In the current market characterized by historically high valuations, savvy investors can still find promising opportunities in undervalued health care and energy companies. Despite strong performances from major indices like the Dow Jones Industrial Average and S&P 500, which reached all-time highs in November, many stocks remain overlooked. Using CNBC Pro's stock screener, several companies were identified that meet specific criteria: a forward price-to-earnings ratio below 25, a consensus buy rating from analysts, and an average 12-month price target suggesting at least a 30% upside. Notable mentions include Biogen, which has faced challenges but shows potential for a 56% upside, and Regeneron Pharmaceuticals, projected to return about 44%. Additionally, energy firms such as Devon Energy, AES, and SLB are also trading at attractive valuations, with AES predicted to benefit from growing demand for renewable energy solutions. This article highlights the potential for significant returns from these undervalued stocks.
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