The first part discussed some stock charts that look like they are extremely overbought. This second part will focus on stocks that still look reasonably valued. Again, this will be purely based on the stock chart analysis.
Stock 1 -TGT
According to the FAST graph, it appears TGT is not overvalued right now. I know Target JUST missed earnings estimates yesterday, and they have a lot going on in the news in regard to their grocery business, online sales, bathrooms, etc... which do need to be taken into account. Based on the chart alone, the stock has retreated nicely back to a reasonable premium compared to earnings. TGT is a dividend champion with increased dividends for 49 years!
Stock 2 -T
AT&T has a choppy chart, let's be honest. However, in the chart above, it has not traded at a premium to earnings since 2001. It is sitting right on the orange line above, but earnings forecasts are looking good so it appears to be properly valued right now. Great dividend yield right now as well! AT&T is a dividend champion as well with 32 years of increased dividends.
Stock 3 -FLO
Another example is Flowers Foods. To be transparent, I did just purchase FLO and TGT this week (post here). Why did I buy them? Because there charts look good to me. FLO has traded just above earnings as far back as this chart goes. Earnings have been flat lately, but the price has now come back down to a level that matches the earnings and therefore looks attractive. It is a dividend contender at 15 years of increasing dividends as well.
Stock 4 -TRV
Travelers Insurance has a solid looking chart with a slow and steady stock increase since 2004. I wouldn't call it an exciting stock, but its consistent and has not seen a huge run up in stock price in the latest bull market. It is a dividend contender with 12 straight years of dividend increases.
ConclusionEven in this over extended bull market, there are some stocks out there that are not trading at extreme premiums. There are certainly stocks out there that are trading for cheap, but they have very valid reasons for it. Others have news scares or other one time events that persuade the stock price. In any case, you need to do your research before buying anything. The charts above are just one tool to analyze stocks.
Did I miss any stocks that YOU think are a good buy at currently trading prices? Let me know what you think in the comments below. I would love to hear your thoughts!
Note: I am not an affiliate of FAST Graphs so I will not make any money from this article from FAST Graphs. I just find them very useful and am a regular subscriber.
Long FLO, TGT
Disclaimer: I am not a licensed investment professional. I am not liable for any losses suffered by any parties. Any information on this site is my opinion only and should not be used for investments of any kind.