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.
Diese Geschichte stammt aus der August 2017-Ausgabe von Kiplinger's Personal Finance.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der August 2017-Ausgabe von Kiplinger's Personal Finance.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
My Top 30 Index: An Update
A year ago, I put together what I called \"my own reinvention\" of the Dow Jones industrial average, the popular 142-year-old large-cap index.
Balance Your Risk and Reward
These new ETFs let you cut stock market losses. But you'll sacrifice some gains.
IS A HYBRID CAR RIGHT FOR YOU?
Hybrids offer a fuel-saving option for drivers who have reservations about all-electric vehicles. But there are trade-offs.
HOW TO REACH YOUR INVESTING GOALS
Patience helped these four investors make their portfolios work for them.
WHERE TO INVEST NOW
Expect a lot of midyear churn, with a rally toward the end of 2024.
TIPS FOR FINANCING A HOME PROJECT
I recently had a call with a client who was looking to fund the construction of a swimming pool at his house.
MORE WOMEN THAN EVER ARE STARTING BUSINESSES
Retail and travel businesses, along with health, beauty and fitness, are popular with women entrepreneurs.
Finding Home Health Care
It’s important to hire a caregiver you trust.
UNDERSTANDING BOND FUND YIELDS
What's a 30-day SEC yield? A trailing 12-month yield? A yield to maturity? We explain what each measure says about an income fund.
ANSWERS TO YOUR QUESTIONS ON STUDENT LOANS
If you have federal student loans, you may benefit from new government policies. Here's what you need to know.