Inherently, investors gravitate toward strong buy value stocks, in much the same way that audience members of a horror film might grip their armrests. As humans, we’re basically hardwired – especially in the modern age – to respond positively to discounts. Unless we’re talking about real estate or rare valuable items, most folks shun bidding wars.
But before you load up on value stocks, you may want to consider an even more attractive category: fundamentally discounted enterprises – typically against earnings or sales metrics – that Wall Street analysts endorse. That’s right, every idea on this list featured a strong buy consensus view among top market experts prior to the Aug. 2 opening bell.
While it’s always risky going against the grain with discounted securities, these top value stocks get the nod of approval from those whose job it is to comprehensively research compelling market ideas. On that note, below are the bargain names that can go places.
Patrick Industries (PATK)
A major manufacturer and distributor of component products and building products, Patrick Industries (NASDAQ:PATK) serves the recreational vehicle, marine, manufactured housing, and residential housing markets, among several others. Although a boring name among strong buy value stocks, its wide relevance should entice forward-thinking investors. Since the beginning of this year, PATK gained nearly 40% of its equity value, an impressive haul.
Even better, according to Wall Street analysts, PATK benefits from a strong buy consensus view. This assessment breaks down as four buys, one hold, and significantly zero sell ratings. Overall, the experts’ average price target lands at $94.20, implying almost 11% upside potential. Further, the high-side price target comes in at $105, implying over 23% growth.
Lastly, Patrick delivers the goods on the financial front. Operationally, its three-year revenue growth rate (per-share basis) lands at 25.7%, above 91.9% of its peers. Yet PATK trades at a trailing-year sales multiple of 0.5, lower than 70.8% of sector rivals. Thus, it’s one of the top value stocks to consider.
International Money Express (IMXI)
Admittedly a tough idea for conservative investors, those who seek to load up on value stocks may nevertheless find intrigue with International Money Express (NASDAQ:IMXI). Per its public profile, International Money provides a platform for the electronic movement of money and data from the U.S. to Latin America and the Caribbean. It offers wire transfers, telewire, money orders, and other processing services to customers.
While the company presents a risky profile, IMXI up until the opening bell of the Aug. 2 session ranked among the strong buy value stocks. However, thanks to a downgrade to “hold” by JMP Securities analyst David Scharf, IMXI is now technically a moderate buy. Still, the average expert price target for shares still stands at a lofty $29.50, implying 52% upside potential.
On the financials, International Money prints a three-year revenue growth rate of 18.5%, above 71.78% of sector rivals. Also, IMXI trades at a forward multiple of 9.36, much lower than the sector median stat of 28.1x.
Titan Machinery (TITN)
Headquartered in West Fargo, North Dakota, Titan Machinery (NASDAQ:TITN) is one of the largest U.S. dealers of agricultural and construction equipment. Its network of full-service dealer locations extends throughout much of this country. As well, Titan features European stores located in Bulgaria, Germany, Romania, Serbia, and Ukraine. While geopolitics presents a rough situation for TITN, it also cynically imbues the underlying narrative with indelible relevance.
Perhaps not surprisingly, TITN ranks among the strong buy value stocks. Among six analysts, five of them rate Titan a buy while one rates it a hold. Conspicuously, the five most recent ratings are all buys. Overall, the experts’ average price target lands at $41.60, implying nearly 34% upside potential. The high-side target is $50, implying almost 61% growth.
For those that want to load up on value stocks on the cheap, it’s difficult to overlook Titan. Its three-year revenue growth rate impresses at 18.4%. Nevertheless, TITN trades at a trailing-year sales multiple of only 0.31, favorably below nearly 71% of its rivals.
Gray Television (GTN)
Headquartered in Atlanta, Georgia, Gray Television (NYSE:GTN) represents the largest owner of top-rated local television stations and digital assets in the U.S., per its corporate profile. It goes on to state that Gray currently owns and/or operates television stations and leading digital properties in 94 television markets that collectively reach approximately 24% of domestic television households.
