Three low valuation stocks to watch

At a time when stock markets are often overheated and share prices are often overvalued, it can be difficult to find investment opportunities that offer real value. The value investing strategy advocated by renowned investors such as Warren Buffett focuses on finding stocks that are trading below their intrinsic value.

In this article, we look at three stocks that currently appear to be good investments due to their low valuations, even though the markets are currently prone to volatile movements. However, be careful to do your own analysis, these are stocks selected by analysts.

Viatris $VTRS

VTRS

Viatris

VTRS
$11.90 $0.00 +0.00%

Viatris is a global healthcare company formed from the merger of Mylan and Upjohn, a former division of Pfizer. The company specializes in generic and branded drugs. Viatris stock trades at a forward price-to-earnings (P/E) ratio of just 4.33, well below the industry average of 17. Despite this low valuation, Viatris has struggled with the problems associated with pricing pressures in generic drugs.

On the other hand, Viatris offers an attractive dividend yield of 4.12%. However, Wall Street expects revenue to decline 1.5% in 2025 due to the continued price decline in the generic drug market. The investment opportunity at Viatris lies in its ability to optimize its product portfolio and create value through its innovative portfolio of drugs. If the company can get off the ground, it has the potential to deliver strong returns in the coming years.

Ford Motor Company $F-0.5%

F

Ford

F
$10.92 -$0.06 -0.55%

Ford Motor Company is a well-known brand in the automotive industry that is currently undergoing a significant transformation toward electric vehicles (EVs). Ford shares trade at a forward P/E ratio of 5.39 and the dividend yield is an outstanding 5.71%. However, the automaker is not currently experiencing significant growth. Wall Street expectations suggest modest revenue growth of 1.1% in 2025, reflecting a difficult transition to EVs and recent manufacturing issues.

Ford is currently on a path to regain its position. Its aggressive transition to electric vehicles and focus on the most profitable segments should bear fruit over the next 10 to 20 years.

Ally Financial $ALLY+2.7%

ALLY
$34.96 $0.91 +2.67%

Ally Financial is a digital financial service that offers a wide range of products including auto financing, online banking and investment services. Ally shares trade at a forward P/E ratio of 13.4, which is below the average for the financial services sector. Its dividend yield is a healthy 2.88%. Ally also expects strong revenue growth of 12.7% in 2025, although the specific reason for this double-digit outlook is not entirely clear.

The investment case for Ally lies in its digital approach, which allows for lower overhead costs compared to traditional banks. A strong position in auto financing and a growing deposit base provide a solid foundation for future growth. However, an economic downturn could impact lending performance, particularly in the auto finance segment. Thus, this finance title is not for short-term speculators, but should appeal to investors who are willing to hold their investments over several business cycles.

Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always conduct a thorough analysis of your own.

Source..

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