Finding cheap stocks is all but impossible. Of course, that’s not uncommon when markets continue notching all-time highs. Unfortunately, overpriced markets pose significant risks for investors looking to deploy additional capital.
But that doesn’t mean there aren’t any stocks trading at relatively attractive valuations. And that’s an important concept to keep in mind in this long-in-the-tooth bull market where most stocks are overvalued based on traditional metrics.
That’s why the search for value is the single most important principle to employ right now. Simply put, should the market fall off the cliff, as many pundits expect, stocks bought at a discount to their intrinsic value fare much better than other stocks trading at higher valuations.
These so-called value stocks are often stocks that have fallen out of favor with the market — for any number of reasons. But oftentimes, the reasons a stock is trading below intrinsic value are transitory in nature, such as a bad quarter or two.
Hot Cheap Stocks To Watch Right Now: International Business Machines Corporation(IBM)
- [By Chris Lange]
International Business Machines Corp.’s (NYSE: IBM) most recent results are due on Thursday as well. The consensus estimates call for EPS of $5.16 and $22.07 billion in revenue. Shares ended the week at $163.14 apiece. The consensus price target is $161.95, and the 52-week range of $139.13 to $182.79.
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Last but not least, the conversion and consolidation of the American healthcare colossus will be a bonanza for tech companies engaged in networking, software, and the cloud. Those best suited to handle the task are the usual suspects: Cisco Systems (Nasdaq: CSCO), Microsoft (Nasdaq: MSFT), IBM (NYSE: IBM), CA Technologies (Nasdaq: CA), Oracle (Nasdaq: ORCL), and Hewlett Packard (NYSE: HPE).
- [By Keith Speights]
Illumina was busy during the fourth quarter. Key developments over the past three months included:
The commercial launch of the NovaSeq system, a new high-throughput sequencing system that the company hopes can dramatically lower genomic sequencing costs. The launch of the Bio-Rad single-cell sequencing solution. The launch of the TruSight Tumor 170, a 170-gene next-generation sequencing solution designed to provide a better picture of a tumor’s genomic landscape. The announcement of a deal with Philips (NYSE:PHG) to integrate Illumina’s sequencing systems with Philips’ IntelliSpace Genomics clinical informatics platform. A partnership withIBM (NYSE:IBM) to integrate IBM’s artificial intelligence system Watson for Genomics into Illumina’s BaseSpace sequence hub and tumor sequencing process.
What management had to say
Illumina’s CEO, Frank de Souza, was more cheerful than he was in the third quarter. “We ended 2016 on a stronger note than we anticipated, with robust performance across sequencing consumables and microarrays,” he said, adding, “We also made significant progress on key R&D programs as evidenced by the launch of NovaSeq, a brand new architecture that delivers the most powerful, flexible sequencer ever created, once again redefining the trajectory of sequencing.”
- [By Benzinga News Desk]
Gold and diamond companies including Berkshire Hathaway’s Richline Group Inc joined with IBM (NYSE: IBM) to develop blockchain technology to track the origin of jewelry and ensure it is ethically sourced, the companies said on Thursday: Link
Hot Cheap Stocks To Watch Right Now: S&P Smallcap 600(PH)
- [By Charles Mizrahi, President and CEO, Hampton Investors, Inc.]
Parker Hannifin (PH) generates strong revenue from its aerospace division, while its primary industrial segment is lagging.
Overall, we like the company’s balanced portfolio. PH had solid order rates this past year with backlog of $3.6 billion between its industrial and aerospace segments.
Hot Cheap Stocks To Watch Right Now: Compass Minerals Intl Inc(CMP)
- [By Monica Gerson]
Compass Minerals International, Inc. (NYSE: CMP) is projected to post its quarterly earnings at $1.33 per share on revenue of $347.03 million.
MKS Instruments, Inc. (NASDAQ: MKSI) is estimated to post its quarterly earnings at $0.33 per share on revenue of $177.19 million.
Hot Cheap Stocks To Watch Right Now: USG Corporation(USG)
- [By Jon C. Ogg]
USG Corp. (NYSE: USG) was reiterated as Hold but the price target was raised to $35 from $29 (versus a $34.23 close) at Jefferies.
Thursday’s top analyst upgrades and downgradesincluded Biogen, Goldcorp, GoPro, Oracle, Sirius XM, Tyson Foods, Ciena and many more.
- [By Jordan Wathen]
As USG Corporation (NYSE:USG) drags its feet on an offer to sell the company for $42 per share, Berkshire intends to use its 30.8% ownership stake to motivate its top brass to make a deal. Berkshire told Bloomberg it intends to vote its shares against USG’s board members who are up for re-election at this year’s annual meeting, a clear message that Buffett is ready to cash in, even if USG’s management and board are not.
- [By The Ticker Tape]
Homebuilders like Lennar, PulteGroup, Inc. (NYSE: PHM), and D.R. Horton, Inc. (NYSE: DHI) could benefit from a strengthening housing recovery. If you’re bullish on housing, you might want to take a step back and think about other companies in that space. Home improvement stores like Home Depot Inc (NYSE: HD) and Lowe's Companies, Inc. (NYSE: LOW) could get a boost as well as companies that supply products for new homes like Whirlpool Corporation (NYSE: WHR) and USG Corporation(NYSE: USG).