This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

3 Sleeping Giants Ready to Bounce Higher

NEW YORK ( TheStreet) -- I've always been the type of investor who never sacrifices value for growth. While there are certainly companies such as Apple (AAPL - Get Report) and Google (GOOG) that are able to offer both qualities, sometimes investors are willing to risk too much on the promises offered by the "soup de jour" of a Chipotle (CMG) or Salesforce.com (CRM).

That's all well and good, except of course until the growth stops. Then what? We turn to the old reliable -- value.

While the word "value" does not always yield a consensus, there are always certain companies that are consistently on a short list of names where it is safe to say the price relative to its potential is likely to appreciate over time - or the stock is undervalued.

Apple is one of them. It systematically does things to widen its lead in any market it chooses. Yet, nobody has been able to comprehensively appraise the company and explain what its true value is.

Although it has received price targets as high as $1,200, the company has recently demonstrated its ceiling is really whatever it wants it to be. From the standpoint of price-to-earnings ratio it has been the cheapest stock on the market for a number of years. How else can it make sense that Facebook (FB) deserves a higher P/E? Apple should be a part of every portfolio and, for that matter, a balanced diet.

Another name that deserves consideration is Oracle (ORCL - Get Report), a company that continues to be one of the most undervalued on the market today. The company recently announced net income of $3.5 billion, or 69 cents per share, for the period ending in May. This compares favorably to what it produced last year when it earned $3.2 billion and 62 cents per share.

So I continue to wonder how is it possible that a rival such as the aforementioned Salesforce can command a forward P/E that is seven times that of Oracle while it still reports negative earnings?

For that matter, other market leaders such as Cisco (CSCO) and Microsoft (MSFT - Get Report) continue to be treated with the same level of disrespect, while the market continues to ignore their true value.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.44 0.00%
MSFT $44.40 0.00%
ORCL $40.36 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs