One of the stocks that appear undervalued in the current market is PayPal. According to analysts, PayPal has the highest potential upside of the group at 23.10%, with an average price target of $78.12. The company’s price-to-earnings ratio over the next 12 months is 14.1, which is less than that of the broader market index. PayPal’s stock has shown promising growth, with an increase of more than 7.5% since the beginning of the year and 14% this quarter alone. This growth comes after the company exceeded second-quarter expectations, renewing analysts’ optimism for the stock after a period of underperformance. Bernstein analyst Harshita Rawat upgraded PayPal shares to outperform on July 31, citing improving gross profit trends and e-commerce product momentum under new management.
Another undervalued stock with growth potential is Mondelez International, the maker of Oreo cookies. Despite being down 1.3% year-to-date, Mondelez’s stock could potentially gain roughly 13.7%, according to analysts. The company’s second-quarter beat, driven by strong gross margins, led to a 9% increase in the stock price this quarter. Goldman Sachs has named Mondelez among its buy-rated packaged food stocks, with analyst Leah Jordan stating that the company should see above-average earnings growth. Jordan’s price target of $80 slightly exceeds the consensus target of $78.79.
Molina Healthcare, a stock tied to Medicare, has seen pressure this year but could potentially see further growth ahead. With the stock down more than 6% this year, analysts predict a potential gain of 10.5% over the next year. Molina’s rebound this quarter comes after better-than-expected financial results in late July, along with a reaffirmed strong full-year forecast. The company’s positive outlook has caught the attention of investors looking for undervalued stocks with growth potential.
In addition to PayPal, Mondelez International, and Molina Healthcare, there are other stocks that could be considered cheap long-term winners in the current market. These include toymaker Hasbro, food company Kraft Heinz, and insurance company Assurant. These companies have shown resilience and potential for growth despite facing challenges in the current market environment. Investors looking for undervalued stocks with long-term upside potential may want to consider adding these stocks to their portfolio.
The recent market volatility has created opportunities for investors to capitalize on undervalued stocks with long-term growth potential. Companies like PayPal, Mondelez International, and Molina Healthcare present attractive investment opportunities for those looking to diversify their portfolio and potentially achieve significant gains over time. By conducting thorough research and analysis, investors can identify cheap stocks with upside potential and position themselves for success in the ever-changing market landscape.