While the S&P 500 index remains close to its all-time high and some stocks are severely overpriced, deals can still be found in this market. There are many securities that have seen their share price pushed down to levels that make them considerably undervalued. As a result, there are several bargain stocks to buy that can deliver profits to investors.
Investors looking for deals should find plenty, especially after September when markets tanked across the board. Stocks are just now starting to recover and create opportunities for gains.
These seven bargain stocks to buy in October should position investors for a strong finish to the year:
- Nautilus (NYSE:NLS)
- Walmart (NYSE:WMT)
- Palantir (NYSE:PLTR)
- AMC Entertainment (NYSE:AMC)
- Intel (NASDAQ:INTC)
- Walt Disney (NYSE:DIS)
- Southwest Airlines (NYSE:LUV)
Bargain Stocks to Buy: Nautilus (NLS)
Nautilus manufactures treadmills and stationary bikes and competes with Peloton (NASDAQ:PTON) for market share in the connected fitness space.
Right now, analysts who cover fitness equipment maker Nautilus feel that the Vancouver, Washington-based company’s stock should be double its current price. NLS stock is currently changing hands around $9.20 per share, and analysts’ median price target is $18.50. The lowest rating on the share price is $12.50, which is more than 35% higher than its current level.
Any way you look at it, Nautilus stock has been beaten down to a rock-bottom price and is a bargain at less than $10 per share.
The company has seen its stock move lower as the pandemic nears its end. Investors are worried people are returning to public fitness centers and giving up home exercise.
Nautilus has increased its revenue consistently over the past five years and recently outlined a plan to double its revenue by fiscal 2026. But this hasn’t been enough to please Wall Street. Regardless, NLS stock is due for an upward correction and when the share price finally does rise, investors who bought in at the bottom will be rewarded.
Retail giant Walmart is a blue-chip stock that has largely traded sideways throughout this year. The Arkansas-based department store chain’s share price is down 3.6% on the year at $139, with most of that decline coming during the volatile month of September.
While WMT stock has not suffered a big decline, analysts agree it is a bargain at its current price.
The median price target on WMT stock is $170 per share, implying a potential 22% gain from where it’s currently trading. While other national retailers such as Target (NYSE:TGT) and Macy’s (NYSE:M) have enjoyed big runs in their share prices, Walmart’s stock is down nearly 5% over the last 52 weeks. Again, it’s not a big drop, but it’s seen no real gains to speak of either.
Given its global reach, aggressive push into e-commerce and profitability, it is likely only a matter of time before a rally in WMT stock is sparked.
Bargain Stocks to Buy: Palantir (PLTR)
It’s not for everyone, but big data analytics company Palantir’s stock does look like a bargain at its current price of $23.66 a share. The secretive Denver, Colorado-based company has lucrative contracts with the U.S. Department of Defense and other high-profile customers.
Palantir has also seen its shares flatline in 2021. Year-to-date (YTD), PLTR stock is up only 2%. Since the start of September, the share price has come down more than 7%.
However, Wall Street remains fairly bullish on Palantir and its outlook. The median price target on the shares is currently $25, suggesting a 2.5% gain from here. But there are many technology bulls who love the company and champion its stock.
One such bull is Ark Invest CEO Cathie Wood, who purchased more than $11 million worth of the stock in August, adding it to each of Ark’s actively managed exchange traded funds (ETFs).
AMC Entertainment (AMC)
Putting its meme stock status aside, there are many reasons to like movie theater chain AMC Entertainment’s shares. The Leawood, Kansas-based company’s 950 movie theaters around the world are reopened, and people are venturing out of their homes to go the cinema and see newly released films.
The industry’s recovery progress is being reflected at the box office. The latest James Bond movie grossed more than $300 million worldwide in its first two weeks of theatrical release, providing hope that the movie theater experience will survive and thrive.
Of course, evaluating AMC stock is tricky. It started off the year at a very low price around $2 per share, then was pushed up more than 3,500% with other meme stocks this spring.
Now trading around $40 per share, a little more than half its spring peak price of $72.62, AMC stock is at the same level reached in 2017 before anyone had heard of Covid-19.
Going forward, the share price should normalize even more and begin rising in a steadier, more consistent manner as the theater business gets back on track with more new releases.
Bargain Stocks to Buy: Intel (INTC)
Down 22% in the past six months, including a 3.5% drop in the last 30 days, Intel shares appear to be on sale.
The world’s largest semiconductor chip manufacturer’s stock is now worth $53.50, approximately the same level it has traded at since 2018.
The current share price is a bit surprising considering we’re in the midst of a global semiconductor chip shortage. But analysts see upside ahead for INTC stock. The median price target on Intel shares is $60, implying a 12% gain from here.
Intel is making a lot of big moves right now to help alleviate the semiconductor shortage and position itself for future growth. At the end of September, the company broke ground on two new factories in Arizona that it is investing $20 billion to develop. Intel says the new factories will help it manufacture the smallest, fastest semiconductor chips in the world by 2025.
Walt Disney (DIS)
Considering how many things are going well for Walt Disney, you’d think its shares would be going gangbusters. After all, movie theaters have reopened, its streaming platform added subscribers and its theme parks and cruise ships are welcoming visitors again.
But so far, that’s not been the case. DIS stock is down 4% on the year at its current price of $175 per share. The share price has struggled to remain above $180 since May.
The decline was sparked back in March when Disney reported numbers that showed a slowdown in the growth of its streaming service. But when you add more than 100 million subscribers in 18 months, some cooling off should be expected. The stock was also weighed down by concerns that the delta variant could shutter some of Disney’s parks this fall.
Yet analysts have a median price target on DIS stock of $210 per share, which would be a 20% increase from current levels. The high estimate on the stock is $263.
Bargain Stocks to Buy: Southwest Airlines (LUV)
Chaos abounds at Southwest Airlines. The carrier recently cancelled more than 2,000 scheduled flights due to several reasons, including weather and air traffic control center issues. The busiest domestic U.S-based airline has been eviscerated lately for stranding travelers.
The airliner’s issues this past weekend were attributed to its scheduling procedures, which lead to “cascading disruptions” after the first round of flights were cancelled. With Americans flying again, and in the lead-up to the busy holiday travel season, Southwest Airlines is scrambling to get its house in order.
All the problems have pushed down LUV stock to bargain bin prices. The airline’s share price is down 19% in the past six months to about $52. But Wall Street still has faith in the carrier, with a median price target on the stock of $65 — a 25% gain overall.
On the date of publication, Joel Baglole held long positions in DIS and LUV. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.