It is generally accepted that in a growing bull market, undervalued stocks should be bought, suggesting that they will grow in the near future. Some stocks have fallen in price, which means the price is more attractive to the entry point.
Below, I represent the undervalued (in my opinion) stocks of the American market, which are capable of showing growth in the near future.
Oil giant Exxon Mobil (XOM)
Although the price is attractive, I am skeptical of Exxon Mobil, since oil prices are not stable, and the cost of drilling wells is high.
Pros for buying, this is a dividend yield of about 5% and P / E 14, which looks attractive.
The company's management predicts that by 2025, the company's profits may double. Perhaps the company management makes too optimistic statements, you should not forget about the risks.
Restaurant Business by Nathan's Famous, Inc (NATH)
In such a market, recommending the purchase of the restaurant owner Nathan's Famous, Inc may seem strange, especially since it is a chain of hot dog restaurants. But there are good reasons for the growth of this stock.
Since the beginning of 2019, Nathan's Famous, Inc has been in constant decline, the stock has reached its lowest price in 52 weeks, falling from 28% in July 2018.
At the same time, the company's revenue for 2018 increased by 8%, the company's net profit continues to grow, sales in the field of catering also grow. The restaurant business of this company was not stable, but it will remain profitable. It can be assumed that the shares of Nathan's Famous, Inc are currently trading at a discount.
Banking sector Bank of America (BAC)
Bank of America is well below its price peak, which was reached in 2018, although it has risen by 100% since then. But since the bank has a steady profit growth, I think that in the foreseeable future, the stock will continue to grow.
Bank of America has a solid loan portfolio, and many of the bank's indicators surpass those of other large banks. A P / E ratio of 9.5 looks very attractive for investment. The company still has potential for growth.
Without a doubt, this action is the most overheated in the list of my recommendations, although the company remains unprofitable, but it seems to me that Roku Inc has growth potential, I will explain why.
This company has more than 30 million users, and their number continues to grow. This year, the company plans to create a content ecosystem that will surpass other competitors in this area. The company's management also develops international markets, which in the long run may affect the company's profit.
Do not forget about the risks, but the profit can be great.
Brunswick Corporation (BC)
Brunswick is preparing for the next breakthrough. The company produces boats, engines for boats, yachts, boats, as well as equipment for fitness. Despite the rapid growth of the entire industry in the past few years, Brunswick has remained aloof.
The company is now folding its segment in the fitness business and wants to concentrate on boats, which can have a positive effect in the future. If the interest of the younger generation in boating does not disappear, the company's shares may resume their growth.
Pharmaceutical company Pfizer (PFE)
Pharmaceutical companies are not in trend right now, few investors prefer to invest in healthcare. Pfizer looks apart from other farm companies.
The company is one of the leading players in the pharmaceutical world market, stable profit and EPS 19, makes Pfizer attractive for investments, also do not forget about stable 3% dividends.
Do not forget about the risks, control over the pricing of drugs by the state, and also not a high revenue growth. All the same, the company looks attractive for investment.
Valmont Industries (VMI)
Valmont Industries has been relatively weak lately, although this company is well diversified, its business has suffered from lower farm profitability. The additional cash flows brought by companies such as utilities and road maintenance cannot consistently generate income, since the demand in these segments depends on the state.
Valmont Industries is subject to cyclical business development, which currently reduces the attractiveness of the company, but in the future with the development of G5 networks and cooperation with mobile operators, the company may be attractive for investment.
Fears about the increase in steel tariffs have become one of the reasons for Valmont Industries’s capitalization to decline, but many of the company's contracts are long-term, which may appear on the stock price in the future.
American Eagle Outfitters (AEO)
American Eagle Outfitters is one of the top retailers in the market. Yes, now is not the best time for companies of such a plan, because online retailers are crowding out retail.
The company's profit is reduced, which leads to a decrease in the price of the company's shares.
Nevertheless, it is worth noting that the company did not adapt well to the realities of the time, while maintaining positive results and stable profits. EPS 14 looks attractive to investors.
The company is actively engaged in e-commerce, which could become a growth driver in the future. Dividend yield may also please 3.1%. The stock price is recovering, American Eagle Outfitters have drivers for growth.