Narrowing down the right stocks to buy based on multiple metrics is almost impossible without a solid methodology – which is where InvestingPro comes in. So what are the best stocks to buy now or add to your watchlist? Tsakos Energy Nav. Ltd (TNP), International Seaways Inc (INSW), Meritage Corporation (MTH), Danaos Corporation (DAC), and CVR Partners (UAN) have been suggested this month by our InvestingPro AI/Analyst hybrid.
May came and went in a flurry of volatile investor sentiment across different sectors, and now we step into June’s continued bullish terrain. The previous few months’ market successes still linger in the air and projections of a continued bullish trend persist, painting a favorable backdrop for investors seeking to position themselves strategically as we move into the very end of Q2, 2024: finding opportunities in robust companies whose shares are still undervalued.
Our Stock-Picking Methodology
These 5 stocks are our top Pro Picks for this month, taken from S&P 500-listed companies that have garnered high InvestingPro health ratings (benchmarked against more than 100 financial factors and indicators from companies in the same sector), as well as from among those trading well under our proprietary fair value estimates (based on 5 overlaid investing models) and analyst assessments.
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The term “undervalued stocks” refers to stocks that are trading at a price below their intrinsic value or growth potential. Investors often look for undervalued stocks because, over the long term, the market will likely recognize the company’s true value, leading to a rise in the stock price and providing profit opportunities.
All of these names have earned InvestingPro health scores of well above 3.00, which for the last 7 years has indicated outperformance vs. the S&P 500. A score this high points to a mix of first-rate financials: excellent earnings, cash flow, and growth vs. peers in its sector.
5 Stocks To Consider In June 2024
| Top June Stock | InvestingPro Health Score |
|---|---|
| Tsakos Energy Nav. Ltd (TNP) | 3.33 / 5 |
| International Seaways Inc (INSW) | 3.86 / 5 |
| Meritage Corporation (MTH) | 3.15 / 5 |
| Danaos Corporation (DAC) | 3.87 / 5 |
| CVR Partners (UAN) | 3.33 / 5 |
Importantly, all of these stocks are also currently undervalued per InvestingPro’s fair value calculations and favored by Wall Street analysts polled by InvestingPro. So if you’re eager to bulk up your portfolio, these overlooked powerhouse plays are all worth serious consideration.
- InvestingPro health score: 3.33 / 5.00
- InvestingPro average fair value: $42.13 / 36.4% upside
- Fair value confidence: Medium
- Industry: Energy / Oil, Gas & Consumable Fuels
As of the latest quarter, Tsakos Energy Navigation Ltd. (TNP) has a market capitalization of approximately $911.4 million. The price-to-earnings (P/E) ratio stands at 3.4, indicating a relatively low valuation compared to industry peers.
In terms of potential upside, analysts are cautiously optimistic about TNP’s future performance. Despite the inherent volatility in the shipping industry, TNP’s strategic positioning and operational efficiency contribute to an estimated 36.00% potential upside according to InvestingPro’s fair value calculations. It’s important to note that the shipping industry tends to be sensitive to global economic conditions and geopolitical events, which can impact TNP’s stock price.
In summary, Tsakos Energy Nav. Ltd’s low P/E ratio and moderate debt levels make it an intriguing opportunity for investors seeking exposure to the shipping industry. With a potential upside of 36.00% and a consistent dividend of just under 2%, TNP may just be the right stock for investors who aren’t concerned with slightly more volatile holdings in the short-term, in order to reap longer-term benefits.
International Seaways Inc (INSW):
- InvestingPro health score: 3.86 / 5.00
- InvestingPro average fair value: $91.08 / 39.8% upside
- Fair value confidence: Medium
- Industry: Energy / Oil, Gas & Consumable Fuels
As of May 28th 2024, International Seaways Inc (INSW) has a market capitalization of approximately $3.23 billion. The company’s stock price stands at $65.13. INSW’s price-to-earnings (P/E) ratio is 6.1x, indicating a potentially undervalued stock. Furthermore, the company’s return on invested capital for the last twelve months ending May 2024, was reported at 19.1%, showcasing efficient capital allocation.
Moreover, INSW’s Piotroski Score, a measure of financial strength, stands at 7, indicating robust fundamental performance. The company’s debt-to-equity ratio is 39.6%, suggesting a moderate level of leverage. Analysts have set an upside target of 39.8% for INSW, indicating the potential for substantial stock price appreciation. Their high 8.8% dividend yield is also indicative of the company’s confidence, as this is the result of 4 consecutive years of raises.
