It has been a tough start to the year, with concerns over slowing growth in China, and low oil prices weighing heavily over Wall Street. Unfortunately, the same concerns that have applied pressure to the market through the first part of the year are likely to remain for the foreseeable future, and will keep the pressure on investors.
Now, more than ever, you need to be very disciplined in your approach to investing. You need to avoid the temptation to try to time the market perfectly, because in a volatile market things are somewhat out of your control. The better approach is to seek out high-quality stocks that have upbeat long-term outlooks.
By narrowing your stock universe to only those stocks that have strong long-term outlooks, you can use weakness in the overall market as a way to pick up shares at a nice price.
One way to isolate stocks with bullish long-term outlooks is by finding stocks that a majority of analysts rate highly, and have bullish price targets.
This week I want to look at a five stocks that are trading well below their average price target, and have solid analyst ratings. While analysts are not always right, they tend to have a good insight into a company’s underlying business, and their ratings can provide good insights into the future potential of a stock.
Each of the following stocks are trading at a deep discount to their average price target, and have a majority of bullish analyst ratings.