Investor Place·2024-06-06 17:01Core Viewpoint - Investors seeking enhanced returns should consider undervalued long-term stocks rather than following consensus opinions, as these stocks can provide predictability and potential for greater returns over time [1]. Group 1: Deere (DE) - Deere operates in the farm and heavy construction machinery sector, manufacturing and distributing agricultural equipment globally [2]. - Analysts rate Deere shares as a consensus moderate buy with an average price target of $424.07, indicating an upside of over 14% from current levels [2]. - In the trailing 12 months, Deere reported a net income of $9.47 billion and earnings per share (EPS) of $33.20, with total revenue of $58.6 billion [2]. - For fiscal 2024, EPS is projected at $25.40 on sales of $45.56 billion, down from last year's EPS of $34.69 on sales of $55.56 billion [3]. - Currently, Deere trades at 11.18X trailing-year earnings and 1.83X trailing-year sales, down from 14.05X and 2.11X a year ago, suggesting it is undervalued [3]. Group 2: TotalEnergies (TTE) - TotalEnergies is a multi-energy firm based in France, primarily focused on oil production and marketing, while also engaging in biofuels, natural gas, renewable energy, and electricity generation [5]. - The company serves various regions including Europe, North America, and Africa, and is positioned to benefit from the ongoing reliance on oil despite the shift towards electric vehicles [5]. - For fiscal 2024, analysts expect EPS to reach $9.29 on sales of $244.24 billion, compared to last year's EPS of $9.40 on revenue of $237.13 billion [6]. - TotalEnergies currently trades at 7.95X trailing-year earnings and 0.8X trailing-year sales, indicating potential undervaluation given the geopolitical backdrop and supply chain concerns [6]. Group 3: Baidu (BIDU) - Baidu, headquartered in Beijing, China, operates in the internet content and information sector, often referred to as the "Google of China" [7]. - Despite recent disappointing market performance, Baidu remains a top candidate for undervalued long-term stocks due to the vast size of China's consumer economy [7]. - In the trailing 12 months, Baidu reported a net income of $19.22 billion, with EPS of $6.48 and total revenue of $134.97 billion [8]. - For the end of the fiscal year, EPS is projected at $11.40 on sales of $19.76 billion, reflecting a mixed outlook [8]. - Baidu's trailing-year earnings and sales metrics have decreased to 15.04X and 1.77X, respectively, down from 25.7X and 2.78X a year ago, indicating it may be undervalued [8].