Three Value Stocks to Watch for Strong Upside Potential

As 2025 approaches, a report details three promising value stocks that could outperform the market. Owens Corning, Baker Hughes, and Delta Air Lines are identified as top picks with attractive valuations and significant growth catalysts ahead.

Date: 06-12-2024

AI Rating: 7

Stock Performance Insights

The report provides insights into three value stocks poised for growth as 2025 nears. Key highlights include:

1. Owens Corning (NYSE: OC)

Owens Corning trades at 12.4 times estimated earnings for 2025, with positive factors from a potential recovery in the housing market and expected synergies of $125 million from its acquisition of Masonite. These synergies are contingent on a recovering housing environment, which could bolster the company’s bottom line.

2. Baker Hughes (NASDAQ: BKR)

Baker Hughes displays a valuation of 19 times expected 2024 earnings. The company anticipates new energy orders exceeding $1 billion in 2024, reflecting growth from both its traditional energy services and new energy equipment sectors, which suggests a robust outlook for earnings growth. The supportive political environment surrounding energy regulations will further enhance sentiment toward the stock.

3. Delta Air Lines (NYSE: DAL)

Delta has seen a 58% increase in its stock price this year, yet it maintains an attractive valuation at 10.5 times its estimated 2024 earnings. Analysts are optimistic, and Delta is focusing on expanding its premium offerings and loyalty programs, which could lead to better earnings stability and growth. Projected free cash flow of $3 billion to $5 billion indicates a significant debt reduction potential.

Overall, these insights highlight that all three companies feature attractive valuation metrics and potential for upside, emphasizing the importance of market conditions and management strategies leading into 2025.

Stocks: OC BKR DAL