Top Three Undervalued S&P 500 Stocks the Market Rally Left Behind
Key takeaways
- The S&P 500 has surged over 10% this year, but three stocks—PayPal (PYPL), Honeywell (HON), and Comcast (CMCSA)—have lagged, falling 78%, 21.5%, and 10%…
- PayPal forward P/E 9.9
- PayPal price‑to‑free‑cash‑flow 6.15
- PayPal Q2 revenue $8.7 billion
What happened
The S&P 500 has surged over 10% this year, but three stocks—PayPal (PYPL), Honeywell (HON), and Comcast (CMCSA)—have lagged, falling 78%, 21.5%, and 10% respectively, leaving them markedly undervalued.
Why it matters
Their steep declines have pushed forward price‑to‑earnings (P/E) ratios to 9.9 (PYPL), 11 (HON), and 7.17 (CMCSA), well below sector and market averages, suggesting potential upside if fundamentals improve.
Short-term and longer-term
Short-term. Short‑term traders should watch upcoming earnings releases and guidance updates for PYPL, HON, and CMCSA, as any upside surprise could trigger a quick rally.
Longer-term. Longer‑term investors see a compelling case for these stocks: PayPal’s platform dominance and balance‑sheet strength, Honeywell’s diversified industrial footprint, and Comcast’s strategic media and broadband initiatives.