7 more recommendations from U.S. News Invested ...
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TODAY'S FEATURED STOCK STORY The S&P 500 got off to a hot start to 2023, but it has lost ground in recent weeks amid growing macroeconomic uncertainty. Persistently high inflation, rising interest rates and concerns about a potential U.S. recession have weighed on high-risk stocks. But broad market weakness has also hurt the share prices of many high-quality value stocks, as well.
Fortunately for investors, that weakness has also created some compelling value opportunities. If the Federal Reserve can avoid a hard landing for the economy, these value investing opportunities likely won't last for long. Here are seven undervalued stocks to buy with forward earnings multiples of less than 15, according to CFRA Research:
JPMorgan Chase & Co. (ticker: JPM). JPMorgan Chase is one of the world's largest banks and financial services companies, with about $3.8 trillion in assets. Rising interest rates are typically good news for bank net interest margins, but only if the U.S. can avoid a severe recession.
Analyst Kenneth Leon says JPMorgan should have no trouble navigating a shallow recession in 2023 and should be well positioned for the next economic expansion period. Leon is bullish on the bank's investments in growth-driving technology and consumer banking applications. CFRA has a "buy" rating and $156 price target for JPM stock, which closed at $140.93 on Feb. 24.
Bank of America Corp. (BAC). Bank of America is one of the largest U.S. banks and wealth management services providers. Leon says the company is firing on all cylinders ahead of what he anticipates will be a healthy rebound in lending and investment banking in the second half of 2023.
Higher interest rates will boost Bank of America's net interest income, and Leon says the company's leading retail deposit market share among consumers and small businesses creates value for investors. He projects 8.5% revenue growth in 2023. CFRA has a "buy" rating and $43 price target for BAC stock, which closed at $34.21 on Feb. 24.
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