4 Stocks That Are Looking Like A Great Value Right Now
Portfolio Pulse from Cory Mitchell
Four stocks, WNS Holdings Limited (WNS), PayPal Holdings, Inc. (PYPL), Centene Corporation (CNC), and Perficient, Inc. (PRFT), are highlighted as great value investments with potential for over 100% upside by 2025 based on their current P/E ratios, forward P/E, and projected earnings. Each company is trading below its historical P/E levels, suggesting significant growth potential if they achieve their expected earnings and their P/E ratios normalize.

May 03, 2024 | 1:28 pm
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POSITIVE IMPACT
Centene Corporation, with a P/E of 14.7 and a forward P/E of 9.8, often reaches a P/E of 20 or higher. With projected 2025 earnings of $7.57, the stock could reach near $150, from $74.33.
CNC's current and forward P/E ratios are below its historical norm. If it achieves its projected earnings and the P/E ratio normalizes to 20, the stock price could see significant growth, reflecting its potential undervaluation.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Perficient, Inc. trades at a P/E of 14.7 and a forward P/E of 9.8, with a common P/E of 20 to 25. Expected earnings of $4.54 by 2025 suggest a price of $90 to $110, up from $48.85.
PRFT's trading at a discount to its historical P/E range with strong earnings growth expected by 2025. This discrepancy indicates a potential for significant price appreciation if the company meets its earnings projections and P/E normalizes.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
PayPal Holdings, Inc. has a P/E of 16.9 and a forward P/E of 12, below its usual P/E above 25. Analysts expect EPS of $5.6 by 2025, indicating a potential price of $140, up from $66.98.
PYPL's current trading P/E is significantly lower than its historical average. With projected EPS growth, achieving a P/E of 25 by 2025 could nearly double its stock price, assuming market conditions and company performance align with forecasts.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
WNS Holdings Limited is trading at a P/E of 16.1 with a forward P/E of 9.9, significantly below its common P/E of 25. With projected earnings of $4.57 for 2025, the stock has a potential target price of $114, compared to its current price of $45.23.
WNS's significant discount to its historical P/E ratio combined with strong earnings projections for 2025 suggests a high potential for stock price appreciation. The analysis assumes the company will revert to its common P/E, driving the price up.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100