The stock market bloodbath is finally starting to subside. And, with inflation finally cooling off, it is time to look for some of the top most overlooked stocks. All after delirious market turmoil sent several stocks significantly lower, creating an ideal opportunity to grab them at a discount. In fact, here are the three most overlooked stocks investors may want to consider buying now.
| CAT | Caterpillar | $247.36 |
| CVX | Chevron | $168.20 |
| A | Agilent Technologies | $148.98 |
Caterpillar (CAT)
One of the most overlooked stocks is Caterpillar (NYSE:CAT). The manufacturer of industrial equipment is a global leader in the mining and construction industry. With more than 300 products in its kitty, CAT stock is here to stay. Like most other stocks, 2022 was a year to forget. However, CAT did end 2022 on a good note and is inching closer to its 52-week high of $266. The stock is currently exchanging hands for $248 and is up 25% over the past six months.
In addition, with a dividend yield of over 2%, CAT stock is highly undervalued and one you should grab right away. It is expected that the stock will pick pace due to the Infrastructure Investment and Jobs Act where $1.2 trillion will be spent on infrastructure projects. The amount will be invested in refurbishing bridges, roads, water pipes, ports as well as power grid while also focusing on moving towards green energy.
The company also reported fourth-quarter results. While it did miss EPS estimates, revenue jumped 20% to $16.6 billion. It also returned $6.7 billion to the shareholders through dividends and share repurchases. Better, the company has reported year-over-year growth in revenue and earnings for six straight quarters and this has helped it offset the impact of supply chain issues. It is expected that the demand for commodities will continue to rise due to the energy transition trend and this will lead to high demand for the company.
Chevron (CVX)
Next up on the list of the most oversold stocks is Chevron (NYSE:CVX). The oil giant gained 25% over the past year and is trading at $169 today. The sustained global crude oil price growth has led to massive success for the company. Investors who own CVX stock have been able to enjoy massive returns over the past two years. The stock was trading as low as $59 in March 2020 and it picked up in Sept. 2021.
Better, Chevron recently reported fourth-quarter results and reported earnings of $35.5 billion for the year, an increase from $15.6 billion year over year. Its adjusted earnings stood at $18.8 per share. While it missed the EPS for the quarter by $0.20, it did meet the revenue expectations for the quarter and reported quarterly revenue of $56.47. The earnings miss had an impact on the stock but the dip could be a good opportunity to make your move. It is expected that the company could invest in another oil and gas company very soon. With the push from record cash flows, the company increased its dividend by 6% and it continues to maintain a strong position in the industry while growing the top and bottom lines and rewarding shareholders.
Agilent Technologies (A)
Finally, Agilent Technologies (NYSE:A) is another one of the overlooked stocks to consider. The company has various platforms for laboratories as well as routine diagnostics markets. Despite the market turmoil, the stock is up 12% over the past year and 14% in the past six months. It could continue to soar further in the coming months.
It is trading at $149,42 today and could hit $160 very soon. While not a household name, the company has a track record of shareholder value creation and it managed to beat expectations for the last four quarters. In the fourth quarter, the revenue stood at $1.85 billion and the EPS of $1.53 was better than the projection of $1.39.
For this year, the company expects revenue in the range of $6.90 billion to $7 billion and EPS in the range of $5.61 to $5.69. In the first quarter, it expects to report a revenue ranging between $1.68 billion to $1.70 billion and an EPS expected in the range of $1.29 to $1.31.
Agilent Technologies is scheduled to report the first quarter results on February 28. If the company manages to beat expectations, A stock could pick pace. Wells Fargo analyst Timothy Daley has an Overweight rating for A stock with a price target of $170. The company has a dividend yield of 0.59% and its recent dividend was 0.22. A highly overlooked stock right now, Agilent Technologies is also a dividend grower and is ready for massive growth in 2023.
On the date of publication, Vandita Jadeja did not have (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.