CNBC has selected companies, whose shares are traded at a discount and have upside potential from 20% in the following 12 Months. Forward P indicator / E of such companies is below the average for the last three years, and not less 70% analysts recommend buying stocks. Forward P / E - the ratio of the company's capitalization to the expected profit in the following 12 Months.
Many companies on the list are in cyclical sectors and are under pressure from the rise in the number of new cases of COVID-19 infection.. So, Alaska Air Group shares fell by 14%. Analysts are waiting, that within a year the company's securities can grow by 39%. Buy rating is given by 94% Analysts.
Oil and gas companies also made the list. The largest discount for the Forward P indicator / And у ConocoPhillips - 81%.
The only tech company on the list is Micron. According to analysts, the company's shares have the greatest upside potential in the next 12 months — 47%.
The largest in the list of companies became Amazon. The retailer's shares fell last week after, how the company fell short of analyst expectations for quarterly revenue for the first time in three years. Over the past month, Amazon shares fell by 10%.
Discount stocks with upside potential
| Ticker | Forward P / E | Medium Forward P / E | Discount | Recommend to buy | Growth potential | |
|---|---|---|---|---|---|---|
| ConocoPhillips | COP | 11,3 | 58,3 | 81% | 77,4% | 35,4% |
| Devon Energy | DVN | 8,1 | 29,5 | 73% | 80,0% | 42,6% |
| Alaska Air Group | ALK | 22,0 | 45,6 | 52% | 93,8% | 39,3% |
| Diamondback Energy | FANG | 6,8 | 11,3 | 40% | 80,6% | 43,3% |
| Valero Energy | FLEA | 22,6 | 35,0 | 36% | 75,0% | 29,9% |
| Micron | MU | 7,3 | 10,8 | 33% | 84,8% | 47,3% |
| Baker Hughes | BKR | 20,7 | 26,6 | 22% | 70,4% | 32,5% |
| Amazon | AMZN | 54,6 | 68,0 | 20% | 82,0% | 23,7% |
| Leidos | LDOS | 13,7 | 15,5 | 12% | 80,0% | 23,5% |
| Cigna | CI | 9,5 | 10,5 | 10% | 79,2% | 36,5% |
| News | NWSA | 34,0 | 37,0 | 8% | 80,0% | 31,6% |
| Teleflex | TFX | 27,1 | 27,7 | 2% | 75,0% | 23,0% |
