HomeMarket NewsSnatching Up Stocks on the Cheap: A Bargain Hunter's Guide

Snatching Up Stocks on the Cheap: A Bargain Hunter’s Guide

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Bouncing on the trampoline of the stock market, we witness the shifting tides favoring bargain stocks over the high-flying growth stocks. As the pendulum swings, it’s time for investors to indulge in some dumpster-diving: sifting through the market’s value bins to uncover the gems hidden underneath the chaotic clutter. With the razzle-dazzle of the high-fliers fading, the once-shadowed value stocks now present a unique opportunity to build a diversified and extensively secure portfolio at attractive prices.

Pfizer (PFE): A Prescription for Bargain Hunting

Pfizer logo on Pfizer building. Pfizer is an American pharmaceutical corporation.

Source: Manuel Esteban / Shutterstock.com

  • % Below 52-week high: 36.3%

Pfizer (NYSE:PFE) has been through the wringer – shedding over 30% in the past year, courtesy of a negative sentiment surrounding its COVID-19 vaccine revenues. However, a deeper dive reveals a compelling 6% dividend yield and a robust pipeline of drugs with expected revenue growth of 3% to 5% in 2024. Furthermore, Pfizer’s strategic acquisition of Seagen is a game-changer, paving the way for a promising 2024 with a projected $25 billion in incremental sales by 2030. These bold moves signify a future far brighter than its current downtrodden state.

AT&T (T): A Telecommunications Titan on Sale

Image of AT&T (T stock) logo on a gray storefront.

Source: Jonathan Weiss/Shutterstock

  • % Below 52-week high: 15.1%

Despite swimming through troubled waters, AT&T (NYSE:T) has been treading water remarkably well, finding solid ground through impressive debt reduction and a promising 6.6% dividend yield. Analysts, those ever-optimistic fortune tellers of Wall Street, predict a 20% upside from T stock’s current levels, suggesting the riptides won’t drown this communications giant.

PayPal Holdings (PYPL): The Golden Ticket in Financial Technology

Closeup of the PayPal app icon seen on a Google Pixel smartphone. PayPal Holdings, Inc. (PYPL) is a global financial technology company operating an online payment system.

Source: Tada Images / Shutterstock.com

  • % Below 52-week high: 25.4%

PayPal Holdings (NASDAQ:PYPL) may not currently be everyone’s golden child, but with a total payment volume of $1.5 trillion in 2023 and EPS rising 19% year-over-year, this fintech giant packs a punch. Embracing strategic initiatives and pushing the boundaries of innovation, PayPal is resolute in its quest for future growth, making it a bold contender amidst the turbulent market tides.

Revolutionary Strategies Unleashed: Companies Redefining Excellence

Venmo’s Dynamic Shift

Venmo’s new frontiers underscore a seismic shift with the adoption of AI-driven strategies. These developments assert its unyielding commitment to redefining user experiences and consolidating its position as a linchpin of the digital payments realm. Such innovations are akin to an artist meticulously orchestrating every chord for an unforgettable symphony, cementing Venmo as an emblem of groundbreaking financial innovation. For discerning investors, this surges forth a cornucopia of long-term opportunities.

Ford (F): A Phoenix Rising

Ford’s resolute performance illustrates a phenomenal resurgence from the tribulations stemming from the United Auto Workers scandal. It has exceeded Q4 estimates by a staggering $1.6 billion in revenues, while profits have triumphantly outstripped predictions by 17 cents. Ford’s robust 4.9% dividend yield gleams radiantly, eclipsing the sector’s median and enhancing its allure as an investment prospect. Steering its electric vehicle (EV) strategies into calmer waters is akin to a skilled mariner charting a careful course through treacherous seas.

Bargain Stocks To Buy: Kraft Heinz (KHC)

Kraft Heinz stands as a resilient titan in the packaged foods arena, revitalizing its growth trajectory through astute marketing initiatives and inventive product strategies. Its steadfast 11-year dividend payout history and robust 4.6% dividend yield emblazon it as a beacon of promise in the realm of value investments. Peering into the horizon of fiscal year 2024, Kraft Heinz anticipates organic net sales growth of 0% to 2%, buoyed by strategic price amendments and a surge in volume growth. The company’s projected 2% to 4% growth in adjusted operating income speaks volumes about its robust financial trajectory.

H&R Block (HRB): Championing Financial Innovation

H&R Block forges a distinguished path in the value stock sphere, epitomizing its commitment to fintech innovation. Its unswerving dedication to diversifying into novel revenue streams resonates staunchly. The resplendent Q2 non-GAAP EPS performance and a revenue surge of 7.6% YOY denote a compelling narrative. The company’s steadfast dividend policy, with a forward yield of 2.73% and an annual payout of $1.28 per share, underscores its financial grit and dedication to delivering value to its stakeholders. This testament to a balanced growth trajectory is further amplified by eight years of consecutive dividend growth.

JD (JD): Illuminating New Frontiers

JD.com: A Resilient Giant in the Chinese E-commerce Market

JD.com: A Resilient Giant in the Chinese E-commerce Market

JD’s Roller Coaster Ride in the Stock Market

In the past year, the Chinese e-commerce giant JD (NASDAQ: JD) has seen its stock price fluctuate significantly, now resting at approximately $25, a stark contrast from its pandemic highs.

Despite the downturn, JD’s fundamental business metrics tell a tale of resilience and growth, with significant upturns in sales and EPS in recent quarters. The company has surpassed analyst estimates across both lines over the past three quarters, all while trading at a compelling valuation of less than eight times forward earnings. Moreover, it offers an attractive 2.6% dividend yield, 21% higher than the sector median.

Robust Customer Value Proposition

JD is amplifying its customer value proposition through strategic initiatives aimed at enhancing convenience and promoting recurring purchases. These measures include expanding free shipping, reducing minimum order requirements, and providing unlimited free shipping for JD PLUS members. Furthermore, the platform’s live-streaming events during major shopping occasions, such as Singles Day, drew in over 380 million viewers, showcasing the company’s strong user engagement.

Author’s Insight

On the date of publication, Muslim Farooque, the writer, did not possess any positions in the securities mentioned in this article. The opinions expressed are those of the writer, adhering to the InvestorPlace.com Publishing Guidelines. Muslim Farooque is a passionate investor, an eternal optimist, a lifelong gamer, and a tech enthusiast with a particular interest in analyzing technology stocks. He holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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