As the market continues to trade near record highs, investors are struggling to find good values in the current market. The big sexy stocks have, for the most part, enjoyed big gains, and while they tend to capture the lion’s share of market coverage, there are plenty of boring, non-sexy stocks out there with a lot of upside potential.
When looking for stocks with significant upside potential, a great place to start looking is for stocks that are trading well below their average analyst price target. Analysts are not always right, but when you look at average price targets, you get a clearer picture of where the market experts believe a stock should be trading to be reasonably priced.
While a bullish price target is a good thing to see, you have to also do additional homework. One thing to research is a stock’s current valuation, and the underlying company’s forecast earnings growth.
If we can screen stocks that are trading well below their average price target, have reasonable valuations, and are forecast to enjoy strong earnings growth moving forward, we can reasonably assume that the stock has significant upside potential.
Boring stocks sometimes get overlooked because they do not get a lot of media attention, but there are plenty of non-sexy stocks in the stock universe that have plenty of upside potential.
Let’s take a closer look at five boring stocks you may not hear a lot about, but have the significant upside potential.