8 Undervalued Stocks Getting Help From the U.S.
Investor takeaway: Its shares are up 19.5% this year, and have a three-year, average annual return of 13%. Analysts give its shares 10 "buy" ratings, five "buy/holds," and 12 "holds," according to a survey of analysts by S&P. S&P has a "strong buy" rating and $72 price target on its shares, which is a 16% premium to the current price. Analysts' consensus estimate is for earnings of $4.35 per share this year and $4.86 per share next year, or 12% growth.
2. Wells Fargo(WFC)
Company profile: Wells Fargo, with a market value of $180 billion and a customer asset base of $1.3 trillion, is the fourth largest bank in the U.S. It provides banking, insurance, investment, mortgage and consumer finance services. The company is the Fidelity Mega-Cap Fund's second-largest holding, at 4.2% of the portfolio.
Dividend Yield: 2.6%
Investor takeaway: Its shares are up 24% this year and have a three-year, average annual return of 21 %. Analysts give its shares 15 "buy" ratings, nine "buy/holds," eight "holds," and one "sell," according to a survey of analysts by S&P. It reported net income of $4.6 billion, or 82 cents per share, in the second quarter, up 9% from the first quarter and 17% year over year. Analysts' consensus estimates are for earnings of $3.31 per share this year, and rising 10% to $3.65 next year.
1. Comcast(CMCSK)
Company profile: Comcast, with a market value of $90 billion, is the largest operator in the cable industry as its networks reach 53 million households, serving 22 million video, 18 million Internet, and 9 million phone customers. It's the Fidelity Mega-Cap Fund's eighth-largest holding at 2.5%.
Dividend Yield: 1.68%
Investor takeaway: Its shares are up 40.7% this year and have a three-year, average annual return of 35%. Analysts give its shares two "buy" ratings, three "buy/holds," and one "hold," according to a survey of analysts by S&P.
Comcast's second-quarter profit rose 32% and its NBCUniversal business said it might break even on its Olympics coverage as it surpassed its Olympics advertising-sales goal by $100 million. Analysts' consensus estimate is that it will earn $1.92 per shares this year, and grow that by 15% to $2.20 next year.