3 Undervalued Stocks You Don’t Want to Overlook

Key Points

• As trade tariffs boost market volatility, investors might want to start considering a few of these discounted stocks that shouldn't be this low.
• Spread out across the consumer, property, and financial sectors, these stocks offer enough diversification and upside.
• Wall Street analysts and institutional buyers have recently expressed their optimism for these companies.

Every once in a while, the stock market’s attention will float away from stocks that deserve it and into areas in the rest of the market that might have been great investments at first but ultimately become too bloated to keep holding. Today’s market fits that description in that most of the activity has been centered in the technology sector.

This attention has centered around semiconductor and artificial intelligence names, leaving some other gems unattended. Because President Trump's rollout of the latest round of tariffs is spiking volatility regimes in the S&P 500, investors might want to look into undervalued companies to cushion their portfolios through fantastic risk-to-reward ratios.

This description fits a list of potential value plays, with lots of upside and diminished downside risk through their business models and price discounts today. These names include Wayfair Inc. NYSE: W as part of the consumer discretionary sector, also connected to Rocket Companies Inc. NYSE: RKT in the real estate sector. For those who still believe in the technology rally, Intel Co. NASDAQ: INTC plays a crucial role in future chip supply chains.

Why Wayfair Stock Attracted Institutional Buyers

Considering that this recent S&P 500 volatility drove investors into bonds as well, as seen through the bullish price action in the iShares 20+ Year Treasury Bond ETF NASDAQ: TLT, yields on these bonds and mortgages have also lowered as a result.

The trickle-down effect that these lower rates may have on real estate demand is bullish, especially now that the mortgage market index hovers near a 1996 low today. A potential breakout in housing demand, mainly residential, could also drive demand for buyers looking to furnish their newly purchased homes.

This is where Wayfair stock comes into play, and this is why Charles Schwab Investment Management decided to boost its holdings in it by 3.6% as of February 2025. This new allocation brought their net position to a high of $44.7 million today, another bullish factor for investors to lean on moving forward.

More than that, Wall Street analysts have recently decided to keep a $60.2 per share valuation for Wayfair stock. Considering that the stock only trades at 58% of its 52-week high, the potential for a valuation upgrade should not be too far-fetched for investors to consider.

Intel Answers Supply Chain Domestication Calls

President Trump has expressed his intention to domesticate semiconductors' capacity, production, and supply chain. Not only has he placed tariffs on Taiwanese chips, bringing companies like Taiwan Semiconductor Manufacturing NYSE: TSM closer to building factories in the United States, but has also called on other names.

One of them is Intel, which has been expanding its presence in Ohio and Arizona, knowing that the coming years are only going to be bullish for those who prepare. Even if tariffs and the threat of new technology keep affecting the industry, Intel stock trades at only 41% of its 52-week high, low enough to assume the worst has been priced in.

From this standpoint, it would make sense to see Wall Street analysts land on a consensus price target of $26.6 per share for Intel, which calls for a net upside of as much as 39.3% from where it trades today and also opening the way for investors to a great path to capital compounding.

Those from Charles Schwab are on a broader value hunt, as they bought Wayfair and Intel stock. As of February 2025, these buyers boosted their holdings in Intel stock by 7.1% to bring their net position to a high of $680.5 million today, providing investors with an intention to buy where the value can be found.

A Mortgage Bottom Could Pop Rocket Companies Stock

The same tailwinds that support Wayfair’s upside also support Rocket Companies' stock. A rebound in housing demand and real estate would require the mortgage market to stand in front of the new wave, which would explain why the stock has delivered a 20.6% run in the past month alone.

More than bullish price action, Wall Street analysts now forecast this company to nearly double its earnings per share (EPS) to $0.14 in the second quarter of 2025, up from today’s $0.08 level. Considering that EPS growth typically drives stock prices, investors can see that this stock still has a lot of room to run higher.

Not only does the EPS suggest that higher ceiling, but also the fact that the stock trades at only 60% of its 52-week high today, leaving investors with all of the tailwinds in the underlying industry and managing to keep their downside under control.