"The Trump bull run might be getting a tad on the overheated side after going on one of the fiercest rallies off the lows of March. With the CNN Fear and Greed Index swinging right back into “greed” territory, with market momentum moving towards extreme levels, it certainly feels like it’s a good idea to wait around for another pullback. After all, the markets are right back to being “expensive” again, and with the ongoing conflict in Iran, there's certainly room for a big negative surprise."
"Still, not everything is blasting off to new heights. Some consumer-facing stocks are stuck in a correction, and depending on which sector you look at, it feels like the winds of recession have already come blowing in. In any case, this piece will look at some of the pockets of undervaluation that still exist in today's soaring market. So, independent of what happens next with Iran, the following names, I think, are cheap and have ground to make up, should the market decide to broaden out, or maybe spare the following lukewarm stocks as some of the froth gets cut off the top of the high-flying semiconductor stocks."
"First up, we have Meta Platforms ( NASDAQ:META | META Price Prediction), which is too great a company to consider a trap as its forward price-to-earnings (P/E) multiple hovers around 20.0 times. If it's not a value trap, it's real value that's hiding in plain sight. So, why aren't more investors biting at these depths? If it's not high AI CapEx (it seems like only Alphabet ( NASDAQ:GOOG) has earned its hall pass to spend more), the money-losing Reality Labs, which I'm sure many investors would be happy if Meta shelved indefinitely, the somewhat concerning regulatory head"
A rally off March lows has pushed market sentiment back into “greed,” with momentum reaching extreme levels and valuations returning to “expensive.” Ongoing conflict in Iran creates potential for negative surprises, while parts of the market remain in correction, and some sectors show recession-like conditions. The focus is on pockets of undervaluation that could benefit if the market broadens out or if froth is cut from high-flying semiconductor stocks. Meta Platforms is presented as resilient, with a forward P/E around 20 and potential value despite concerns about Reality Labs losses and regulatory pressure. Another company is referenced as having already taken a significant hit from Middle East disruptions.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]