The stock market is not what it was 20 or 30 years ago, when each asset class and product was isolated by its own price action and narrative. However, today’s market is very different because everything is interconnected, from bonds to basic materials and commodities. As such, stocks and exchange-traded funds (ETFs) and their correlations are becoming increasingly important for investors to track in their portfolios and ideation processes.
That’s why today’s price action between growth stocks and value stocks matters, especially as the Federal Reserve (Fed) cuts interest rates for the third time in a row. Investors can read this article to find out how the iShares S&P 500 Value ETF NEW SIRKA: IVE And iShares S&P 500 Growth ETF NYSEARCA:IVW are at multi-year lows, providing a rare opportunity to buy today’s value stocks.
Knowing that this opportunity is here, and as Goldman Sachs’ chief equity strategist, said stocks with “risk-adjusted” returns are the best bet for 2025. also known as value stocks. That’s where names like PepsiCo Inc. NASDAQ: PEP, Nike Inc. NYSE: FROMAnd ASML Holdings NASDAQ: ASML get into the game for this opportunity.
PepsiCo stock discount won’t last long
Following recent declines in food and beverage stocks such as Coca-Cola Company. NYSE: K.O. And McDonald’s company. New York Stock Exchange: MCDPepsi has been embroiled in consequences proposed by the new US health chief. This proposal calls for most brands to stay away and move away from high fructose syrup as their sweetener of choice.
PepsiCo stock forecast for today
$184.31
Growth potential 21.82%Hold
Based on ratings from 16 analysts
| High forecast | US$200.00 |
|---|---|
| Average forecast | $184.31 |
| Low forecast | US$170.00 |
PepsiCo stock forecast details
Given that most of these brands use this ingredient for sweetening, investors and markets have panicked as the impact on profits and potential market share is not yet known. However, one thing is certain: PepsiCo has the scale and reach to change key ingredients without seriously hurting its financials.
Perhaps that’s why, with shares down 84% from their 52-week high, Wall Street analysts now see double-digit growth potential for the brand. Specifically, Deutsche Bank decided to upgrade its December 2024 ratings on Pepsi shares from a previous hold to a buy.
At the same time, they also raised their valuation to $184 per share, which represents upside potential of up to 21.1% from today’s price. This gives investors one way to take advantage of the growth potential inherent in value stocks today.
Nike Stocks Picked By Institutional Investors Today
Bill Ackman, hedge fund manager at Pershing Square, has been buying Nike shares on the dip, especially now that they are trading at a low of 62% of their 52-week high. Nike’s global presence and brand penetration will be factors that will help it stand out again in the consumer products segment.
NIKE stock forecast for today
$89.58
Growth potential 16.70%Moderate purchase
Based on ratings from 29 analysts
| High forecast | US$120.00 |
|---|---|
| Average forecast | $89.58 |
| Low forecast | $70.00 |
NIKE stock forecast details
But Ackman wasn’t the only one to express bullish views on Nike stock; State Street officials decided to increase their holdings of Nike shares by as much as 3.3% as of November 2024, bringing their net position to a maximum of $5.1 billion or 3.8% ownership in the company.
In addition, there is also the sentiment of Wall Street analysts. The stock’s consensus price target is currently set at $91.7, implying upside potential of up to 19% from today’s price. However, as institutions begin betting on these stocks ahead of earnings, higher valuations will likely be required.
This is where Evercore’s guidance comes in; their outperform rating along with the stock’s $97 price target would require a more realistic upside of 25.8% from today’s levels.
ASML: The Best Risk-Reward Scheme in Semiconductors
All eyes are on popular names in the semiconductor industry such as NVIDIA Company NASDAQ: NVDA. However, there are better risk-reward schemes in the market that give investors the best benefit from this value share scheme compared to all others.
ASML stock forecast today
$943.83
Growth potential 30.90%Moderate purchase
Based on ratings from 15 analysts
| High forecast | US$1148.00 |
|---|---|
| Average forecast | $943.83 |
| Low forecast | $767.00 |
ASML Stock Forecast Details
This outperformance comes courtesy of ASML stock as it is trading at just 68% of its 52-week high compared to a much higher 85% for NVIDIA stock. Moreover, its current price-to-earnings (P/E) ratio of 37.7x gives investors a significant discount compared to the rest of the computer sector, and its average valuation today stands at 271x P/E.
Wall Street analysts now forecast earnings per share (EPS) to hit $25.62 over the next 12 months, a significant increase from today’s level of $19.1, enough growth to justify the stock returning to its 52-week highs.
That’s why today’s analyst ratings reflect potential earnings per share growth. JP Morgan Chase largely saw fit to maintain an Outperform rating on ASML shares from October 2024, as well as a $1,148 price target that implies 61.6% upside from today’s prices.
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