It’s not often that the stock market’s cyclicality brings on value deals with the potential of making a life-changing return for investors, yet when those opportunities come about, they can be sure these will likely be short-lived as more capital starts to chase the diminishing opportunities of a value investment. Today, there are three names (big enough in the United States economy) that would fit this description for investors to consider.
Representing, in part, the retail sector and directly tied to consumer activity, these stocks have been beaten down by the very nature of the cyclical behavior of said consumer activity. While some may fall into the recency bias that whatever is happening now will continue to happen, others know that the only way to move from here is up and to the right, which is where today’s list comes into play.
With names like Chipotle Mexican Grill Inc. (NYSE: CMG), PepsiCo Inc. (NASDAQ: PEP), and FedEx Co. (NYSE: FDX) falling to levels near their 52-week lows, investors have not only the brand penetration and stability of these big companies but also an undeniably attractive risk-to-reward ratio on the buying side of the equation today. It’s not a surprise, either, to see other market participants starting to show their optimism in this list as well.
Double-Digit Upside for Chipotle Stock
[content-module:Forecast|NYSE: CMG]When it comes to fast food, those who opt for Chipotle don’t do so solely because of convenience. The theme of healthier eating and avoiding the typical fast food chains is one to be reckoned with in Chipotle's stock. Now that people are returning to office spaces and food inflation is a real concern, lunch breaks at Chipotle are making a comeback.
This theme can be spotted in the company’s 5.4% comparable sales increase over the past year, which reached $2.8 billion as of the latest quarterly financial results. The pricing power and market share derived from customer preference and loyalty enable Chipotle’s earnings per share (EPS) to grow at an aggressive rate of 20% during the period.
It is not a small feat, and it is one that Wall Street analysts recognize today. As of March 2025, Morgan Stanley decided to boost Chipotle’s rating to Overweight and place a valuation target of as much as $70 per share on the name. These analysts are calling for the stock to make a new 52-week high and imply it can rally by as much as 40.3% from today’s low prices.
A Subtle Comeback Sign in Pepsi
[content-module:Forecast|NASDAQ: PEP]The market usually uses valuation metrics to communicate its opinion on a specific company. In the case of Pepsi stock, a price-to-book (P/B) ratio of 11.3x would command a significant premium over the rest of the staples sector’s current 6.6x average P/B valuation.
Whether it is due to the stock’s low volatility or the company’s defensive nature in its product line, markets today are okay with paying an above-average price for the stock, making its price discount seem insignificant for retail investors looking to lock themselves in a great deal.
Considering that the stock has outperformed the S&P 500 index by as much as 5% over the past week alone, this price action (and the premium) speaks to the preference markets now have for discounted safe stocks amid volatile times in the broader market. This is not something to be taken lightly, as it often leads to a stampede of buyers.
Over the past quarter, up to $9.2 billion worth of institutional buying took place in Pepsi stock, reiterating this view more specifically. More than that, the confirmation of safety and premium value also drove some short sellers away from Pepsi stock, judging by the 9% decline in short interest in the past month alone, a clear sign of bearish capitulation.
FedEx Could Have an EPS Swing, Can Price Follow?
[content-module:Forecast|NYSE: FDX]Usually, stock price performance is driven by underlying EPS growth, which is why today’s Wall Street forecasts make FedEx stock a potential buy target. Expecting just over $7.5 in EPS for the fourth quarter of 2025, these analysts expect a net swing of 67% from today’s reported $4.51 in EPS.
A similar double-digit rally should follow suit, as no matter what the consumer cycle is doing, a slower season is not as bad for a business like FedEx as most people may believe. Knowing this, analysts from Barclays felt comfortable with keeping an overweight rating on FedEx, but the exciting news came in their valuation targets.
Expecting the company to reach up to $350 per share, making another new 52-week high for today’s list. Not only is this a new high for FedEx stock, but it would also make a path for it to rally by as much as 45% from where it has fallen to today, presenting a fantastic opportunity for value investors.
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