We may earn commissions if you use the recommended services on this site.  

Analysts' Top Picks: Cost-Effective Stocks from the U.S. and Global Markets with Potential to Double

Latest Business News

The Market Rally and Bargain Stocks

Cheaper Stocks Outperforming

The market rally has been strong this year, with the S&P 500 and MSCI World index both experiencing significant gains. However, as valuations have risen, there are still some relatively cheap stocks that offer potential upside. CNBC Pro used FactSet to screen for stocks that are cheaper than both indexes and found several with attractive valuations. These stocks have a forward price-to-earnings ratio lower than the S&P 500 and MSCI World index, an average potential upside to the price target of more than 20%, and a buy rating of at least 50%.

Potential Upside in U.S. Stocks

Among U.S. stocks, Delta Airlines stood out with a potential upside of 34% and an 85% buy rating. Despite being in the tech sector, PayPal was the only tech stock that made the list with a forward P/E ratio of 13.5. Disney also made the cut with a slightly lower P/E ratio of 17.8. Wells Fargo predicts that Disney shares may rally on the potential sale of their non-core linear assets.

Global Stocks with Low P/E Ratios

Looking globally, automakers Porsche and Stellantis have the lowest P/E ratios at 3 and 3.5, respectively. These companies offer investors the opportunity for value investing in the automotive sector. French firm Teleperformance showed the highest potential upside from analysts with an average upside of 95% and a strong 81% buy rating. With a price target of 232 euros ($254), Teleperformance offers nearly 75% upside for investors. Analysts predict that Teleperformance will benefit from the implementation of AI and technology in the customer experience industry, leading to a strong second half of the year.

Conclusion: Opportunities for New Businesses in the Market Rally

Riding the Wave of Cheaper Stocks

The current market rally and the presence of bargain stocks present an interesting landscape for new businesses looking to make their mark. While the overall market has experienced significant gains, there are still opportunities for those willing to seek out undervalued stocks with potential upside. This opens up the possibility for new businesses to enter the market and capitalize on these cheaper stocks, setting themselves apart from more established competitors.

Focusing on Untapped Potential in U.S. Stocks

For new businesses in the United States, stocks like Delta Airlines, PayPal, and Disney offer promising potential upside. Delta Airlines stands out with a significant upside and a high buy rating, making it an attractive investment opportunity. PayPal, as the sole tech stock on the list, presents an interesting opportunity for businesses operating in the technology sector. Furthermore, Disney's potential sale of non-core linear assets may create opportunities for new businesses to collaborate or provide innovative solutions in this ever-evolving industry.

Capturing Value in Global Markets

New businesses with a global perspective can explore the value investing potential in global stocks like Porsche, Stellantis, and Teleperformance. The low price-to-earnings ratios of Porsche and Stellantis indicate undervaluation in the automotive sector, offering new businesses a chance to enter or expand within this industry. Furthermore, Teleperformance's high potential upside and positive analyst sentiment suggest that businesses operating in the customer experience industry, especially those leveraging AI and technology, could benefit from the company's predicted strong second half of the year. In conclusion, the market rally and the availability of bargain stocks create a conducive environment for new businesses to thrive. By strategically identifying and capitalizing on the opportunities presented by cheaper stocks, both in the U.S. and global markets, new businesses can position themselves for success in an evolving and potentially lucrative investment landscape. Article First Published at: https://www.cnbc.com/2023/07/31/analysts-say-these-us-global-stocks-are-cheaper-than-broader-market.html

LLC Filing & Registered Agent Services

Compare Online LLC Filing Services Today

We work with the market leaders in business formation and registered agent services.

Getting started is simple and inexpensive. Form your business today & secure your brand name before someone beats you to it! Click below to view the Top 3 Best LLC and registered agent service providers.
View Top 3 Providers Now

Filing An LLC Can Be Complicated

Streamline Your LLC Filing Online for $39

Northwest Registered Agent is the best-rated service for first time filers.

Get professional LLC formation & registered agent services for only $39 + state filing fee. This offers includes your full LLC setup, plus a private business address, lifetime support, and more.

Trusted by Millions. Save 82% Today.