The stock market is off to a rocky start as we begin the new year. If you are considering shifting some of your money out of growth stocks, you are not alone. This could be a good time to establish positions in value stocks. However, identifying the perfect value stocks set to spike as we segue to the first quarter of the new year is inherently challenging…
Let’s take a look at four value stocks that have the potential to pop early in 2021: Tractor Supply Company (TSCO – Get Rating), Cisco Systems (CSCO – Get Rating), OneMain Holdings (OMF – Get Rating), and Penske Automotive Group (PAG – Get Rating).
Tractor Supply Company (TSCO – Get Rating)
Though most investors are primarily focused on growth-oriented tech stocks, value stocks such as TSCO are worthy of your consideration too. TSCO operates retail farm/ranch stores throughout the country. Ask ranchers or farmers in your area about TSCO, and you will likely be inundated with praise. Furthermore, everyday tradesmen, rural residents, and small businesses rely on TSCO for sundries related to farming and other farm/ranch-related activities.
Analysts have established an average price target of $164.75 for TSCO, indicating a potential 17% upside. Of the eight analysts who cover the stock, six advise buying, two advise holding, and none recommend selling.
The POWR Ratings reveal TSCO has an “A” grade in the Trade Grade component. The stock also has “B” grades in the Peer Grade and Buy & Hold Grade components. Of the 37 publicly traded companies in the Specialty Retailers industry, TSCO is ranked fourth.
TSCO has excelled during the pandemic, reporting quarterly net sales growth of over 30%. The company’s comparable-store sales have increased by 15%-20%. TSCO continues to open new stores even though the virus is spreading. If everything goes as planned, TSCO will open 80 additional stores in the year ahead, reaching a total of 2,000 stores, adding side-lot garden centers to some for enhanced product diversity.
Cisco Systems (CSCO – Get Rating)
CSCO, a networking business that provides services and products to a wide range of customers, is a tech stock yet also qualifies as a value stock. CSCO is expanding its horizons to network security, data centers, and beyond.
Many analysts believe CSCO is currently underpriced, establishing an average price target of $49.11, indicating a potential 12% upside. Of the 13 analysts who cover the stock…
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