout of 12 cents ($0.48/yr) per share. Analysts have given HPE a consensus median price target of 18.00, with a high of 20.00 and a low of 13.00. This forecast provides HPE with a potential upside of 29.2%. The recommendation is to Buy Now and Hold.
Griffon Corp (GFF)
Griffon Corporation (GFF) is a multi-faceted management and holding corporation that operates via various subsidiaries. GFF sells consumer and professional items and home and building materials in the U.S., Australia, Canada, and throughout Europe and various other international locations. GFF gives direction and help to its subsidiaries regarding acquisition and expansion prospects. True Temper, ClosetMaid, and AMES are among the many brands GFF’s Consumer and Professional Products division sells internationally. GFF was established on May 18th, 1959, and is headquartered in New York, NY.
GFF shows forecasted revenue of $697.1 million, at 81 cents per share for the current quarter. What you could call a value stock as well, GFF has two reassuring price ratios: a P/E of 13.39x and a P/S measure of 0.63. GFF has a twelve-month-running market cap of just over $2 billion and revenue of $2.85 billion (+24.30 YoY growth); it net profited $950 million. GFF shows impressive analyst beats for its last two reports. It last beat EPS and Revenue by 330.82% and 16.55%, respectively; 225.00% and 3.82% the quarter prior. GFF has a dividend yield of 1.16%, with a quarterly payout of 10 cents ($0.40) per share. Analysts have given GFF a consensus average price target of 46.00, with a high of 54.00 and a low of 42.00. This estimate suggests an upside of 57% for GFF’s stock value. Buy Now and Hold.
Bank of America Corp (BAC)
The Bank of America Corp (BAC) offers a wide range of banking and financial services to individuals, small and medium-sized enterprises, institutional investors, big businesses, and governments worldwide. BAC offers a variety of lending products and services, such as commercial loans, leases, commitment facilities, commercial real estate loans, and asset-based lending. BAC also provides treasury solutions, including treasury management, foreign exchange, short-term investing options, and merchant services, both debt and equity underwriting and distribution, as well as merger-related and other advisory services. BAC’s Global Markets division provides market-making, financing, securities clearing, and settlements. BAC is headquartered in Charlotte, NC, and was established in 1784.
I’m revisiting BAC after a while, and there have been some changes. For one, BAC’s stock is down by 27.93% year-to-date. A quick aside: It seems that, genuinely, nobody wants banks to do poorly; we actually tend to root for them when we think about what’s at stake, don’t we? BAC shows a trustworthy P/B (Price to Book) figure of 1.01 and a P/E (Price-to-Earnings ratio of 10.15x. With an impressive market cap of $257.19, it carries revenue of $91.5 billion over the previous twelve months, with a 33.75% operating margin and $7.33 billion in free cash flow (no big deal). Regarding BAC’s earnings reports, it reported Q3 2022 revenue of $24.50 billion, a little over $1 billion more than analysts projected, surprising by 4.46%. BAC won on its EPS by a similar margin of 4.48%. BAC has a dividend yield of 2.74%, with a quarterly payout of 22 cents ($0.88/yr) per share. Analysts give BAC a consensus median price target of 42.00, with a high of 52.00 and a low of 32.00. The potential upside here is 62.2% for stock representing the financial giant BAC has proven itself to be. Analysts concede we Buy Now and Hold.
Read Next – America Has Reached A Historical “Turning Point”
In recent weeks, there’s been a growing number of warning signs:
- The average savings rate for consumers had dropped to just 2.3% in October — its lowest level since 2005…
- The largest private equity firm in the world is curbing redemptions from their real estate investment trust (REIT)…
- Our nation’s debt is over $30 trillion – with forecasts reaching $45 trillion by 2032…
- We’re facing another 2008-style housing crash…
- And the Fed’s at risk for tipping us into a recession.
It’s clearly evident:
America Has Reached A Historical “Inflection Point” in Our Economy
And if you’re over the age of 50 and your retirement plans depend on your portfolio recovering in the next few years…
I have something you need to hear.
According to 20-year market veteran Dan Ferris, the stock market meltdown that upended your life this year is just the tip of the iceberg…
He says the what’s coming next will be a “cash frenzy” that could cause a panic more severe than any other crisis in history.
Ferris likely has one of the greatest track records of any investor in America.
To date, he’s recommended over 23 stocks that have seen triple-digit gains in the past few years with very little risk.
He accurately called the top of the Nasdaq in 2021… warned about bitcoin before it plummeted 80%… and helped readers cash in on the 2008 Lehman Brothers collapse (those who acted could’ve locked in an 82% gain in 5 months).
Today, he’s stepping forward to issue his next big prediction – and make sure you don’t end up in the same mess most Americans could soon find themselves in.
As he just told me:
“This is what investors have come to expect… that a “buy the dip” approach will always be rewarded…
But I believe following that logic today could be the biggest financial mistake you ever make.
In other words, there’s a lot of money to be made… or a lot of money to be lost, depending on how well you understand what’s now taking place.”
Dan just went on camera to explain his new prediction, and exactly what it means for your money.
In fact, he’s summed up exactly what’s happening in just TWO words.
And he’s outlined the four steps you should take immediately to prepare…
and then