In today’s historically expensive market, there are still many healthcare and energy companies priced attractively for investors. The stock market’s performance this year has been impressive, with the Dow Jones Industrial Average and S&P 500 finishing November strong and hitting all-time highs last week. The 30-stock Dow Jones Industrial Average gained 1.4% in the latest week, while the S&P 500 and Nasdaq both gained 1.1%. Despite this year’s rebound, the market still doesn’t give enough credit to a large number of companies by several measures. For example, using the CNBC Pro Stock Screener, we found that stocks in the S&P 500 are trading at a discount and may outperform significantly in the future. The companies we found all met the following criteria: A forward P/E ratio below 25, lower than the S&P 500 Wall Street analyst consensus buy rating Average 12-month price target implies at least 30% upside Several biotech companies Shares may rebound next year. Biogen, whose shares are down 38% this year, is also facing declining sales in its largest drug category, multiple sclerosis treatments. But analysts surveyed by London Stock Exchange Group (LSEG) agreed that the stock has more than 56% potential upside to its price target. Biogen, which trades at a forward price-to-earnings ratio of 10, recently beat Wall Street’s third-quarter profit and revenue estimates and raised its full-year profit guidance. The Cambridge, Mass.-based company is seeing growing sales of its breakthrough Alzheimer’s disease drug Leqembi, as well as its new rare disease and depression treatment Leqembi. Another biotech company, Regeneron Pharmaceuticals, also appears on the screen. The stock has fallen 29% so far this quarter and is down nearly 15% this year. But Regeneron could return about 44% next year, according to analyst consensus targets. JPMorgan Chase recently ranked Regeneron as a Long-term large-cap biotech stock, in part based on a survey of respondents to a recent buy-side survey. “Looking ahead to 2025, we believe biotech fundamentals will remain largely unchanged as companies achieve clinical and regulatory wins and make progress on the commercial front, all of which will All have emphasized innovation. Some energy producers are also trading at lower valuations, with oil and gas producer Devon Energy, utility and generator AES and oilfield services provider AES all on the list with the highest expected upside. (56%), with the lowest forward price-to-earnings ratio at 6.6. The company may be a beneficiary of generative artificial intelligence, Morgan Stanley analyst David Arcaro said in a September report, “AES is meeting the data. Center Renewables remains well-positioned on the demand side, and it continues to see strong interest and upward pressure on returns. Other companies trading at discounts and poised to outperform include managed care company Centene, chip maker Micron Technology and Solar panel manufacturer First Solar.
