3 Undervalued Stocks to Buy as Optimism Persists Despite Rate-Cut Uncertainty
Since the start of the year, the S&P 500 has hit new record highs, gaining 8.3% in the process.
Despite recent data showing slightly worse-than-expected inflation and unemployment rates, there hasn't been a correction yet, indicating that buyers are in control.
Given this scenario, one interesting strategy is to look for undervalued companies with bullish potential as market optimism persists.
In this regard, three stocks stand out, and in this piece, we will discuss them individually.
Chevron (NYSE:CVX) experienced sharp declines last October following news that it had acquired Hess (NYSE:HES). However, it has been gradually recovering since the beginning of the year, gaining over 3%.
With the stock still about $36 below its historical highs, there's room for further gains. The fair value index suggests a potential move of more than 23%, indicating bullish prospects.
Source: InvestingPro
It's important to highlight that Waren Buffett's Berkshire Hathaway (NYSE:BRKb), has boosted its investment in the company.
As per the latest f13 report, which mandates large investment funds to disclose current holdings, Berkshire Hathaway has purchased 16 million shares, raising its stake in the portfolio to 5.3%. This move positions it as the fifth largest holding.
The company maintains strong growth fundamentals and the potential to enhance free cash flow, allowing for successive sharing of growing profits with shareholders.
STMicroelectronics (NYSE:STM), a French-Italian company, makes electronic circuits. In recent years, these circuits have become crucial in the global semiconductor landscape.
Despite entering a consolidation phase, the company's stock price remains in an overall uptrend.
The demand side needs to surpass the
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