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The market is tentatively creeping upwards, even as the broader financial prognosis is uncertain. There are still opportunities to be had, and many investors are looking for stocks valued at bargain prices. The following top two value stocks show signs of optimism.
Top Value Stocks in September 2020
Looking at stocks for the long-term, perhaps in the span of 1 to 3 years, things begin to change. Most government and analyst projections indicate that there will be an uptick in economic activity and growth from 2021. Until then, the situation is a little more hit-and-miss.
While growth stocks have many differences from value stocks, a lot of investors prefer value stocks due to their high potential. Even in a timeframe of 12 months, there are value stocks in certain industries that hold good prospects.
Earnings and revenue outlook support an optimistic trend, and there is definitely a chance for investors to get in on a good deal on some stocks. Using fundamental analysis to discover stocks below their valuation is the key.
In this post, we will examine two top value stocks, accessible through the leading online stock trading platforms, that appear to be looking good for the next 12 months. Considerations include price performance, the numbers backing growth, and the potential they have across the timeframe.
Specifically, we will look at two stocks, Freeline Therapeutics (FRLN) and Cloudera Inc. (CLDR), and how they might be beneficial to investors’ portfolios.
Two Value Stocks Worth Looking Into
1. Freeline Therapeutics (NASDAQ:FRLN)
Freeline Therapeutics is a biotechnology company that researches liver-focused gene therapies, primarily for bleeding disorders. Its leading program is a gene therapy solution to treat haemophilia B, among others.
The company was founded in 2015, with the IPO organized on August 7. While it is currently below its listing price of $18 at $17.14, prospects look good for the cutting edge solutions it is developing. Multiple analysts see a lot of untapped potential in its haemophilia B treatment program.
Details of the gene therapy program show its promise and sales potential. Some analysts have estimated it as being capable of bringing in sales of between $500 million to $1 billion. Multiple entities have rated Freeline Therapeutics as a buy in the past few weeks, with a target price of around $28.
Cloudera Inc. is a cloud-based data engineering, data warehousing, machine learning, and analytics company based in the United States. The company offers several products in the aforementioned domains, with a year-over-year growth of 11% in a Q4 2020 fiscal year report. It also provides on-premises solutions.
Cloudera has experienced a notable price increase over Q2 2020, though its price since the IPO date of April 28, 2017, has been up and down. The question is whether it is above or below its intrinsic value, and the numbers seem to indicate that it is indeed undervalued.
The proof is definitely in the pudding — Cloudera has surged from $4 levels during the stock market crash of March to a current price of $11.08. It also beat revenue and earnings per share expectations. Compare the latest EPS of 0.1 to that of the same period last year, where it was at a loss of $0.02 per share. There is room yet for Cloudera to grow, even if it is flying high already.
The best investors know that uncertain times are when they can latch onto the best value stocks at a bargain price and make a profit from there. Such stocks exist in the market right now, and it behoves the rational investor to set the time aside to examine these stocks.
By no means are these two stocks the only potential profit-makers in the market, but the technicals point toward growth. Whether it’s a volatile or stable period, the answers lie in the numbers. For Freeline and Cloudera, the numbers look hopeful going into the near future.
Do you have any stock recommendations of your own? What do you think of the short to medium-term future of the stock market? Let us know in the comments below.