3 Stocks Presenting Generational Buying Opportunities

Key Points

• Investors can use the current volatility in stocks to find generational buying opportunities.
• These stocks offer value near their 52-week lows and have potential catalysts once the economy improves.
• Investors can hold onto Chevron, UPS, and The Campbell’s Company to collect solid dividends today and strong growth in a recovering economy.

Many investors are tired of hearing market analysts make statements about “buying the dip.” But at the risk of sounding hyperbolic, many stocks are setting up as generational buying opportunities. 

There are many ways that investors might define a generational buying opportunity. For this article, I used the MarketBeat Stock Screener to find stocks that met the following criteria:

• Trade at a forward price-to-earnings (P/E) ratio that’s about half of the S&P 500 Average
• Have attractive dividend yields of at least 2%
• Trade near 52-week lows with a Relative Strength Indicator that is no higher than 50.

Each of these metrics suggests a stock is offering value. Furthermore, each stock on this list could easily have catalysts that could cause a rally. 

Stocks have an upward bias over any significant period. As the recent activity in stocks shows, it only takes one statement (or social media post) for investor sentiment to change. It's too early to say the current rally has legs, but even if it doesn’t, these stocks offer safety today and the possibility of strong growth when the economy revs up. 

This Big Oil Stock Is Setting Up to Deliver a Gusher for Investors

The first pick is Chevron Corporation NYSE: CVX. The stock has been dead money over the last three years. It’s been trading in a defined range and is down about 4% in that time. 

Investors are discovering that the Trump administration’s desire to increase drilling doesn’t sit well with oil companies when the price of oil is under $70 a barrel. With the belief that oil may continue to fall, Redburn Atlantic recently downgraded CVX stock to a Sell with a $124 price target.

However, Chevron is a well-managed integrated oil giant with a fortress balance sheet and expectations of generating up to $8 billion in free cash flow in 2025. It should finalize its merger with Hess Co. NYSE: HES by the end of the year. And the company is well-positioned to buy smaller assets as the industry continues to consolidate. 

Including the Redburn downgrade, analysts have a consensus price target of $165.71 for Chevron stock. That’s a 21% increase from a stock that’s trading within 3% of its 52-week low as of this writing.

Even if that growth takes a few quarters to materialize, investors are compensated while they wait. CVX stock pays a dividend that yields 5% and pays out $6.84 annually per share. The company just increased that dividend for the 38th consecutive year.

This Stock Is Setting Up to Deliver for Investors

Next up is United Parcel Service Inc. NYSE: UPS. Transportation stocks are under pressure as low- and middle-income consumers show signs of slowing down their spending activity. That’s sent UPS stock down to 5-year lows.

The immediate concern is how UPS plans to compensate for the revenue it’s expected to lose from its largest customer by the second half of 2026. That’s on top of a forecast for less revenue in 2025 than in 2024. The company’s response is a plan to increase profitability through an initiative called “Efficiency Reimagined.”

Analysts have a consensus Hold rating on UPS stock, with a price target of $128.74, which offers investors a 31.8% upside. Supporting that outlook is the company’s valuation. It’s currently trading at a forward price-to-earnings (P/E) ratio of around 12x. It pays an attractive dividend with a yield above 6% and an annual payout of $6.56 per share.

Short-Term Pain for a Stock That Can Cook Up Long-Term Profits

Just when it seemed to be safe to buy consumer staples stocks, the Trump administration launched a trade war. At this time, the total impact of the tariffs is not known, but The Campbell’s Company NASDAQ: CPB may be caught in the crosshairs. The company, formerly The Campbell Soup Company, relies on imported vegetables, which are likely to be tariffed at some level.

Analysts are also concerned about an “anemic” growth environment that may cause the company to rely on promotions to maintain consumer interest. That means it will be difficult to pass along price increases.

Campbell’s has a portfolio of popular brands that could serve it well if the economy weakens. For value-focused consumers, its products are likely to remain staples in the grocery cart.

The analyst forecasts for CPB stock include five Sell ratings. That may make investors uncomfortable, but it can also mean the stock’s price has priced in much of the negative news. With a forward P/E ratio of around 12x, a dividend yield over 4%, and a stock trading at 5-year lows, investors may be looking at more reward than risk.