The stock market can be a tricky thing to navigate these days, with so many stocks and options to choose from. It can be difficult to know which stocks will bring the highest returns and which ones may not pan out. That is why it’s important to stay informed and up-to-date on current trends, especially when it comes to undervalued stocks that may have the potential for high returns in the future.
What Are Undervalued Stocks?
An undervalued stock is one that has been trading for less than its intrinsic value—or the company’s true worth—for a period of time. The main idea behind investing in an undervalued stock is that over time, the price will eventually rise to reflect its true worth. In other words, you buy it when it’s “on-sale” and wait for the price to increase so you can make a profit.
Furthermore, investing in undervalued stocks can help diversify your portfolio by allowing you to spread out your risk across multiple investments while still having the potential to benefit from an increase in share price should the market correct itself.
By diversifying your investments across different industries and sectors, you can mitigate some of your losses should one of your investments fail while also increasing your chances of reaping rewards if one or more of them succeed beyond expectations. Keeping this in mind, here are three undervalued stocks to watch in the stock market right now.
Undervalued Stocks To Watch Now
Target (TGT Stock)
Leading off, Target Corporation (TGT) is an American retail giant that specializes in a wide range of products, including apparel, home goods, and electronics. Target is one of the largest retailers in the United States, with over 1,900 stores across the country.
TGT Recent Stock News
In November, Target announced weaker-than-expected Q3 2022 financial results. In detail, the retail giant reported earnings of $1.54 per share and revenue of $26.5 billion for the third quarter of 2022. For clarity, Wall Street’s consensus estimates for Q3 2022 were earnings of $2.15 per share along with revenue of $26.4 billion.
Additionally, Brian Cornell, chairman, and CEO of Target commented, “In the latter weeks of the quarter, sales and profit trends softened meaningfully, with guests’ shopping behavior increasingly impacted by inflation, rising interest rates and economic uncertainty. This resulted in a third quarter profit performance well below our expectations.“
TGT Stock Chart
In the last month of trading, shares of TGT stock have recovered by 2.90%. Though, shares are still down 29.11% so far in 2022. On Friday, Target stock is trading modestly lower by 0.39% at $164.48 a share.
Alphabet (GOOGL Stock)
Next, Alphabet Inc. (GOOGL) is an American multinational conglomerate. It was created through corporate restructuring and became the parent company of Google and several other companies previously owned by or tied to Google.
GOOGL Recent Stock News
In October, Alphabet reported weaker-than-expected financial results for Q3 2022. Getting straight to it, Alphabet announced earnings of $1.06 per share and revenue of $69.1 billion for the 3rd quarter of 2022. This is versus the Street’s consensus estimates for the quarter, which was an EPS of $1.25, and revenue estimates of $71.0 billion.
Furthermore, Ruth Porat, CFO of Alphabet commented. “Our third quarter revenues were $69.1 billion, up 6% versus last year or up 11% on a constant currency basis. Financial results for the third quarter reflect healthy fundamental growth in Search and momentum in Cloud, while affected by foreign exchange. We’re working to realign resources to fuel our highest growth priorities.”
GOOGL Stock Chart
In the last month of trading, shares of GOOGL have rebounded 20.65%. However, GOOGL stock is still down 30.57% YTD. Meanwhile, on Friday, shares of Alphabet stock are trading down 0.41% at $100.58 a share.
Salesforce (CRM Stock)
Lastly, Salesforce Inc. (CRM) is an American cloud-based software company. In short, the company provides customer relationship management (CRM) services and ascends applications for small, medium, and large enterprises.
CRM Recent Stock News
Just this week Salesforce announced better-than-expected third-quarter 2022 financial results. Diving in, the tech company reported Q3 2022 earnings of $1.40 per share and revenue of $7.8 billion for the quarter. Also, the company reported a 14.2% increase in revenue versus the same period, the previous year. What’re more, the company said it expects fourth quarter non-GAAP earnings of $1.35 to $1.37 per share, and revenue estimates of $7.932 billion to $8.032 billion.
Moreover, Marc Benioff, Chair & Co-CEO, Salesforce commented, “We had a solid quarter with revenue of $7.84 billion, up 14% year-over-year or 19% growth in constant currency, and record operating margin. We’re grateful to our customers for their commitment, especially as we help them succeed in this challenging environment. There’s never been a more important time for our customers to connect with their customers in a whole new way.“
CRM Stock Chart
What that said, during Friday’s power hour trading session, shares of CRM stock are trading at $144.43 per share.