One of the stocks that stand out as a great opportunity for investors is PayPal. This e-commerce giant has the highest potential upside of the group at 23.10%, according to analysts’ average price target of $78.12. With a price-to-earnings ratio of 14.1 over the next 12 months, PayPal is trading at a discount compared to the broad-market index. The stock has seen a significant increase of more than 7.5% since the start of the year, and 14% this quarter alone. This surge came after the company surpassed second-quarter expectations, renewing analysts’ confidence in the stock. Bernstein analyst Harshita Rawat recently upgraded shares to outperform, pointing to improving gross profit trends and e-commerce product momentum under PayPal’s new management.
Another stock worth considering is Mondelez International, the maker of Oreo cookies. Despite being down 1.3% year to date, analysts believe that the stock has the potential to gain roughly 13.7%, according to FactSet. The company’s second-quarter beat, driven by strong gross margins, has led to a 9% increase in the stock price this quarter. Goldman Sachs recently named Mondelez among its buy-rated packaged food stocks, citing above-average earnings growth and considering the stock as a high-quality core holding. Analyst Leah Jordan’s $80 price target is just above the consensus price target of $78.79.
Molina Healthcare, a stock tied to Medicare, has faced pressure this year but could see further growth in the future. Despite being down more than 6% this year, the stock could gain another 10.5% over the next year, according to the average price target on FactSet. The company’s rebound this quarter came after better-than-expected quarterly financial results in late July, reinforcing its strong full-year forecast. Analysts are optimistic about the future potential of Molina Healthcare.
In addition to PayPal, Mondelez International, and Molina Healthcare, there are other stocks that could be considered as cheap, long-term winners. Toymaker Hasbro, food company Kraft Heinz, and insurance company Assurant are all worth looking into for potential gains. These stocks may have been overlooked due to recent market volatility but could offer substantial returns in the long run.
Investors looking for opportunities in the market should consider these cheap stocks with long-term potential. With valuations below the broader market and positive outlooks from analysts, these stocks could be a valuable addition to a well-diversified investment portfolio. Remember to conduct thorough research and consider your risk tolerance before making any investment decisions.