Despite their recent struggles, these three industry giants hold the promise of significant upside. With favorable consensus price targets and ratings, attractive P/E valuations, solid earnings growth projections, and some highly attractive dividend yields, they present a hopeful picture for income and value-oriented investors. Let's delve into these stocks that, despite their recent setbacks, might be the exciting investing opportunity you've been looking for.
Analyst Price Targets: Potential Upside for PayPal Stock
$59.09 -0.67 (-1.12%) (As of 07/8/2024 ET)
- 52-Week Range
- $50.25
▼
$76.54 - P/E Ratio
- 14.88
- Price Target
- $73.82
PayPal NASDAQ: PYPL is a leading digital payment platform that enables digital and mobile payments on behalf of consumers and merchants. Year-to-date, the stock has underperformed in the financial sector, with its stock down almost 3%, and over a year, it is down over 12%. However, from a valuation perspective, PayPal is now trading with a P/E ratio of 15 and a forward P/E ratio of 13.04, making it an attractive option for value investors.
The stock also has projected earnings growth of 9.9% for the entire year. In its most recent report on April 30, the credit services provider reported $1.08 EPS for the quarter, missing analysts' consensus estimates of $1.22 by $0.14. The company had revenue of $7.70 billion for the quarter, compared to analyst estimates of $7.52 billion. Its revenue for the quarter was up 9.4% compared to the same quarter last year.
Analysts see considerable upside for the stock, with a consensus price target of $73.82, forecasting an almost 24% upside. Most recently, the stock has received several positive analyst actions: on July 2, Susquehanna analysts upgraded the stock from neutral to positive, and on June 25, analysts at Evercore ISI boosted its target from $65 to $70.
Analyst Sentiment on Pfizer: Forecasting Future Performance
$27.92 -0.12 (-0.43%) (As of 07/8/2024 ET)
- 52-Week Range
- $25.20
▼
$37.80 - Dividend Yield
- 6.02%
- Price Target
- $35.54
Pfizer Inc. NYSE: PFE is a US-based multinational biotech company that is a research-based pharmaceutical company focused on discovering, producing, and marketing medicines and vaccines. Like many other vaccine names that benefited greatly during the pandemic, Pfizer still suffers from its post-pandemic gains hangover, with the stock down 3.6% YTD and a whopping 24% over the previous year.
However, this slump provides a potentially excellent risk-reward opportunity for value investors, especially those interested in dividend income. The stock offers a 5.95% dividend yield and a forward P/E ratio of 10.12. From a technical perspective, Pfizer has bottomed out in May, and if the stock can reclaim its 50-day SMA around $30, a trend break is confirmed. Like PayPal, analysts forecast a significant upside for this high-dividend-yielding name, with a consensus price target of $25.54, forecasting over 28% upside.
Analyst Ratings for Alibaba: Forecasting Significant Upside
$73.50 -1.02 (-1.37%) (As of 07/8/2024 ET)
- 52-Week Range
- $66.63
▼
$102.50 - Dividend Yield
- 1.33%
- P/E Ratio
- 17.13
- Price Target
- $108.79
Alibaba NYSE: BABA is a Chinese multinational conglomerate specializing in e-commerce, retail, and technology. In recent years, Alibaba has been plagued by the economic and property crisis, along with regulatory risks in China. As a result, the stock has fallen almost 10% over the previous year and close to 2% YTD. However, with a multi-year consolidation and trading near support, a forward P/E ratio of 8.56, and a current P/E ratio of 17.3, it might present an opportune time to buy.
The stock also has a dividend yield of 1.3% and positive projected earnings growth for the full year of 12.07%. Analysts are bullish on Alibaba, with a moderate buy rating and a price target forecasting a whopping 44% upside. Most recently, on June 6, analysts at Loop Capital boosted their price target from $111 to $115, predicting over 45% upside at the time of the report.
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