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3 Smart Picks: Discounted Stocks for Savvy Investors
ADBEAdobe(ADBE) MarketBeat·2025-01-09 13:45

Market Overview - Investors are focusing on aligning portfolios with undervalued businesses to mitigate market volatility and achieve strong first-quarter performance [1][2] - The market presents rare opportunities in undervalued stocks across sectors like technology and consumer staples [2][3] Technology Sector - Adobe Inc (NASDAQ: ADBE) is trading at a significant discount, representing one of the best opportunities in the technology sector [3] - Adobe's stock is currently priced at 41958,down072419 58, down 0 72% from its previous close, and trades at 66% of its 52-week high of 638 25 [3][7] - Wall Street analysts maintain a consensus price target of 57585forAdobe,implyinga374575 85 for Adobe, implying a 37 4% upside from current levels [7] - Adobe has transitioned to a subscription-based business model, bundling its creator software products into monthly subscriptions, which has increased financial predictability and stability [6][7] - The company holds a near-monopoly in its niche, with few competitors offering a comparable all-in-one package [7] Semiconductor Industry - Advanced Micro Devices Inc (NASDAQ: AMD) is positioned to benefit from the semiconductor industry's growth, particularly in artificial intelligence [3][9] - AMD's stock is currently priced at 121 84, down 4 31% from its previous close, and trades at 54% of its 52-week high of 22730[8][10]WallStreetanalystshaveaconsensuspricetargetof227 30 [8][10] - Wall Street analysts have a consensus price target of 187 85 for AMD, implying a 54 2% upside from current levels [10] - The company has been overshadowed by NVIDIA (NASDAQ: NVDA), which trades at 92% of its 52-week high, creating a significant valuation gap [10][11] - AMD's projected earnings growth of 63 78% makes it an attractive investment compared to NVIDIA's 17 5% upside potential [10][11] Consumer Staples Sector - Hershey Co (NYSE: HSY) is trading at a discount, offering a compelling value play in the consumer staples sector [3][13] - Hershey's stock is currently priced at 16251,down182162 51, down 1 82% from its previous close, and trades at 77% of its 52-week high of 211 92 [13][14] - The company has a strong return on invested capital (ROIC) of 23%, which supports long-term wealth compounding [13] - Institutional investors, including State Street, have increased their stakes in Hershey, with State Street's position now valued at 13billion,representing351 3 billion, representing 3 5% ownership [16] - Wall Street analysts project a 77 2% increase in earnings per share (EPS) for Hershey, from 1 27 to $2 25 over the next 12 months [17] Analyst Ratings and Market Sentiment - Adobe has a MarketRank™ in the 98th percentile, with a "Moderate Buy" rating and a 37 2% upside potential [5][6] - AMD has a MarketRank™ in the 99th percentile, with a "Moderate Buy" rating and a 54 2% upside potential [10] - Hershey has a MarketRank™ in the 86th percentile, with a "Reduce" rating and a 12 1% upside potential [15]