The markets continue to trade just below the all-time highs as investor optimism remains upbeat. Three rate cuts this year, and the hope of a partial trade deal between the U.S. and China on the horizon have kept the bull market humming and should continue to keep strength in the major indexes into the new year.
As the markets have risen so have stock valuations. Investors want to keep their money in the market but are rightly concerned about a possible selloff any on signs of economic weakness or news that negotiations between the U.S. and China have faltered.
A good way to keep your money at work is to look for highly-rated stocks that are trading at low valuations. Using our stock screener we have identified three stocks that have fantastic stock scores and appear to be undervalued.
Here are 3 of our favorite top scoring stocks that are trading at big discounts in today's market.
Buckle (BKE)
Apparel retailer Buckle (BKE) has appreciated 37% year to date with the company posting better than expected top and bottom line numbers each of the last two quarters. The stock took off in June and is currently trading just shy of its 52-week high. Last quarter the company earned $0.53 per share, up from $0.42 during the same period last year. The stock gets an overall score of 83 from InvestorsObserver's Stock Score Report, and shares are trading at a very attractive 13 times earnings. The stock currently has a 4.4% dividend yield. BKE trades at $26.39 with an average price target of $21.00.
Citigroup (C)
Citigroup (C) gets an overall score of 82 on InvestorsObserver's Stock Score Report. The stock is trading just below its 52-week high and remains an attractive value with shares trading at just 10 times earnings. Profits are up 26% per annum over the last five years, and looking ahead analysts expect earnings to rise at an annual rate of 13.5% over the next five years. The low valuation and strong growth estimates suggest the stock has additional upside and the company is currently paying a 2.6% dividend. Citigroup last reported earnings at the start of November of $1.84 per share for Q3, up from $1.73 during the same period last year. C is up 45% in 2019 and is trading at $75.66 with an average price target of $88.63.
Goldman Sachs (GS)
Financial giant Goldman Sachs (GS) is currently trading just below its 52-week high with the stock up 33% since the start of the year. Goldman reported mixed Q3 numbers in mid-October with a small earnings miss and better than expected quarterly revenue. Goldman has grown earnings at an annual rate of 8% over the last five years and looking ahead analysts expect to see the bank grow profits by 4% per annum over the next five years. The stock remains an attractive value at just 10 times earnings, and GS is currently paying a 2.3% dividend. GS gets an overall ranking of 83 from InvestorsObserver's Stock Score Report. Shares are now trading at $221.23 with an average price target of $253.00.