Undiscovered Gems With Potential For January 2025

As we step into the new year, investors are on the lookout for undervalued stocks that have the potential for capital gains and stable income. In this article, we will explore some "undiscovered gems" that could provide opportunities for investors in January 2025, using data and examples from the provided information.



1. Undervalued Stocks in the S&P 500 Composite Index
The S&P 500 Composite Index includes 500 of the largest companies listed on the NYSE and the Nasdaq in the United States. Some undervalued stocks in this index, as of January 02, 2025, are:

| Symbol | Name | Close Price ($) | Valuation ($) | Difference (%) | Average Vol (30D) | Market Cap ($M) | Yield (%) | P/E Ratio |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| BA | Boeing | 169.90 | 355.69 | 109.35 | 12244575 | 105134 | 0.00 | 0.0 |
| MRNA | Moderna | 42.18 | 87.18 | 106.70 | 7840003 | 16830 | 0.00 | 0.0 |
| IFF | Intl Flavors & Fragrances | 82.52 | 161.43 | 95.62 | 1298863 | 21208 | 1.94 | 0.0 |
| ALB | Albemarle | 87.79 | 162.13 | 84.68 | 1867912 | 10318 | 1.83 | 0.0 |
| EPAM | EPAM Sys | 230.72 | 425.85 | 84.57 | 699486 | 13249 | 0.00 | 30.0 |
| HRL | Hormel Foods | 31.36 | 50.38 | 60.66 | 2384657 | 17211 | 3.60 | 21.3 |
| HII | Huntington Ingalls Indus | 188.08 | 297.00 | 57.91 | 633364 | 7429 | 2.79 | 10.6 |
| DG | Dollar Gen | 74.67 | 117.39 | 57.21 | 4100544 | 16427 | 3.16 | 12.3 |
| BWA | BorgWarner | 31.52 | 49.32 | 56.48 | 2444209 | 7076 | 1.40 | 7.8 |
| PPG | PPG Indus | 114.27 | 174.83 | 53.00 | 2117242 | 26773 | 2.33 | 18.1 |

These stocks are held primarily for potential income and capital appreciation. Investors should consider the valuation, yield, and P/E ratio when evaluating these undervalued stocks.

2. Undervalued Stocks in Other Sectors
Investors can also find undervalued stocks in other sectors, such as basic materials, communications services, consumer cyclical, consumer defensive, and energy. Some examples of undervalued stocks in these sectors are:

| Sector | Company | Price/Fair Value | Fair Value Uncertainty | Economic Moat Rating |
| --- | --- | --- | --- | --- |
| Basic Materials | Albemarle (ALB) | 0.38 | Very High | Narrow |
| | Dow (DOW) | 0.55 | Medium | Narrow |
| | Corteva (CTV) | 0.82 | Medium | Wide |
| Communications Services | Alphabet (GOOGL) | 0.87 | Medium | Wide |
| | Paramount Global (PARA) | 0.52 | Very High | None |
| | Comcast (CMCSA) | 0.67 | Medium | Narrow |
| Consumer Cyclical | Polaris (PII) | 0.49 | Medium | Wide |
| | Kohl's (KSS) | 0.30 | Very High | None |
| | Under Armour (UA) | 0.57 | High | None |
| Consumer Defensive | Dollar General (DG) | 0.62 | Medium | Narrow |
| | Estee Lauder (EL) | 0.45 | Medium | Wide |
| | Kraft Heinz (KHC) | 0.51 | Medium | Narrow |
| Energy | HF Sinclair (DINO) | 0.62 | Very High | Narrow |
| | Exxon Mobil (XOM) | 0.79 | High | Narrow |
| | Schlumberger (SLB) | 0.68 | Medium | Narrow |

Investors should consider the price/fair value, fair value uncertainty, and economic moat rating when evaluating these undervalued stocks in other sectors.

In conclusion, investors seeking undervalued stocks with potential for capital gains and stable income should consider the undervalued stocks in the S&P 500 Composite Index and other sectors. By evaluating the valuation, yield, P/E ratio, price/fair value, fair value uncertainty, and economic moat rating, investors can make informed decisions about which undervalued stocks to include in their portfolios. As always, it is essential to conduct thorough research and consider the specific investment goals and risk tolerance before making any investment decisions.