2 Overlooked Stocks
Our analysts think Wall Street has it wrong about these fundamentally sound names.
Today we're covering two fundamentally sound stocks our analysts think are undervalued.
We view the risk/reward proposition of Molson Coors as incredibly enticing. The momentum in the shares was tripped up by disappointing fourth-quarter earnings, where results were tainted by renewed lockdowns in key European markets. In our view, the market's single-minded focus has presented an opportunity for patient, fundamentals-oriented investors. Management has little control over outside factors like coronavirus breakouts, and we think the firm is doing a good job in the areas where it does have some control. We believe the market continues to price in worse-than-mediocre marketplace performance into perpetuity. The firm is certainly a lower-quality play relative to other alcoholic beverage companies under our coverage. Still, there are remnants of competitive advantage that it enjoys, including meaningful scale and distribution breadth, and we believe its investments in innovation and growth-oriented partnerships will start to balance the structural headwinds in its legacy business over the long term. We think shares are worth $60.
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