Investing in undervalued stocks with over 20% upside potential, as projected by analysts, can be considered a prudent investment approach. These stocks have the potential for capital appreciation because their current market price does not accurately reflect their true worth. Today, we have focused on United Airlines (UAL), Crocs (CROX), Delta Airlines (DAL), Caesars Entertainment (CZR), and AGCO Corp. (AGCO), as the price-to-earnings ratio of these stocks is trading at a discount to the respective sector median.
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Let’s take a closer look at these stocks.
How High Will UAL Stock Go?
United Airlines operates a large domestic and international route network. The company’s capacity-growth initiatives and expansion of its network both internally and domestically bode well for long-term growth. UAL stock is trading at 4.5 times earnings, which reflects a discount of 79.4% from the industrial goods sector’s median of 22.13x.
Overall, the stock has a Strong Buy consensus rating based on 10 Buys and two Holds. The average UAL price target is $62, implying a solid upside potential of 63.7% from current levels. In the past six months, shares of the company have declined by about 30.9%.
Is CROX a Buy or Sell?
Crocs is an American footwear company. The company’s expansion into emerging markets, coupled with its commitment to developing new products, serves as potential catalysts for sustainable future growth. Interestingly, CROX shares trade at 9.5x earnings, which is below the consumer cyclical sector median of 16.86x.
With nine Buy and two Hold recommendations, Crocs stock has a Strong Buy consensus rating. Further, analysts’ average CROX stock price target of $125.09 implies a 25.8% upside potential from current levels. The stock is down about 22% over the past six months.
What is the CZR Stock Price Forecast?
Caesars provides casino entertainment and hospitality services. Its strategic investments in online gaming, sports betting, and a balanced casino distribution network help solidify its position in the industry. It currently has a P/E ratio of 13.6x, which is down 19.4% from the consumer cyclical sector median of 16.86x.
Out of the 12 analysts covering the stock, 10 recommend a Buy, and two recommend a Hold, giving it a Strong Buy rating. The average CZR stock price target is $61.91, implying a 40.1% upside potential. CZR stock is down 21.6% in the past six months.
Is AGCO Stock a Buy?
AGCO manufactures agricultural equipment and related replacement parts. The company remains well poised to benefit from the growing demand for precision agriculture, a farming management strategy using AI-powered tools. AGCO stock trades at 7.7 times trailing earnings, reflecting a 64.8% discount from the industrial goods sector median.
Overall, AGCO’s Strong Buy consensus rating is backed by five Buy and one Hold rating. The average price target of $146.17 points to a 27% potential upside in the next 12 months. AGCO stock is down 16.6% in the past six months.
Is DAL Stock a Buy?
Delta Airlines is one of the major airlines in the United States. Modernization of its fleet and strong travel demand keep DAL well poised for growth in 2024. The stock is trading at 5.2 times earnings, 76.3% lower than the industrial goods sector median.
Delta stock has a Strong Buy consensus rating based on 10 unanimous Buys. The average DAL stock price target of $53.33 implies a 43.6% upside potential. Shares of the company have declined by 23% over the past six months.
Ending Note
Undervalued stocks are hidden gems with the potential to boost portfolio performance. However, investors must conduct proper research on these stocks before making an investment decision.
