Amidst the uncertainty, setbacks in the worldwide rollout of coronavirus vaccines, the progressing economic crisis caused by the pandemic, and a new administration in the US, there’s a mine of confusion on the stock markets.
Nevertheless, in the last six months, the S&P 500 has grown extensively, and 2021 is expected to bring some juicy returns. If capital gains are what you’re up to in your next investment, consider buying some of the most undervalued stocks (trading at a market price below what they are worth).
While there’s no guarantee that the market will soar, we created a list of the most undervalued stocks in the market, which should eventually move towards their actual values in 2021.
TOP 10 OF MOST UNDERVALUED STOCKS TO BUY IN 2021
1. Amazon (NASDAQ: AMZN Stock)
Amazon is an excellent example of what real growth potential looks like today. It was among the most undervalued stocks in 2017 but has already gained over 170% growing from $1848 to $3183 per share.
During the Covid-19 crisis, Amazon saw its revenue rise by 35% in the first three quarters of 2020 as consumers preferred online shopping to reduce infection risk. In Q3 2020, Amazon recorded $96 billion in revenue, and in 2021 Amazon’s revenues are expected to grow further to $435.3 billion.
That’s why even if Amazon was one of the most undervalued stocks in 2017, with +22.01% and low +4,3%, it’s still an ideal zero risk pick-up for your portfolio in 2021.
2. Barrick Gold (NYSE: GOLD Stock)
Alarming expectations of a global recession following the outbreak of Covid-19 have led to a sharp rise of interest in the Barrick Gold mining operator.
Last year its share prices rallied from $16 to $25, making it one of the most undervalued stocks of 2020.
Due to unsetting pandemic news, low-interest rates, a weak dollar, and growing demand for physical gold from emerging markets, Barrick Gold has excellent chances to become one of the most undervalued stocks second year in a row with an over 30% rally from its current level.
3. Zomedica Corp (NYSEMKT: ZOM Stock)
A recent YouTube video by Tiger King star Carole Baskin made a little-known Michigan-based Zomedica company that focuses on revolutionizing pet care and became a hot, undervalued stock today.
As it later turned out, the endorsement was prepaid buy a fan for $299, but that doesn’t matter now as ZOM stock has gained over 2,600% in just three months since November.
On February the 12th, Vanguard Group Inc reported a 79.47% increase in ownership of ZOM, effectively changing its value of 276.05% during the quarter.
In March 2021, Zomedica plans to start commercializing its Truforma platform, and many investors are thinking about getting on this pet care play with forecasts +44.53% increase in median stock prices.
Today ZOM stock is traded at around $1.90 per share, and most institutional buyers will not even look at a ticker until it’s above $5, but it’s still one of the most undervalued stocks right now.
4. Johnson & Johnson (NYSE: JNJ Stock)
Yes, J&J may seem like a dull blue chip, but it might be one of the most lucrative undervalued stocks today.
Johnson & Johnson’s share price is up a modest 7% over the past year, but 2021 looks like it might be an even better year for the pharmaceutical giant.
According to analysts’ forecasts, if Johnson & Johnson’s one-dose Covid-19 vaccine will be successful, it’s the stock price might gain +21,8% up to $201 per share.
But even if the vaccine fails, J&J is a massive company with a diversified income stream and will be able to maintain +12.14% growth in 2021 just from oncology drugs.
Investors awaiting catapulting growth aren’t likely to discover it in Johnson & Johnson, but if you’re looking for steady returns, JNJ is the stock for you.
5. Athersys Inc. (NASDAQ: ATHX Stock)
Athersys, Inc. is a late-stage international biotechnology company focused on regenerative medicine, primarily stem-cell therapy. It is a biotechnology company focused on regenerative medicine and numerous cell therapy products (in different clinical study phases) to treat patients with neurological, inflammatory, and immune diseases.
Their most advanced program is a Phase 3 trial for acute respiratory distress syndrome, induced by COVID-19 turns Athersys stock into a risky but promising financial position.
