When it comes to investing, we all love a good deal. Discovering undervalued stocks and waiting for the market to catch up can lead to considerable profits. This strategy becomes even more promising when combined with the Zacks Rank, helping us pinpoint stocks that analysts are increasingly optimistic about.
JD.com: Unlocking the Treasure Trove
JD.com, operating as a direct sales company in China, has garnered the prestigious Zacks Rank #1 (Strong Buy). Earnings projections are on an upward trajectory across various timeframes.
Currently, the shares trade at an enticing 7.8X forward 12-month earnings multiple, a mere fraction of past medians and highs. The forward 12-month price-to-sales ratio sits comfortably below historical benchmarks.
A notable point of interest is the company’s consistent quarterly performance, surpassing the Zacks Consensus EPS estimate in each of its last ten releases. Visualize the revenue trends in the chart below:
Image Source: Zacks Investment Research
KB Home: Building The Path to Prosperity
KB Home, a prominent homebuilder in the U.S., has also captured analysts’ attention, leading to a Zacks Rank #1 (Strong Buy). Earnings expectations have been revised upwards, positioning the stock for potential growth.
The shares are currently trading at a modest 7.3X forward 12-month earnings multiple, comfortably below historical averages. The forward 12-month price-to-sales ratio is also well-positioned for further gains, notably beneath prior highs.
Witness the stock’s performance trend in the chart below:
Image Source: Zacks Investment Research
AllianceBernstein: Charting a Course for Success
AllianceBernstein, holding a Zacks Rank #2 (Buy), offers diversified investment management services to various entities. Positive revisions in earnings expectations have marked its fiscal year, predicting substantial year-over-year growth.
The shares are currently valued at a reasonable 10.2X forward 12-month earnings multiple, comfortably below historical medians and peaks. The forward 12-month price-to-sales ratio aligns with the five-year average, showing potential for expansion.
Explore the stock’s performance trajectory in the chart below:
Image Source: Zacks Investment Research
The Verdict
For value-focused investors seeking hidden gems, the trio of JD.com, KB Home, and AllianceBernstein present compelling opportunities. With Style Scores of ‘A’ and ‘B’ for Value, these stocks hold promise for those who can spot a good deal when they see one.
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The opinions expressed in this article are solely those of the author and do not necessarily reflect the views of Nasdaq, Inc.
