Amid global tensions and some severe market pullbacks, investors might seek refuge in defensive sectors, particularly oversold stocks offering high dividends. With uncertainties looming over geopolitical conflicts and dwindling prospects of the Federal Reserve's rate cuts, it might be wise to turn attention toward resilient stocks poised for potential upside, especially if you’re a conservative, long-term, value-orientated investor.
Amidst the recent market pullback, monetary uncertainty, and geopolitical tensions, let’s delve into five oversold, high dividend-yielding stocks that analysts are bullish on. As defensive sectors like Utilities and Energy outperform amidst the recent volatility, these undervalued stocks present a compelling opportunity for investors aiming to balance risk with income potential. Let's explore these overlooked potential gems and understand why analysts are bullish on them in greater detail.
5 High-Yielding Oversold Stocks with Bullish Ratings
Prologis Inc.
[content-module:CompanyOverview|NYSE:PLD]Prologis (NYSE: PLD) is a powerhouse in logistics real estate. PLD is approaching highly oversold territory with a P/E ratio of 30 and an RSI of 18.95, presenting a compelling case for value investors. The company, known for its strategic focus on high-barrier, high-growth markets, boasts projected earnings growth of 13.03% for the full year and an enticing dividend yield of 3.72%.
Analysts are bullish on PLD, with sixteen ratings indicating a moderate buy sentiment. The consensus price target forecasts an impressive 30% upside, reflecting confidence in the company's long-term prospects despite short-term market fluctuations.
CVS Health Corporation
[content-module:CompanyOverview|NYSE:CVS]CVS (NYSE: CVS), a leader in the U.S. healthcare sector offering pharmacy benefit solutions, is rated as a top dividend stock. CVS boasts a nearly 4% dividend yield and a P/E ratio of 10.42, indicating extreme value and making it a highly attractive option for value investors on those metrics alone. Its oversold RSI of 26.62 adds to its appeal. Analysts are bullish, with a moderate buy rating and a 32% potential upside based on the consensus price target.
Home Depot Inc.
[content-module:CompanyOverview|NYSE:HD]Home Depot (NYSE: HD) has fallen dramatically over the previous month, off almost 16.5% from its 52-week high. However, with an oversold RSI of 29.27 and the stock finding support near its critical 200-day SMA, now might be the opportune moment to invest. HD is trading with a 21.98 P/E and offers a dividend yield of almost 3%. The company has a more bullish rating than other retail and wholesale companies and the S&P 500 consensus rating, both rated hold. Based on twenty-six analyst ratings, HD is a moderate buy with a consensus target forecasting over 13% upside.
XP Inc.
[content-module:CompanyOverview|NASDAQ:XP]XP (NASDAQ: XP) provides a host of financial products in Brazil, has a market capitalization of $11.5 billion, and an above-average dividend yield of 6.42%. The stock broke down from a multi-month consolidation earlier this month and has since fallen into oversold territory, trading with a 21.14 RSI and P/E of 14.37.
XP projects earnings growth of 18.29% for the full year and has bullish analyst ratings. The stock has a moderate buy rating based on six analyst ratings. Most recently, Morgan Stanley downgraded the name to equal weight; however, its price target still forecasts an almost 14% upside. The stock’s consensus price target of $28.40 forecasts a nearly 40% upside.
Americold Realty Trust Inc.
[content-module:CompanyOverview|NYSE:COLD]Americold Realty Trust (NYSE: COLD) is a leader in temperature-controlled logistics real estate and value-added services with a dividend yield of 3.94%. Year-to-date, the stock has been in a steady downtrend, falling over 26%. However, with the stock now trading in oversold territory with a 27.8 RSI, bullish ratings, and impressive projected earnings, it might be entering a buy zone.
Based on nine analyst ratings, the stock has a moderate buy rating and price target of $30.33, forecasting over 35% upside. Most recently, on April 25, Wells Fargo initiated coverage on the name with a price target of $24, forecasting close to 7% upside.