It would require successful commercialization. However, a quick valuation using industry-standard P/E multiples and analyst EPS targets shows a potential of triple-digit upside by 2025 and a $37 price per share.
With a low stock price of $2.71, the upside is existent if Athersys returns to industry multiples. And according to the median forecasts for 2021, its share price might show 121.40%.
6. New York Mortgage Trust Inc (NASDAQ: NYMT Stock)
This real estate investment trust has an established record of outstripping earnings estimates, notably when looking at the previous two reports. The company exhibits an average miracle of 103.33% rise in stock prices for the past two quarters.
New York Mortgage Trust was expected to post earnings of $0.03 per share for the previous quarter, but it produced $0.08, becoming one of the most profitable undervalued stocks with 166.67%.
7. International Business Machines Corp (NYSE: IBM Stock)
Although a 6% dip in IBM’s revenue bringing its share price back to March 2019 lows should have deterred investors from throwing their support behind IBM, its stock shows excellent prospects in 2021.
IBM reported some poor quarterly results with the recent transition to cloud solutions. Still, considering the work-from-home trend, the company gets a $1 trillion market opportunity to grow in the coming years.
Given this, IBM remains one of the most appealing undervalued stocks on the market right now. Get behind these stocks before prices go higher.
8. WAITR (NASDAQ: WTRH Stock)
When Waitr was founded in 2013, the online takeaway industry did not exist in the US. But global shutdowns, preventing restaurants from serving diners at their premises, have skyrocketed demand in the food delivery market.
With approximately 18,000 restaurant partners in 640 cities in the US, WAITR has a possible upside of 59.93% from the stock’s current price of $3.96, according to several Wall Street analysts’ forecasts.
Following the further expansion of the delivery market in 2021, WTRH stock price is expected to rise by 77.22%, making it one of the most worthwhile undervalued stocks today. There are currently one hold rating and three buy ratings for the stock, resulting in a consensus rating of “Buy.”
9. Ford Motor Co (NYSE: F Stock)
Despite the loss in the war with General Motors (NYSE: GM), Ford is still in a great position and primed for a major comeback this year.
In 2019, Ford announced a minority stake in Rivian, the electric truck start-up worth $28 billion. Although the company is yet to generate sales, its first vehicle is expected to come out later this year.
Adding to its partnership with Rivian, Ford is also forecasted to develop a line of electric vehicles in-house. In 2020, the automaker started distributing its Mustang-Mach E, and deliveries of the electric F-150 truck will begin in 2021.
With a market cap of just $45 million with free-cash-flow (FCF) of $3 billion, Ford is among the top undervalued stocks in the market.
10. Inpixon (NASDAQ: INPX Stock)
The name Inpixon used to be known only among the insiders. On February the 12th, the company announced its deal with Unitronic to provide CO2 Sensors that help identify COVID-19 infection risk. And in just three days, Inpixon’s stock price gained 15%, with 15,000,000 shares sold for $30M in the direct offering.
Headquartered in Palo Alto, Inpixon provides big data analytics and location-based products and related services worldwide. The company offers dozens of sensors and cloud-based applications for in-home and business security, as well as different customer tracking systems for shopping malls, corporate offices, and healthcare facilities, among others.
Despite the trending idea that “the 9-to-5 workday is dead‘ if Inpixon’s CO2 sensor modules and other solutions will help organizations address pandemic-related challenges and reclaim their workplaces, its stock has a potential of a 609,037.06% increase from the last price of $1.97.
BEST UNDERVALUED STOCKS. OVERALL
It looks like in 2021 the stock market will be a bull cycle, but there are still plenty of stocks trading below their value.
We have given some insights for investors looking for a value play about the top undervalued stocks, but there are dozens more to find, and now it is for you to decide which are the best stocks to buy.
Finding undervalued stocks
It may be tempting to dive into stock play, especially after GameStop’s’ frenzy’ headlines last month proclaiming enormous gains for investors. But finding undervalued stock might be quite hard for inexperienced investors.
To navigate the market and find the best-undervalued stocks check the latest news on some of the established media for investors.
And once again – approach your stock moves with extreme caution.