5 Stocks on a Discount that may be Worth Picking up now

Photo of author
Written By Marcus Reynolds

Navigating the landscape of a new bull market presents a unique challenge as valuations can soar, making it seem like a daunting task to find value among the highly priced stocks.

The average S&P 500 stock currently trades at nearly 21.5 times estimated earnings, indicating a frothy market environment. Despite this, opportunities abound for discerning investors willing to look beyond the surface.

This article highlights five outstanding stocks that stand out for their exceptional value, each offering a compelling case for investment without the premium price tag.

Read More: Coca-Cola Stock and Another Consumer Stapes Stock Which May be an Even Better Buy

Ares Capital: A Hidden Gem in Business Development

Ares Capital, a titan in the business development company (BDC) sector, boasts a position as the largest publicly traded BDC in the United States.

Credit: DepositPhotos

Its appeal lies not just in its size but in its attractive valuation, with a forward earnings multiple of just 8.8 times. This makes Ares Capital a standout choice for value investors seeking quality at a reasonable price.

Beyond its valuation, the company’s dividend yield of over 9.4% enhances its allure, contributing to a total return since its 2004 IPO that significantly outpaces the S&P 500.

Energy Transfer LP: Steady Value in Energy Midstream

Energy Transfer LP has seen its units more than double over the past three years, yet it remains an undervalued gem in the midstream energy sector. With a forward earnings multiple of only 8.3 times, it presents a rare bargain.

The company’s robust distribution, yielding nearly 8.8%, coupled with a commitment to growing this distribution by 3% to 5% annually, is supported by consistent cash flow from its extensive pipeline and processing plant operations.

Also Read: Tesla Predicts Slower Production Growth, Stock Falls

ExxonMobil: An Energy Powerhouse at a Discount

ExxonMobil, a behemoth in the oil and gas industry, is currently trading at an attractive valuation of about 10.7 times expected earnings, well below the average both for the S&P 500 and the broader energy sector.

Known for its appeal to income investors due to its substantial dividend yield of 3.8%, ExxonMobil also presents promising long-term growth prospects, especially with significant investments in carbon capture and storage technologies.

PayPal Holdings: Fintech’s Fallen Giant with Upside Potential

After a precipitous decline of nearly 80% since mid-2021, PayPal Holdings now offers an intriguing value proposition with a forward earnings multiple below 11.4 times. The fintech giant’s PEG ratio, sitting at an exceptionally low 0.54, underscores the stock’s attractive valuation in light of its projected growth.

Credit: DepositPhotos

Despite a slowdown, PayPal’s core business metrics, such as a 15% year-over-year increase in total payment volume and a 20% surge in adjusted earnings per share in Q3 2023, signal a robust underlying performance.

Pfizer: Pharma’s Underappreciated Pillar

Pfizer’s inclusion might raise eyebrows, given its nearly 40% decline over the past year and a 55% drop from its late 2021 peak.

However, with a forward earnings multiple of 12.6 times, significantly lower than the healthcare sector average, Pfizer presents a compelling value play. The skepticism surrounding the stock, driven by declining COVID-19 product sales and impending patent expirations, overlooks the broader, more positive outlook for the company.

Pfizer’s solid dividend yield of 6.1% further sweetens the deal for potential investors.


In a market where high valuations are the norm, these five stocks stand out as bastions of value, offering investors the opportunity to capitalize on quality investments without the inflated price tags.

Each company, with its unique strengths and market position, underscores the potential for savvy investors to find significant value even in a seemingly overvalued market landscape.

Read Next: 15 Ways to Spot the Next Mega Growth Company in The Stock Market


You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of SmallCapStocks.com (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov; the Financial Industry Regulatory Authority (the "FINRA") at www.FINRA.org, and relevant State Securities Administrator website and the OTC Markets website at www.otcmarkets.com. The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at www.sec.gov/consumer/cyberfr.htm, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: www.SmallCapStocks.com/Disclaimer and www.SmallCapStocks.com/Privacy-Policy

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.