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One way to search for undervalued stocks is by looking at mean analyst target price. Although target price is known to suffer an upward bias, stocks trading at significant discounts to target price may be undervalued.

We ran a screen on tech stocks with market caps above $20 billion for those trading at significant discounts to 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.

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

List sorted by potential upside implied by target price.

1. Google Inc. (NASDAQ:GOOG):
The world's most popular search engine. Market cap of $169.47B. Target price at $726.53 vs. current price at $524.84 (implies a potential upside of 38.43%). The stock has gained 11.6% over the last year.

2. Siemens AG (SI):
Operates in the industry, energy and healthcare sectors worldwide. Market cap of $90.06B. Target price at $137.30 vs. current price at $99.34 (implies a potential upside of 38.22%). The stock is currently stuck in a downtrend, trading 10.62% below its SMA20, 22.9% below its SMA50, and 26.99% below its SMA200. The stock has gained 5.36% over the last year.

3. Danaher Corp. (NYSE:DHR): Designs, manufactures and markets professional, medical, industrial and commercial products and services primarily in North America, Europe and Asia/Australia. Market cap of $29.51B. Target price at $58.52 vs. current price at $43.05 (implies a potential upside of 35.94%). The stock has gained 9.93% over the last year.

4. Oracle Corp. (NYSE:ORCL): Develops, manufactures, markets, distributes and services database and middleware software, applications software and hardware systems worldwide. Market cap of $136.43B. Target price at $36.63 vs. current price at $26.97 (implies a potential upside of 35.82%). The stock has gained 18.5% over the last year.

5. Intel Corporation (NASDAQ:INTC):
Engages in the design, manufacture and sale of integrated circuits for computing and communications industries worldwide. Market cap of $103.13B. Target price at $26.06 vs. current price at $19.64 (implies a potential upside of 32.70%). Offers a good dividend, and appears to have good liquidity to back it up - dividend yield at 4.28%, current ratio at 2.23, and quick ratio at 1.84. The stock has gained 10.21% over the last year.

6. Baidu, Inc. (NASDAQ:BIDU): Provides Internet search services. Market cap of $48.99B. Target price at $185.17 vs. current price at $140.45 (implies a potential upside of 31.84%). The stock has gained 66.61% over the last year.

7. Apple Inc. (NASDAQ:AAPL):
Designs, manufactures and markets personal computers, mobile communication and media devices, and portable digital music players, as well as selling related software, services, peripherals, networking solutions and third-party digital content and applications worldwide. Market cap of $346.78B. Target price at $489.94 vs. current price at $374.05 (implies a potential upside of 30.98%). Might be undervalued at current levels, with a PEG ratio at 0.71, and P/FCF ratio at 11.92. The stock has gained 44.55% over the last year.

8. QUALCOMM Incorporated (NASDAQ:QCOM)
: Engages in the development, design, manufacture and marketing of digital wireless telecommunications products and services. Market cap of $83.45B. Target price at $64.78 vs. current price at $49.68 (implies a potential upside of 30.40%). The stock has gained 24.95% over the last year.

9. Emerson Electric Co. (NYSE:EMR):
Operates as a diversified manufacturing and technology company. Market cap of $32.79B. Target price at $56.79 vs. current price at $44.03 (implies a potential upside of 28.98%). The stock has lost 9.22% over the last year.

10. Canon Inc. (NYSE:CAJ): Manufactures and sells network digital multifunction devices (MFDs), plain paper copying machines, laser printers, inkjet printers, cameras and lithography equipment primarily under the Canon brand in the Americas, Europe, Asia and Oceania. Market cap of $61.39B. Target price at $57.24 vs. current price at $45.97 (implies a potential upside of 24.52%). Offers a good dividend, and appears to have good liquidity to back it up - dividend yield at 3.36%, current ratio at 2.39, and quick ratio at 1.86. The stock has gained 7.95% over the last year.

11. Microsoft Corporation (NASDAQ:MSFT): Develops, licenses and supports a range of software products and services for various computing devices worldwide. Market cap of $216.16B. Target price at $32.08 vs. current price at $25.80 (implies a potential upside of 24.35%). Might be undervalued at current levels, with a PEG ratio at 0.85, and P/FCF ratio at 11.11. The stock has gained 8.91% over the last year.

12. VMware, Inc. (NYSE:VMW): Provides virtualization and virtualization-based cloud infrastructure solutions primarily in the United States. Market cap of $37.20B. Target price at $109.45 vs. current price at $88.08 (implies a potential upside of 24.26%). The stock has gained 4.32% over the last year.

*Target price 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: 12 Large-Cap Tech Stocks Undervalued By Target Price