With holiday shopping in our midst, there’s no shame in doing some bargain-hunting right now when looking for stocks. If you’re not that frugal, rest assured that I have selected a few that come with annual dividends, a rare thing for such inexpensive stocks. Regardless, it levels the playing field and provides a little peace of mind.
Even in the face of struggles, there are positives to investing in these bargain-priced stocks, and top analysts have, in concert, assigned buy-and-hold ratings to each of them…
Nokia Oyj (NOK)
Nokia (NOK) is a global mobile communications company renowned for its telecom equipment, digital mapping data, and intellectual property licensing. NOK has been significantly bolstered by the ongoing 5G investment surge in North America and China. Moreover, this 5G cycle will likely be more expansive and enduring than before. While NOK has faced challenges such as inflation and supply chain disruptions, its resilience and solid performance underscore its competence as a stock. NOK comes with a relatively fair dividend relative to the less-than-$10 trading position. With projected positive revenue growth anticipated by 2024, NOK presents a compelling case as a potentially rewarding stock investment.
NOK is currently down year-to-date by 18.38% and is trading near the very bottom of its existing 52-week range. With an attractive 0.96 beta score, NOK has a PEG (price/earnings to growth) ratio of 0.8x, a P/S (price to sales) ratio of 0.82x, a P/B (price to book) ratio of 0.97x, an ROE (return of equity) of roughly 20%, and a reasonable 24.57% D/E (debt to equity) measure. For Q3 2023, NOK is projected to report $6.7 billion in sales at $0.09 per share, with a 3-5 year EPS growth rate of 18.1%. NOK has a 2.76% annual dividend yield and a quarterly payout of 3 cents ($0.12/year) per share. With a 10-day average volume of 19.04 million shares, NOK has a median price target of $5.49, with a high of $7.80 and a low of $4.29; this suggests (at its high) a potential price upside of more than 101%.
Crescent Point Energy Corp (CPG)
Next worth considering is Crescent Point Energy (CPG), a Canadian-based oil and gas exploration and production firm with holdings in Western Canada, Utah, and North Dakota, emerging as an enticing “bargain” stock. The surge in global energy demands and subsequent commodity price inflation during 2022 propelled the energy sector to unparalleled profitability, benefiting companies like CPG. Notably, the company capitalized on heightened crude oil and natural gas prices in recent years, strategically leveraging this to substantially diminish CPG’s long-term debt and fortify its financial position, demonstrating a resilient trajectory for potential investors seeking cheap energy exposure.
CPG is currently up by 10.91% year-to-date, trading around the middle of its existing high-low range, and carries a positive 20/200 day SMA (simple moving average). CPG has a 1.71x P/S ratio, a 0.87x P/B ratio, an operating free cash flow of $2.17 billion, and positive TTM (trailing twelve-month) asset and momentum
growth of 6.95% and 22.92%, respectively. For its Q3 earnings call, CPG is expected to post $386 million in sales at $0.30 per share, with a 42.7% 3-5 year EPS growth rate. CPG has an annual dividend yield of 3.75%, with a quarterly payout of 10 cents ($0.40/year) per share. With a 10-day average volume of 2.77 million shares, CPG has a median price target of $10.17, with a high of $12 and a low of $9.63; this indicates the potential for a price jump of more than 51% from its most recent pricing.
Aegon NV (AEG)
Last on today’s bargain stock list is Aegon NV (AEG), a distinguished Dutch insurance conglomerate well-regarded for its global offerings of insurance, savings, pension, and investment products and services. As AEG quietly presents itself as an attractive, undervalued stock worthy of consideration for discerning investors, it’s essential to take note of its effective execution. With AEG’s deleveraging and free cash flow targets for 2023 well within reach, the firm demonstrates a prudent approach to its financial trajectory. AEG’s strategic shift towards prioritizing assets with solid returns on capital while minimizing ratio fluctuations positions it favorably for the future. Analysts project roughly 5% revenue growth in fiscal year 2024; coupled with AEG’s aggressive capital return program, its positive outlook reinforces the case for investors seeking an undervalued gem to complement their portfolio.
Currently down slightly by 0.79% year-to-date, AEG is hanging out around the middle of its range, with room yet for its price to appreciate. AEG has a positive 20/200 day SMA, positive TTM momentum growth of 15.13%, a P/S ratio of 0.66x, and a P/B ratio of 0.90x. AEG beat analysts Q2 estimates on EPS by 22.87%; it also reported year-over-year revenue growth (+86.11%), net income (+137.02%), EPS (+133.33%), and net profit margin (+119.89%). AEG currently carries a free cash flow of over $2 billion and has a projected 3-5 year EPS growth rate of 11.5%. AEG has a 5.59% annual dividend yield with a semiannual payout of 14 cents ($0.28/year) per share. With a 10-day average volume of roughly 847 thousand shares, AEG has a median price target of $5.94, with a high of $7.27 and a low of $3.92; this represents the potential for a price upside of over 45% from its current trading position.