Yesterday, August 20, 2022, Dow Jones was trading at ~33,706, the S&P 500 at ~
4,228, and Nasdaq at ~12,705. Major stock indices are in the red, but the keen stock investor is asking: “what are the best recommended stocks to buy?”
We did some research and found 5 undervalued stocks that Wall Street is bullish on. Further, these are all issued by stable and profitable companies.
Note: Make sure that you do your own due diligence before you buy any of the following stocks mentioned.
Let’s dive in…
1. Horizon Therapeutics PLC (NASDAQ: HZNP)
Business
Horizon Therapeutics, founded in 2005 and is headquartered in Dublin, Ireland, is a drug manufacturer focused on rare autoimmune inflammatory diseases with severe impacts.
The company operates through 2 segments:
- Orphan (marketing KRYSTEXXA, QUINSAIR, UPLIZNA, TEPEZZA, PROCYSBI, BUPHENYL, RAVICTI, and ACTIMMUNE)
- Inflammation (marketing RAYOS, DUEXIS, PENNSAID 2%, and VIMOVO)
Forecast
Based on the 14 analysts’ 12-month median price target of $99.5 and the stock’s trading price, HZNP now has a 64.63% upside. The highest price target is $144 which represents a 138.25% upside and the lowest is $71 which represents a 17.47% upside.
Fundamentals
| P/E ratio | 19.37x |
| P/B ratio | 2.97x |
| ROE (Last Year) | 11.44% |
| Revenue Growth (YoY) | 46.63% |
| EPS Growth (YoY) | 25.41% |
| Current Ratio | 3.16x |
| Interest Coverage | 6.70x |
| D/E ratio | 0.86x |
Source: HZNP Annual Report
2. Celanese Corp (NYSE: CE)
Business
Celanese, founded in 1918 and headquartered in Irving, Texas, is a global market leader in the production of acetic acid and its downstream derivative chemicals.
In addition, the company produces cellulose derivatives used in cigarette filters, as well as specialty polymers used in the electronics, consumer end, automotive, and medical markets.
The company operates the business through its 3 segments:
- Engineered Materials (developing, producing, and supplying specialty polymers)
- Acetate Tow (providing acetate tows and flakes)
- Acetyl Chain (producing and supplying acetyl products)
Forecast
Based on the 21 analysts’ 12-month median price target of $150 and the stock’s trading price, CE now has a 30.79% upside. The highest price target is $180 which represents a 56.94% upside and the lowest is $105 which represents a 8.45% downside.
Fundamentals
| P/E ratio | 6.35x |
| P/B ratio | 2.74x |
| ROE (Last Year) | 41.79% |
| Revenue Growth (YoY) | 50.96% |
| Current Ratio | 1.52x |
| Interest Coverage | 24.15x |
| D/E ratio | 1.64x |
Source: CE Annual Report
3. Avient Corp (NYSE: AVNT)
Business
Avient Corp, founded in 1885 and headquartered in Avon Lake, Ohio, is a manufacturer and seller of a variety of plastic-based and chemical products to processors of plastics and designers.
The firm does business through three segments:
- Specialty Engineered Materials (providing specialty polymer services, formulations, and solutions)
- Distribution (distributing ~4,000 grades of commodity grade engineering resins to custom extruders and injection molders)
- Color, Additives, & Ink (offering additive concentrates and specialized color in solid and liquid form for dispersions for thermosets, thermoplastics, and specialty inks)
Forecast
Based on the 10 analysts’ 12-month median price target of $57 and the stock’s trading price, AVNT now has a 19.70% upside. The highest price target is $70 which represents a 47% upside and the lowest is $50 which represents a 5% upside.
Fundamentals
| P/E ratio | 17.38x |
| P/B ratio | 2.42x |
| ROE (Last Year) | 12.88% |
| Revenue Growth (YoY) | 48.63% |
| EPS Growth (YoY) | 73.10% |
| Current Ratio | 1.94x |
| Interest Coverage | 5.06x |
| D/E ratio | 1.79x |
Source: AVNT Annual Report
4. Cognizant Technology Solutions Corp (NASDAQ: CTSH)
Business
Cognizant, founded in 1994 and headquartered in Teaneck, New Jersey, is a global professional services company, offering outsourcing and consulting services to some of the largest corporations in the world, spanning the media and communications, healthcare, financial services, consumer products, and natural resources industries.
The company operates its business through four segments:
- Financial Services
- Healthcare
- Products and Resources
- Communications, Media and Technology
Forecast
Based on the 23 analysts’ 12-month median price target of $78 and the stock’s trading price, CTSH now has a 13.7% upside. The highest price target is $98 which represents a 42.86% upside and the lowest is $55 which represents a 19.83% downside.
Fundamentals
| P/E ratio | 16.04x |
| P/B ratio | 2.99x |
| ROE (Last Year) | 17.82% |
| Revenue Growth (YoY) | 11.14% |
| EPS Growth (YoY) | 57.59% |
| Current Ratio | 2.08x |
| Interest Coverage | 317.33x |
| D/E ratio | 0.49x |
Source: CTSH Annual Report
5. LyondellBasell Industries NV (NYSE: LYB)
Business
LyondellBasell Industries, incorporated in 2009 and headquartered in Houston, Texas, is a chemical company with global operations.
It does business through six segments:
- Intermediates and Derivatives (I&D)
- Olefins and Polyolefins-Americas (O&P-Americas)
- Advanced Polymer Solutions (APS)
- Olefins and Polyolefins-Europe, Asia, International (O&P-EAI)
- Refining
- Technology
The company is the world’s largest producer of polypropylene and a major producer of polyethylene.
Forecast
Based on the 22 analysts’ 12-month median price target of $100.5 and the stock’s trading price, LYB now has a 12.61% upside. The highest price target is $120 which represents a 34.45% upside and the lowest is $70 which represents a 21.57% downside.
Fundamentals
| P/E ratio | 5.43x |
| P/B ratio | 2.45x |
| ROE (Last Year) | 47.31% |
| Revenue Growth (YoY) | 66.37% |
| EPS Growth (YoY) | 295.04% |
| Current Ratio | 1.69x |
| Interest Coverage | 13.05x |
| D/E ratio | 2.09x |
Source: LYB Annual Report
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