When a stock falls in price, it's hard to know whether it's time to cut and run, or buy it at a bargain.
That's especially true when the markets are as volatile as they were this week. After another down day on Thursday, the Dow closed less than 100 points higher than its low from February's correction.
That means a lot of stocks are available at a discount. But it also means some stocks are closer to their real value after one of the longest bull markets in history.
For those who sort out which is which, a correction is a can't-miss buying opportunity.
Luckily, the Money Morning Stock VQScore™ system makes it easy. This proprietary system analyzes the underlying fundamentals and compares them to the stock's performance. The system is excellent at showing us which unloved stocks are primed for growth.
Today, we've got six new stocks that Wall Street is overlooking. Best of all, each has just been upgraded by our system. These are among the most undervalued stocks out there, according to our analysis - meaning now is the time to buy.
Let's take a look...
NN Inc. (Nasdaq: NNBR) is a company based in Tennessee that manufactures must-have metal components for the medical, automotive, defense, and aerospace industry. NN is a small company, with a market cap around $685 million. Despite its size, the company has shown a track record of growth. NN's earnings per share (EPS) has risen every year since 2010 and is projected to grow another 25% over the next two years.
The company met EPS expectations in its latest earnings report, but the market has turned bearish toward the stock. The share price has fallen from near $30 at the beginning of February to below $25 today.
Not everyone on Wall Street is overlooking the stock, however. One target is as high as $36. That's a potential gain of 54% from today's price.
Our system agrees and has marked NN Inc. as an attractive bargain at its current price.
Plus, if you own NNBR, you can collect a 1.13% dividend yield.
It's puzzling what triggered the fall of Entravision Communications Corp. (NYSE: EVC) from $7.40 per share in late January to its current price of $4.75. In addition to its strong fundamentals, analysts like it too.
Entravision is a media company based in Santa Monica specializing in marketing and data analytics. The company doubled its sales in 2017 from the year before, going from $258.5 million to $536 million. EPS for the most recent quarter was up 75% from a year earlier.
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Wall Street analysts give EVC shares an average target price of $9, indicating we're not the only ones who can see that this one is trading well below its real value.
Entravision also offers a dividend yield of 4.12%, giving investors one more reason to grab this stock at a discount.
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Investors Real Estate Trust (NYSE: IRET) is a real estate investment trust based in North Dakota and specializing in commercial and retail spaces, as well as multi-family housing. The company has been in business nearly 50 years and is steadily producing income for its shareholders.
In spite of that, the stock fell 26%, from $6.28 in October $4.65, in late February, though it has been on the rise in the last several weeks.
That comes even as analysts project revenue to quadruple this year, suggesting investors have let this one slip through the cracks.
IRET delivers a 5.57% yield, giving you twice the return of a 10-year Treasury, plus the opportunity to watch your principal investment rise.
Now's a great time to pick up this overlooked income producer.
Tobacco stocks, like the UK-based British American Tobacco Plc. (NYSE: BTI), are subject to public sentiment that doesn't necessarily reflect the company's profit potential. Perhaps that's why BTI stock has fallen nearly 25% since Jan. 24. Because, from a numbers standpoint, this stock looks solid.
In the midst of that decline, British American beat earnings estimates and boosted EPS by 21% in the last year. Current estimates project steady earnings growth to continue through 2021.
This makes sense given that the maker of the Lucky Strike and Pall Mall brands faces only a small field of competition in this shrunken but inextinguishable industry.
Our system looked at the numbers and saw that the market was undervaluing this stock. Whatever public sentiment might be, BTI projects to be a highly profitable company for the next several years - and eventually investors will catch on to that.
TransCanada Corp. (NYSE: TRP) is a Canadian company whose pipelines transport 25% of North America's natural gas. After peaking around $52 last July, the stock now sits near $41, just above its 52-week low.
But that's Wall Street's mistake.
TransCanada's net income skyrocketed in 2017, rising 2,300% from the year before. That's even more impressive given that TRP pays a 5.08% dividend yield. It has boosted its dividend payment for each of the last 17 years and is on pace for "dividend aristocrat" status, as it plans to continue to do so for the foreseeable future.
TRP has invested $3.5 billion in five new pipelines in Mexico, where natural gas production is expected to double by 2020. That and the continued surge of gas production in the United States should put TRP on track for rising profits for years to come.
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Click here to learn how to get in on the ground floor while there is still time!
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