Discover Undervalued Stocks with Strong Growth Potential for Your Year-End Portfolio
The stock market’s upward trend this year doesn’t mean the opportunity for bargains has vanished. Several stocks, overlooked in the market rally, still boast solid long-term outlooks. Now is the time to consider adding these undervalued gems to your portfolio before they experience a potential surge. Here are three dirt-cheap stocks with promising prospects to consider before the year concludes.
- Pfizer (NYSE: PFE)
Pfizer caught the spotlight with its blockbuster coronavirus vaccine, contributing to billions in earnings and a record-breaking revenue of over $100 billion last year. Despite concerns about declining coronavirus-related revenue and upcoming product exclusivity losses, the recent dip in Pfizer’s stock presents a buying opportunity.
Pfizer’s strategic response includes an impressive streak of product launches, aiming for 19 new products or indications in 18 months, of which 13 have already been completed. The company is diversifying through acquisitions, anticipating robust revenue growth to offset exclusivity losses. With a forward earnings estimate of only 18x, Pfizer stands out as a compelling stock for long-term investors.
- Chewy (NYSE: CHWY)
Chewy achieved profitability last year and has consistently increased spending from its loyal customer base, even during economic challenges. The Autoship service, responsible for over 76% of net sales, offers a steady revenue stream as it continues to gain traction. Autoship sales surged 13% in the latest quarter, showcasing the company’s stability.
Investors should take note of Chewy’s expansion into the Canadian market, with positive customer demand and satisfaction. Despite its current trading price at 35x forward earnings estimates, significantly down from earlier this year, Chewy remains an attractive investment considering its progress and growth potential.
- Teladoc Health (NYSE: TDOC)
Teladoc Health faced skepticism as its growth slowed during the later stages of the pandemic, coupled with noncash goodwill impairment charges tied to an acquisition. The company responded with a strategy balancing revenue growth and profitability, yielding positive results in the latest quarter.
Teladoc’s focus on chronic care, a crucial market serving half of Americans with at least one chronic condition, is proving successful. Chronic care programs, boasting over 1.1 million active users, contributed to revenue growth. An operational review and cost structure assessment further indicate Teladoc’s commitment to long-term success. With shares at their most affordable in relation to sales, Teladoc stands out as a top stock for investors eyeing the new year and beyond.
