Group 1: Verizon Communications - Verizon is not positioned as a growth stock due to the saturation of the U.S. wireless telecom market [3][4] - The company has a strong dividend yield of 6.6%, having raised its dividend for 18 consecutive years [5][7] - Verizon shares are trading at less than 10 times the expected per-share earnings of $4.69 for the year, limiting downside risk [8] Group 2: Target Corporation - Target has faced challenges in recent years, with same-store sales growth declining due to economic pressures and competition from Walmart [9][10] - The stock is currently trading at a forward-looking price/earnings ratio of 13, the lowest in eight years, and offers a dividend yield of 4.4% [10][11] - Target is implementing turnaround initiatives expected to generate an additional $15 billion in annual revenue by 2030, although recent sales data indicates ongoing challenges [12][13][14] Group 3: Berkshire Hathaway - Berkshire Hathaway, a conglomerate led by Warren Buffett, is considered undervalued with a projected price/earnings ratio of about 11 based on its net income of $97.1 billion [15][17] - The company’s portfolio includes value stocks and cash-generating businesses, contributing to its low earnings multiple [18] - Compared to average valuations of other value stocks, Berkshire's valuation remains significantly lower, with the Vanguard Value ETF trading at a trailing P/E of just under 20 [19]
3 Stocks Too Cheap to Ignore at These Prices
The Motley Fool·2025-07-25 09:54