Overall, International Seaways Inc presents a compelling investment opportunity with strong financial metrics and significant potential upside, making it an attractive option for investors seeking new opportunities.
Meritage Corporation (MTH):
- InvestingPro health score: 3.15 / 5.00
- InvestingPro average fair value: $228.63 / 30.9% upside
- Fair value confidence: Medium
- Industry: Consumer Discretionary / Household Durables
International Meritage Corporation (MTH) is a company engaged in homebuilding activities in the United States. As of the last quarter, the company had a market capitalization of approximately $6.34 billion. The company currently pays a dividend of 1.7%, and its price-to-earnings (P/E) ratio stands at 8.0 based on its last twelve months of earnings. International Meritage Corporation’s financial health overall score is 3.15, indicating a robust financial position.
The company’s debt-to-equity ratio is 22.3%, reflecting a moderate level of debt. Analysts have a positive outlook for the company, with an estimated 30.9% potential upside. International Meritage Corporation’s stock exhibits moderate volatility, with a beta of 1.75.
In summary, International Meritage Corporation (MTH) presents an attractive opportunity for investors, with a solid financial position, low P/E ratio, moderate debt levels, and the potential for upside growth.
Danaos Corp (DAC):
- InvestingPro health score: 3.87 / 5.00
- InvestingPro average fair value: $130.97 / 44.6% upside
- Fair value confidence: High
- Industry: Marine Transportation
As of the last quarter, International Danaos Corp (DAC) has shown promising potential for investors. With a market capitalization of approximately $1.75 billion, Danaos Corp has been gaining attention in the maritime industry. The company’s price-to-earnings (P/E) ratio stands at 3.1, indicating an attractive valuation in comparison to industry peers. Danaos Corp has a solid financial health score of 3.87, reflecting a robust position.
In terms of dividends, Danaos Corp has not historically been a significant dividend payer, although their current yield sits at 3.53%, which they’ve paid for 4 consecutive periods. However, the company’s financials and growth prospects have been noteworthy. Analysts anticipate a positive outlook for the company’s upcoming quarterly reports, driven by the recovery in global trade and the shipping industry.
Danaos Corp’s debt levels have been relatively stable, with a debt-to-equity ratio of 13.4%. This indicates a balanced approach to capital structure and financial risk. The company’s potential upside is estimated at around 44.6%, signaling a significantly attractive opportunity for investors. Despite the inherent volatility in the shipping industry, Danaos Corp has demonstrated resilience and a potential for growth.
CVR Partners LP (UAN):
- InvestingPro health score: 3.33 / 5.00
- InvestingPro average fair value: $107.83 / 31.5% upside
- Fair value confidence: High
- Industry: Materials / Chemicals
As of the last quarter, International CVR Partners LP (UAN) has a market capitalization of approximately $886.7 million. The company’s P/E ratio stands at 10.4x, indicating a reasonable valuation in relation to its earnings.
In terms of dividends, International CVR Partners LP (UAN) has historically offered a high dividend yield, currently sitting at 9.4%, providing potential income for investors. However, it’s important to note that the specific dividend amount for the upcoming quarter should be verified closer to the dividend declaration date.
When assessing the potential upside and volatility, International CVR Partners LP (UAN) displays an interesting profile. The company’s stock exhibits a compelling potential upside of 31.5%, which investors may find appealing. However, it’s essential to recognize that with this potential upside comes a certain level of volatility, which investors should be mindful of when considering this opportunity.
Previous Investing Stock Picks for US Markets
If you’re looking for more great opportunities, here is a list of our top stock picks for previous months during 2024.
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The health scores and these stocks’ place on our opportunities list were correct at the time of the original posting month. It’s important for investors to check any updated information, which can be done at the click of a button through InvestingPro.
| Top March Stock | InvestingPro Health Score |
|---|---|
| Xpel Inc (XPEL) | 3.14 / 5 |
| Teekay Tankers (TNK) | 3.71 / 5 |
| Simply Good Foods (SMPL) | 3.02 / 5 |
| United Therapeutics Corp (UTHR) | 3.72 / 5 |
| The Andersons Inc (ANDE) | 3.31 / 5 |
| Top January Stock | InvestingPro Health Score |
|---|---|
| Teekay Tankers (TNK) | 3.81 / 5 |
| Mueller Industries (MLI) | 3.88 / 5 |
| Danaos (DAC) | 3.89 / 5 |
| Medifast (MED) | 3.30 / 5 |
| Daqo New Energy (DQ) | 3.89 / 5 |
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Past performance does not guarantee future success, and trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Trading on margin increases the financial risks. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
