The bear market might have taken a stronghold of the stock markets; however, shrewd investors know this is when the best opportunities are to be unearthed. Therefore, if you count yourself as one of them, you must be on the lookout for stocks that will offer the best value soon.
That said, keeping an eye on the market to identify potential opportunities doesn’t hurt. This piece will cover top stocks to consider investing in during this period based on their growth and earning potential. Without much ado, let’s get started.
Herc Holdings Inc. (HRI)
This is a Florida-based equipment supplier whose main services include renting out aerial equipment, compaction, earthmoving, material handling equipment, air compressors, lighting equipment, trucks, and trailers. The company also offers equipment maintenance, training, repair, labor, and other services. According to analysts at Yahoo Finance, the HRI stock is undervalued, and they project a 26.3% annual return for investors who buy now and hold the stock for the next few years.
Lithia Motors Inc. (LAD)
This US automotive retailer operates 278 stores and sells products on many websites. On top of selling new and used domestic, foreign, and luxury vehicles and related financial, warranty and insurance services, the company also operates auto maintenance and repair services and sells parts. Also, it covers all the automotive market bases – buyers and those priced out of the market who will have to repair their existing cars instead of replacing them. That said, Lithia is another growth stock that pays dividends with a price-earnings ratio of 6.26 as of last month, with most analysts calling it a strong buy.
Devon Energy Corp. (DVN)
This is another company to keep on your watch list as it has performed well and has the potential to continue bettering the fortunes of its investors. The company stock performed well thanks to its capital return for shareholders, outstanding financial performance, and geopolitical conditions that fueled energy stocks. Three months ago, the company stated that it had agreed to purchase leasehold interest and other RimRock Oil and Gas assets. The acquisition was completed in mid-July and should increase Devon’s Williston Basin production by an average of 20,000 barrels of oil per day over the next year and add over 100 undrilled inventory locations. Since the beginning of the year, the company stock has increased by 60.91% and over 160.01% over the year.
Berkshire Hathaway Inc. (BRK-A)
You might wonder how the world’s most expensive stock is part of value stocks to watch out for; however, the company serves as the holding company for businesses representing many brands in industries as diverse as insurance, freight rail transportation, furniture, utilities, batteries, confections, and recreational vehicles. Also, you know who runs the company; Warren Buffet, the most successful value investor.
The company stock might be down 3.13% since the start of the year; however, it’s flush with cash that can be used to gobble up growth stocks and buy back more shares. That is at least the opinion of Seeking Alpha.
That said, diversified earnings coupled with excellent management and a recent spending spree where the company acquired Alleghany, an insurance company, and the purchase of a 20.2% stake in Occidental Petroleum which investors love, means Berkshire Hathaway stock offers value to patient investors. Given that one goes for about $435,000, most will have to settle for fraction shares or pick up budget-priced Class B shares.
Mueller Industries Inc. (MLI)
Another growth stock to watch out for. Mueller manufactures and sells aluminum, brass, and copper. It also deals with plastics in the UK, North America, the Middle East, and China. The company has been around for over a century, which is a testament to its sound business practices, mostly handling piping, industrial metals, and climate. Its shares have remained strong thanks to a strong second quarter, and analysts say the short-term outlook is positive. Thus, MLI is rated a strong buy, and some analysts see it as undervalued, which isn’t surprising thanks to its low 5.8 P/E ratio.
These are just a few picks of stocks that have a potential upside in the next year or so. However, as usual, it’s always good to do your due diligence before putting your money on any stock.
