Investors aren’t giving these companies enough credit. Buy the stocks before others catch on.
In a market obsessed with sexy, fast -growing technology stocks, a better strategy may be to look for wallflowers. Wall Street’s rally this year has been led by tech’s most storied names, including Apple and Amazon.com. That has dimmed investors’ interest in many other firms, particularly those that are short on glamour or face challenges reinvigorating their growth.
We went looking for stocks that seemed cheaper than they deserved to be, and we came up with seven candidates. For the most part, the com panies are attempting to transform themselves in ways that they believe will result in faster growth.
The caveat is that business transformations don’t always succeed. That can make “cheap” stocks get a lot cheaper before they finally hit bottom—or just keep them languishing indefinitely. And even if the turnaround strategies succeed, all of our picks are more likely to offer a get-rich-slowly payoff than overnight riches. (Prices are as of May 31; price-earnings ratios are based on estimated year-ahead profits.)
CENOVUS ENERGY (SYMBOL CVE, $9)
Market capitalization: $7.4 billion
Annual sales: $10.4 billion
Estimated earnings growth: this year, 203%; next year, 28%
Price-earnings ratio: 26
Dividend yield: 1.7%
Although energy stocks have recovered a bit from a nasty 18-month slide that started in the middle of 2014, the group remains depressed. And few stocks have been hit harder than Cenovus, which produces oil and gas, mostly from the tar sands of the Canadian province of Alberta. Its U.S.-traded shares have plummeted about 78% since 2012, so for bargain hunters willing to take on high risk, this is a stock worth considering.
هذه القصة مأخوذة من طبعة August 2017 من Kiplinger's Personal Finance.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة August 2017 من Kiplinger's Personal Finance.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
MAKING A DIFFERENCE IN THE LIVES OF DISABLED VETERANS
He suffered grave injuries in the line of duty. Now he helps other veterans who have disabilities.
DO YOU NEED UMBRELLA INSURANCE?
A policy can protect you from financially devastating events.
Navigating Finances as a Blended Family
Money matters can get complicated when two families unite. Planning is key.
BREAKING UP WITH YOUR BROKER
Be aware of these challenges when you move your money to a new home.
CHOOSE A MEDICARE PLAN THAT'S RIGHT FOR YOU
Consider your health care needs over the long term as you weigh costs and coverage.
Keep Faith in These Stocks
IN 1997, I coined the phrase “faith-based investing.” It has nothing to do with religion or with picking stocks at random.
OUR ESG PICKS ARE THRIVING
Despite an ongoing backlash, our favorite stocks and funds focused on environmental, social and corporate governance issues had a good year overall.
MONEY MANNERS FOR THE MODERN AGE
The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.
ELECTION 2024: POLITICS AND YOUR PORTFOLIO
Who wins the White House matters—but only at the margins when it comes to your investments.
YOUR GUIDE TO OPEN ENROLLMENT
With health care costs on the rise, it’s critical to select a plan that fits your needs at the right price.