Undervalued stocks are typically always a solid investment option in a bullish or bearish market due to the fact that they offer considerable upside. 

Solid fundamentals are the backbone of a company’s overall success. Some stocks may be able to experience growth for a select period of time due to increased investor interest, but for long-term stable returns, companies with consistent earnings potential will always be a much better option.

Here are a few solid companies from multiple sectors that have seen a substantial increase in their share price over the past year but are still considered undervalued.

Cardinal Health (CAH)

Cardinal Health (NYSE:CAH) is a healthcare services company that distributes pharmaceuticals, both branded and generic, as well as various types of medical equipment, including surgical and laboratory products.

CAH released its earnings for the second quarter of fiscal year 2024 on Feb. 1. A net loss of $130 million for Q2 FY 2023 was reported, and for Q2 FY 2024, it shifted to net income of $353 million. It also stated that revenue rose by 12% compared to the previous year.

Recently, Cardinal Health agreed to acquire Specialty Networks, a medical and life science research company, for $1.2 billion in cash. The main priority of this move is to integrate Speciality Networks PPS analytics services, an electronic medical record system that operates through artificial intelligence and data analysis.

Argus upgraded the company to a buy rating, citing increased demand for generic pharmaceuticals.

CAH is a solid health care company that offers investors reliable returns. Even with the stock growing by over 50% in the last year, it is still considered undervalued, making it a great buy for investors looking for exposure to the healthcare industry.

SkyWest (SKYW)

SkyWest (NASDAQ:SKYW) is a regional airline operator focusing on passenger and cargo transportation. Much of its business involves charter and leasing services for its large fleet of over 500 aircraft.

SkyWest is an airline stock that has come out swinging within the past year, more than tripled its share price. Its improving financial position and ever-increasing partnership opportunities with other major airlines were the reason for the lift.

SKYW reported within their earnings release for the fourth quarter that total revenue increased by 10% year-over-year. It made a large improvement in net income this year. In Q4 2022, it was a loss of $47 million while in Q4 2023, a gain of $18 million was reported. A stock repurchasing program is also in place. Over 1 million shares valued at around $45 million were approved for the fourth quarter.

Similar to Cardinal Health, Skywest is still an undervalued stock despite that the large increase in its share price. It is still set to grow from its partnerships such as American Airlines (NYSE:AAL), United Airlines (NASDAQ:UAL) and Delta (NYSE:DAL) and the resurgence of demand for air travel. 

SkyWest and other airline stocks are also garnering more attention. Investors are fleeing Spirit Airlines (NYSE:SAVE) after JetBlue Airways (NASDAQ:JBLU) scrapped the deal to acquire them.

Forestar Group (FOR)

Forestar Group (NYSE:FOR) is a real estate development company that creates finished residential lots to sell to home builders. And they are a subsidiary of D.R. Horton (NYSE:DHI).

It released first quarter fiscal year 2024 results on Jan. 23. Forestar stated total revenue increased by 41% and their earnings per share rose by 81% compared to the previous year. Their large increase in earnings for the first quarter can be attributed to a 39% increase in total lots sold.

Forestar Group blew recent earnings expectations out of the park. The Federal Reserve is expected to make some type of interest rate cuts during the year that would decrease mortgage rates. That could result in an increase in demand for new homes. Forestar has seen a drastic increase in total lots sold over the past couple of years. It is it primed to take advantage of this situation if it occurs.

Its share price has grown by 162% within the last 12 months, but it is still considered a cheap stock. It can go even higher if the company continues on the path of profitability it is currently on.

As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.