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Mean analyst target price is a helpful tool to find potentially undervalued stocks. Although target price is known to suffer from an upward bias, whenever a stock is trading at a steep discount to target price, it may indicate that it is undervalued.

In search for potentially undervalued opportunities, we ran a screen on large-cap stocks that pay dividend yields above 2% for those that are deeply discounted from their mean analyst target price.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. (To access a complete analysis of this list's recent performance, click here.)

Do you think these stocks are undervalued? Use this list as a starting-off point for your own analysis.

List sorted by potential upside implied by target price.

1. General Dynamics Corp. (NYSE:GD): Aerospace/Defense Products & Services Industry. Market cap of $21.53B. Dividend yield at 3.17%, payout ratio at 24.79%. Target price at $82.53 vs. current price at $59.51 (implies a potential upside of 38.68%). The stock has performed poorly over the last month, losing 16.36%.

2. United Technologies Corp. (NYSE:UTX): Conglomerates Industry. Market cap of $63.55B. Dividend yield at 2.75%, payout ratio at 34.14%. Target price at $96.33 vs. current price at $69.93 (implies a potential upside of 37.76%). The stock has performed poorly over the last month, losing 19.38%.

3. Omnicom Group Inc. (NYSE:OMC): Advertising Agencies Industry. Market cap of $10.77B. Dividend yield at 2.60%, payout ratio at 28.96%. Target price at $52.77 vs. current price at $38.55 (implies a potential upside of 36.89%). It's been a rough couple of days for the stock, losing 6.23% over the last week.

4. CME Group Inc. (NASDAQ:CME): Investment Brokerage Industry. Market cap of $16.74B. Dividend yield at 2.24%, payout ratio at 28.60%. Target price at $340.96 vs. current price at $250.37 (implies a potential upside of 36.18%). The stock has performed poorly over the last month, losing 12.09%.

5. Walgreen Co. (WAG): Drug Stores Industry. Market cap of $31.40B. Dividend yield at 2.02%, payout ratio at 26.94%. Target price at $47.07 vs. current price at $34.68 (implies a potential upside of 35.72%). It's been a rough couple of days for the stock, losing 6.35% over the last week.

6. Parker Hannifin Corporation (NYSE:PH): Industrial Equipment & Components Industry. Market cap of $10.65B. Dividend yield at 2.26%, payout ratio at 19.29%. Target price at $88.92 vs. current price at $65.67 (implies a potential upside of 35.40%). It's been a rough couple of days for the stock, losing 6.15% over the last week.

7. Kohl's Corp. (NYSE:KSS): Department Stores Industry. Market cap of $13.23B. Dividend yield at 2.13%, payout ratio at 18.23%. Target price at $62.83 vs. current price at $47.06 (implies a potential upside of 33.52%). Might be undervalued at current levels, with a PEG ratio at 0.88, and P/FCF ratio at 14.06. The stock has performed poorly over the last month, losing 15.87%.

8. Norfolk Southern Corp. (NYSE:NSC): Railroads Industry. Market cap of $22.43B. Dividend yield at 2.49%, payout ratio at 31.30%. Target price at $85.75 vs. current price at $64.50 (implies a potential upside of 32.95%). It's been a rough couple of days for the stock, losing 5.45% over the last week.

9. Intel Corporation (NASDAQ:INTC): Semiconductor Industry. Market cap of $103.50B. Dividend yield at 3.69%, payout ratio at 29.97%. Target price at $26.11 vs. current price at $19.71 (implies a potential upside of 32.46%). It's been a rough couple of days for the stock, losing 5.19% over the last week.

10. Union Pacific Corporation (NYSE:UNP): Railroads Industry. Market cap of $43.16B. Dividend yield at 2.15%, payout ratio at 25.83%. Target price at $116.52 vs. current price at $88.43 (implies a potential upside of 31.76%). The stock has performed poorly over the last month, losing 15.67%.

11. Northrop Grumman Corporation (NYSE:NOC): Aerospace/Defense Diversified Industry. Market cap of $14.31B. Dividend yield at 3.90%, payout ratio at 29.29%. Target price at $67.73 vs. current price at $51.48 (implies a potential upside of 31.57%). The stock is a short-squeeze candidate, with a short float at 6.34% (equivalent to 5.36 days of average volume). The stock has performed poorly over the last month, losing 20.95%.

12. Microsoft Corporation (NASDAQ:MSFT): Application Software Industry. Market cap of $207.11B. Dividend yield at 2.60%, payout ratio at 23.33%. Target price at $32.20 vs. current price at $24.72 (implies a potential upside of 30.26%). Might be undervalued at current levels, with a PEG ratio at 0.88, and P/FCF ratio at 10.64. The stock has performed poorly over the last month, losing 10.85%.

13. Tyco International Ltd. (NYSE:TYC): Diversified Machinery Industry. Market cap of $18.44B. Dividend yield at 2.52%, payout ratio at 30.50%. Target price at $51.60 vs. current price at $39.72 (implies a potential upside of 29.91%). The stock has performed poorly over the last month, losing 15.85%.

14. Applied Materials Inc. (NASDAQ:AMAT): Semiconductor Equipment & Materials Industry. Market cap of $15.08B. Dividend yield at 2.80%, payout ratio at 24.23%. Target price at $14.83 vs. current price at $11.44 (implies a potential upside of 29.66%). Might be undervalued at current levels, with a PEG ratio at 0.94, and P/FCF ratio at 10.57. The stock has performed poorly over the last month, losing 12.67%.

15. Accenture plc (NYSE:ACN): Management Services Industry. Market cap of $35.73B. Dividend yield at 3.58%, payout ratio at 30.49%. Target price at $65.00 vs. current price at $50.47 (implies a potential upside of 28.79%). It's been a rough couple of days for the stock, losing 7.94% over the last week.

16. China Petroleum & Chemical Corp. (NYSE:SNP): Independent Oil & Gas Industry. Market cap of $78.98B. Dividend yield at 4.45%, payout ratio at 25.36%. Target price at $117.15 vs. current price at $91.04 (implies a potential upside of 28.69%). Might be undervalued at current levels, with a PEG ratio at 0.93, and P/FCF ratio at 12.56. The stock has gained 18.92% over the last year.

17. The Travelers Companies, Inc. (NYSE:TRV): Property & Casualty Insurance Industry. Market cap of $20.66B. Dividend yield at 3.33%, payout ratio at 28.16%. Target price at $62.72 vs. current price at $49.35 (implies a potential upside of 27.10%). It's been a rough couple of days for the stock, losing 5.06% over the last week.

18. ConocoPhillips (NYSE:COP): Major Integrated Oil & Gas Industry. Market cap of $90.22B. Dividend yield at 4.03%, payout ratio at 30.57%. Target price at $83.37 vs. current price at $65.71 (implies a potential upside of 26.87%). The stock has performed poorly over the last month, losing 11.86%.

19. Exxon Mobil Corporation (NYSE:XOM): Major Integrated Oil & Gas Industry. Market cap of $358.14B. Dividend yield at 2.56%, payout ratio at 23.58%. Target price at $92.38 vs. current price at $73.66 (implies a potential upside of 25.42%). The stock has performed poorly over the last month, losing 12.33%.

Target price and dividend data sourced from Screener.co; all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 19 Large Cap Dividend Stocks At A Deep Discount