PayPal is one of the top picks when it comes to cheap stocks that have the potential for long-term gains. With an upside of 23.10% according to analysts’ average price target of $78.12, PayPal is considered to be undervalued compared to the broader market. The company has a price-to-earnings ratio of 14.1 over the next 12 months, lower than the broad-market index. PayPal’s stock has shown resilience, gaining over 7.5% since the beginning of the year and 14% this quarter alone. This surge in the stock price can be attributed to the company surpassing second-quarter expectations, which reignited analysts’ enthusiasm for the stock. Bernstein analyst Harshita Rawat recently upgraded PayPal shares to outperform, citing improving gross profit trends and e-commerce product momentum under the company’s new management.
Mondelez International is another stock that investors should consider, especially if they are looking for cheap yet well-liked options. Despite being down 1.3% year to date, the stock has gained over 9% this quarter following a strong second-quarter performance driven by robust gross margins. The average price target for Mondelez implies a potential gain of approximately 13.7%. Goldman Sachs recently named Mondelez among its buy-rated packaged food stocks, highlighting the company’s above-average earnings growth potential. Analyst Leah Jordan believes that Mondelez is a high-quality core holding with significant upside potential, setting a price target of $80, slightly above the consensus target of $78.79.
Despite facing pressure earlier this year, Molina Healthcare is considered a promising stock that could see further growth in the future. The stock, which is down more than 6% year to date, has the potential to gain another 10.5% over the next year, based on the average price target on FactSet. Molina Healthcare has already shown signs of recovery this quarter after reporting better-than-expected financial results in late July and reaffirming its strong full-year forecast. Analysts see potential in Molina Healthcare due to its ties to Medicare and the positive outlook for the healthcare sector.
In addition to PayPal, Mondelez International, and Molina Healthcare, there are other stocks that could be considered as cheap, long-term winners. Toymaker Hasbro, food company Kraft Heinz, and insurance company Assurant are among the stocks that investors might want to keep an eye on. These companies have the potential to deliver strong gains over the long term, making them attractive options for investors looking to capitalize on undervalued stocks in the current market conditions.
While the broader market may have experienced recent volatility, there are still opportunities for investors to find cheap stocks with significant long-term growth potential. By carefully analyzing the fundamentals and outlook of individual companies, investors can identify stocks that are trading below their intrinsic value and are poised for substantial gains in the future. It is essential to conduct thorough research and due diligence before investing in any company to ensure that it aligns with your investment goals and risk tolerance.