4 Stocks Trading Well Below Intrinsic Value, Poised for Big Returns

investing.com:

When investing in stocks, it's crucial to analyze the intrinsic value alongside market trends.

Fair Value, representing a stock's target price, offers valuable insights into whether a company's shares are undervalued or overvalued. While not foolproof, it helps assess a stock's potential for growth or decline.

Today, we'll examine several US stocks that, based on Fair Value, are currently trading below their target price, indicating potential upside.

To conduct this analysis, we'll utilize InvestingPro, which provides this ratio along with other essential metrics for each company.

Delta Air Lines Inc (NYSE:DAL) is an American commercial airline founded in 1924 and based in Atlanta, Georgia.

It is a founding member, along with Aeromexico, Air France (EPA:AIRF), and Korean Air (KS:003490), of SkyTeam, a global airline alliance.

Its dividend yield is +0.88%.

Source: InvestingPro

It reports its results on April 11 and revenue growth of +8.70% is expected. Looking ahead to 2024 the EPS (earnings per share) forecast is +3.6%.

Source: InvestingPro

To its credit it has upside potential for FY24 and FY25 margins driven by revenue inflection and moderating cost pressures from 2H2024 onwards (benefiting from lower maintenance expenses and a slowdown in pilot wage increases).

UBS initiated coverage of several airline stocks Wednesday highlighting four names it considers buys: Southwest Airlines (NYSE:LUV), American Airlines (NASDAQ:AAL), Alaska Air (NYSE:ALK) Group and Delta Air Lines.

Source: InvestingPro

UBS gives it potential at $59, while the company's Fair Value using InvestingPro's models would stand at $55.12.

Source: InvestingPro

It has 96% Buy, 4% Hold and 0% Sell ratings.

Its shares are up +42.88% in the last 12