Still, it’s a risky idea among speculative top value stocks. In the trailing one-year period, GTN lost 54% of its equity value. Right there, most investors will be tempted to run and I wouldn’t blame them. However, GTN also classifies as one of the strong buy value stocks, enjoying a unanimous optimistic rating among three experts. Further, their average price target stands at $16.33, implying nearly 82% upside potential.
Interestingly, Gray prints a three-year revenue growth rate of 23% and a trailing-year net margin of nearly 10%. Both stats are impressive. As well, GTN trades at 1.44x free cash flow, which sits on a subterranean level. Again, it’s a tough call but the experts do like it.
Catalyst Pharmaceuticals (CPRX)
A commercial-stage biopharmaceutical firm, Catalyst Pharmaceuticals (NASDAQ:CPRX) focuses on developing and commercializing innovative therapies for people with rare debilitating, chronic neuromuscular and neurological diseases. These conditions include Lambert-Eaton myasthenic syndrome (LEMS), anti-MuSK antibody-positive myasthenia gravis (MuSK-MG), and other neurological and neuromuscular disorders. Although scientifically compelling, Catalyst presents high risks, with shares down more than 25% since the start of the year.
Despite the obvious market concerns, CPRX rings up the register as one of the strong buy value stocks. Per TipRanks, five analysts presently cover Catalyst, with four of them rating shares a buy. The worst rating is a hold. Overall, the experts’ average price target comes to $22.40, implying over 66% upside potential. Further, the high-side target clocks in at $25, implying almost 86% growth.
Compared to other speculative biotech firms, Catalyst offers a relatively sensible financial canvas. For example, it enjoys a robust balance sheet, backed by a cash-to-debt ratio of nearly 39X. Also, it features solid revenue growth and high-profit margins. Lastly, CPRX is undervalued at a forward multiple of less than 12.
ACM Research (ACMR)
A specialist in the development, manufacturing, and sales of semiconductor process equipment, ACM Research (NASDAQ:ACMR) is an important background player in the broader tech industry. While ACM probably doesn’t rate as a household name for most consumers, the company’s processes are critical to advanced semiconductor device manufacturing. So, indirectly speaking, ACM likely impacts our lives significantly.
To be sure, ACMR represents a mixed bag. Since the start of this year, shares gained nearly 25% of equity value. While a reasonable performance, over the past 365 days, ACMR gave up almost 31%. Still, analysts are more than impressed with the enterprise. Not only does it rank among strong buy value stocks, but it’s also a unanimous assessment among six experts. Moreover, their average price target lands at $20.38, implying 70% upside potential.
Financially, ACM benefits from a stable balance sheet, strong top-line expansion, and decent profit margins. Despite these attributes, the market prices ACMR at a forward multiple of only 12.15, below 82% of the competition. Therefore, if you want to load up on value stocks at a heavy discount, ACMR could be a viable idea.
Harmony Biosciences (HRMY)
Another enticing but risky biotech play, Harmony Biosciences (NASDAQ:HRMY) focuses on the research, drug development, and treatment for neurologic disorder of sleep-wake state instability. According to The Insight Partners, the global market for the treatment of neurological disorders related to sleep disruption may hit a valuation of nearly $4.54 billion in 2027. That’s up from almost $2.03 billion in 2018.
Still, HRMY represents one of the riskiest value plays available. Since the start of the year, shares fell almost 39%. That said, analysts peg HRMY as one of the strong buy value stocks to consider. Right now, the assessment breaks down as four buys, one hold and zero sells. Also, the experts’ average price target stands at $59.80, implying nearly 84% upside potential.
Regarding the financials, Harmony offers some tempting stats. For example, the biotech’s Altman Z-Score comes in at 5.85, implying a very low risk of imminent bankruptcy. Additionally, the market prices shares at a forward multiple of 14.64. As a discount to projected earnings, Harmony ranks better than 72.41% of its peers.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
