Best bargain stocks to buy is a simple but tricky concept. Whenever shares trade lower than an established multiple, whether that by earnings, sales, book or some other metric, there might be a reason for it. In many cases, it’s not a good one.
Let’s face reality here. In the age of the internet, it’s difficult for a well-known publicly traded enterprise to be woefully undervalued. That’s because information is readily available. If the market genuinely believed there was value to be extracted, the shares in question would have likely jumped higher by now.
Still, there are thousands upon thousands of opportunities. It’s impossible to pay attention to them all. In that regard, Wall Street can certainly miss a few. With that, below are intriguing ideas for best bargain stocks to buy.
BioNTech (BNTX)
Operating under the biotechnology sector, BioNTech (NASDAQ:BNTX) develops and commercializes immunotherapies for cancer and other infectious diseases. Of course, the company made major waves as a critical partner in developing a Covid-19 vaccine. Moving forward from the pandemic, BioNTech focuses on therapeutic candidates that target myriad diseases, such as melanoma and breast cancer.
However, the market appears fixated on BNTX in relation to its Covid-vaccine-boosted financial performance. With fears of the SARS-CoV-2 virus having faded dramatically, BioNtech may take a while to return back to such lofty peaks. For example, analysts project fiscal 2024 revenue to land at $3.04 billion, which is 26.4% down from last year’s print of $4.14 billion.
In turn, BNTX trades at only 22.42X trailing-year earnings, below 61% of sector peers. It also trades at a subterranean 1.05X tangible book value.
Still, the overall consensus among analysts stands at a moderate buy with a $111.64 price target. That implies 21% upside potential, making BNTX one of the best bargain stocks to buy.
Vital Energy (VTLE)
Listed under the broader hydrocarbon industry, Vital Energy (NYSE:VTLE) specializes in exploration and production or upstream endeavors. Per its public profile, Vital engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas. Since the start of the year, VTLE has gained over 16% of its equity value.
Fundamentally, the company should benefit from supply chain challenges related to geopolitical flashpoints. Cynically as well, VTLE stock could see a swing higher due to demand problems with electric vehicles. In other words, combustion-powered vehicles may have a longer relevancy cycle and that directly ties into the upstream hydrocarbon business.
Interestingly, covering experts believe that in fiscal 2024, Vital will post revenue of $1.87 billion. If so, that would represent a nearly 21% lift from last year’s print of $1.55 billion. Also, fiscal 2025 could see sales of $1.9 billion.
Even with the attractive business, VTLE trades at a lowly trailing-year sales multiple of 0.66X. That makes Vital one of the best bargain stocks to buy, especially considering its optimistic analyst rating.
JinkoSolar (JKS)
To be completely straightforward, JinkoSolar (NYSE:JKS) easily ranks as the riskiest idea on this list of best bargain stocks to buy. Since the January opener, shares of the China-based solar energy specialist – which focuses on the design and development of photovoltaic (PV) products – slipped 28%. In the trailing year, JKS is down almost 50%.
Adding to the woes is uncertainty over U.S. monetary policy. While JinkoSolar is headquartered in China, it does significant business stateside. With borrowing costs soaring in response to blisteringly hot inflation, the dynamic badly hurt the solar industry. For fiscal 2024, the average consensus calls for revenue reaching $16.6 billion. That’s almost 1% down from last year’s print of $16.72 billion.
Obviously, that’s hardly encouraging. However, the most optimistic target calls for sales of $17.98 billion. And in fiscal 2025, the highest target anticipates a top line of $21.21 billion. What’s more, JinkoSolar trades at a sales multiple of 0.08X.
To be fair, analysts rate JKS a consensus hold. However, the average price target lands at just over $32, implying 27% upside potential. For speculators, it could be one of the best bargain stocks to buy.
— Josh Enomoto
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Source: Investor Place