These picks—Mobileye (NASDAQ:MBLY), Barrick Gold (NYSE:GOLD), Lyft (NASDAQ:LYFT), Cleveland-Cliffs (NYSE:CLF), and Snap (NYSE:SNAP)—are undervalued and offer significant upside potential, as highlighted by InvestingPro’s Fair Value Model.
With Black Friday’s focus on value, these picks align perfectly with the theme of savvy shopping—this time for your portfolio.
Mobileye, a pioneer in advanced driver-assistance systems (ADAS) and autonomous driving technologies, is transforming the automotive industry.
The global push toward vehicle safety and autonomy is accelerating demand for ADAS technology. With partnerships across major automakers and increasing regulatory requirements for safety features, Mobileye is well-positioned to dominate the self-driving revolution. Recent innovations in its next-gen chips and mapping technology further solidify its growth trajectory.
Source: InvestingPro
The InvestingPro Fair Value model suggests that the stock is substantially undervalued, making it an attractive buy at current levels. Trading at $18.03, InvestingPro estimates its fair value at $21.34, indicating a potential upside of 18.4%.
Barrick Gold, one of the largest global producers of gold and copper, remains a safe-haven investment amid market uncertainty. Persistent inflation, geopolitical tensions, and central bank gold-buying trends are driving the demand for gold as a hedge.
Additionally, Barrick’s operational efficiency, strong cash flow, and focus on sustainability in mining give it an edge over competitors, ensuring steady long-term returns.
Source: InvestingPro
The stock’s undervaluation, according to InvestingPro’s Fair Value models, indicates a compelling opportunity for investors. Trading at $17.57, its fair value price target is pegged at $21.77, offering a 23.9% upside.
Lyft, a major player in the ride-hailing industry, has been revamping its business strategy to prioritize profitability. The company is capitalizing on growing consumer demand for ride-hailing services and carpooling solutions.
Strategic partnerships, advancements in autonomous vehicle tech, and a leaner cost structure are helping the company regain momentum. Its expansion into new markets and premium services could further unlock value for shareholders.
Source: InvestingPro
Current Fair Value estimates indicate that LYFT stock is trading at a significant discount. InvestingPro’s Fair Value model predicts a potential upside of 39.9% from the current market value of $17.18. That would bring shares closer to their fair value price target of $24.04.
Cleveland-Cliffs, the largest flat-rolled steel producer in North America, is a critical supplier to the automotive and construction industries.
Infrastructure spending initiatives and the resurgence of domestic manufacturing are major growth catalysts. Cleveland-Cliffs’ vertically integrated operations provide cost advantages, allowing it to better serve automakers and contractors. Its commitment to greener steel production aligns with the push for sustainability in industrial processes.
Source: InvestingPro
The stock’s present valuation suggests it is considerably underpriced, as indicated by the InvestingPro AI models. Trading at $12.14, there is a possibility of a 42.9% increase, moving it closer to its fair value set at $17.35 per share.
Snap, the parent company of Snapchat, is a leading innovator in augmented reality (AR) and social media. Its AR-driven ad solutions are resonating with brands aiming to reach younger audiences.
The Santa Monica, California-based tech company’s focus on enhancing user engagement through new features and partnerships is paying off. As advertising budgets rebound, Snap’s innovative platform offers unique ways for businesses to connect with their target demographics, bolstering revenue growth.
Source: InvestingPro
As per the InvestingPro Fair Value model, SNAP trades at a major discount. There is potential for an 18.1% increase from its current price of $11.61, bringing it towards its fair value of $13.71 per share.
As the holiday season encourages savvy shopping, these five stocks represent outstanding opportunities for your portfolio. Whether driven by innovation, macroeconomic trends, or market-specific tailwinds, these bargains are well-positioned for long-term growth.
Whether you’re a novice investor or a seasoned trader, leveraging InvestingPro can unlock a world of investment opportunities while minimizing risks amid the challenging market backdrop.
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Disclosure: At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF, and the Invesco QQQ Trust ETF. I am also long on the Technology Select Sector SPDR ETF (NYSE:XLK).
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
This article was originally published here.
