Stocks to buy

While it’s usually not the wisest move to trade against Wall Street experts, sometimes, they overlook certain ideas, presenting contrarian opportunities among stocks to buy. To be sure, the politics of the investment analysis world dictates that experts lean more bullishly; otherwise, it’s difficult to establish relationships with corporate movers and shakers. And this also implies that when analysts go bearish, they really mean it.

Still, the experts don’t always get it right. For instance, many esteemed personalities on the Street criticized cryptocurrencies as nothing more than a fad several years ago. Today, the biggest business news agencies include major crypto prices in their ticker tape. That’s one example of ignoring assets or stocks to buy based on expert opinion that eventually imposed an opportunity cost.

Nevertheless, investors should do their research to decide what’s best for them. In the meantime, here are some ideas for stocks to buy to kickstart that research process.

K Kellogg $68.38
INTC Intel $28.55
HRB H&R Block $39.75
ED Consolidated Edison $92.80
CLX Clorox $152.89
RHI Robert Half $84.40
TROW T. Rowe Price $121.36

Kellogg (K)

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Starting off this list of stocks to buy that Wall Street hates, we have breakfast king Kellogg (NYSE:K). According to a consensus of covering analysts, they peg K as a moderate sell. Unusually, no expert currently believes Kellogg’s worth of a buy rating. Instead, we have six holds and three sells. In fairness, their average price target pings at $70, which implies over 3% upside.

Nevertheless, I disagree with the bearish assessment, primarily because of the company’s plant-based meat initiative. To make a long story short, fake meat encountered trouble because of a lack of economies of scale. However, Kellogg’s Incogmeato brand taps the support of one of the world’s most famous companies. It can succeed where others failed in this otherwise compelling sector.

For full disclosure, Kellogg’s financials don’t offer a remarkable profile. Still, it enjoys a solid three-year book growth rate of 12.9%. As well, the bottom line is stacked. Most notably, the company’s return on equity stands at 38.5%, outpacing nearly 95% of its peers. Therefore, K represents one of the stocks to buy.

Intel (INTC)

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With Intel (NASDAQ:INTC), I can appreciate how the bears came to their negative conclusion. In recent years, the company slipped on competitive pressures and unforced errors. Presently, Wall Street analysts peg INTC as a consensus hold. However, Intel’s barely holding onto this hold assessment, with only three buys mitigating 17 holds and eight sells.

Plus, the average price target sits at $27.44, implying 1.29% downside potential. That’s not exactly riveting stuff. Nevertheless, INTC could be an interesting name among stocks to buy. Fundamentally, Intel’s getting its act together. At this year’s CES, the company announced the world’s fastest mobile processor. This should have significant implications for Intel’s bottom line. Both the general laptop market and the gaming-centric laptop subsegment enjoy solid growth projections.

On the financials, Gurufocus.com warns that INTC represents a possible value trap. However, the company appears in my view to be settling itself after earlier disappointments. Therefore, INTC could very well be one of the stocks to buy.

H&R Block (HRB)

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Another entry among stocks to buy that Wall Street doesn’t like, I can also understand pessimism for H&R Block (NYSE:HRB). For starters, HRB already enjoyed a blistering performance. In the trailing year, shares gained over 58% of equity value. Since the January opener, HRB moved up 11%. Second, with rising layoffs, H&R Block seemingly suffers from a declining total addressable market.

Currently, Wall Street analysts peg HRB as a consensus hold. Also, their average price target stands at $38, implying 2.31% downside risk. Nevertheless, I believe it’s one of the stocks to buy.

Fundamentally, the tax preparer benefits from the burgeoning gig economy. Specifically, tax requirements for gig workers (independent contractors) feature more complexities than your typical simple return for employees. Plus, you’d figure that some of the laid off will seek opportunities in the gig economy, boosting HRB’s addressable market. Also, note that the market prices HRB at a forward multiple of 9.14. As a discount to earnings, the company ranks better than 86.67% of its peers.

Consolidated Edison (ED)

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Though utility firms tend to be permanently relevant because they represent natural monopolies, Wall Street has different ideas about Consolidated Edison (NYSE:ED). Presently, covering experts peg ED as a consensus moderate sell. Conspicuously, not one analyst among nine felt that Consolidated was worthy of a buy rating. Instead, we have five holds and four sells.

Digging the knife deeper, the average price target sits at $89.89, implying downside risk of 2.67%. While not the most encouraging development, investors shouldn’t give up on it. It’s one of the stocks to buy despite the high-level pessimism.

Again, Consolidated Edison enjoys a natural monopoly and there’s not much anyone can do about it. Plus, the company benefits from a massive footprint, representing one of the largest investor-owned energy firms. Its subsidiary provides gas and electric service to New York City, which will remain relevant probably for centuries.

Finally, the company provides a decent forward dividend yield of 3.51%. As well, it posts 50 years of consecutive dividend increases, making it one of the stocks to buy, not sell.

Clorox (CLX)

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Not only does Clorox (NYSE:CLX) generate no love from Wall Street, it’s one of the most hated public enterprises right now. Some of that might stem from coronavirus-related hangovers. Back during the worst of the pandemic, Clorox products symbolized gold bricks. Now, people just don’t give a [waste product].

Perhaps unsurprisingly, analysts took a dim view on CLX, pegging it a consensus moderate sell. It does have one buy rating. However, it also has four holds and five sells. Moreover, their average price target sits at $139.40, implying 7.38% downside risk. Despite the cloudy weather, CLX ranks among the stocks to buy.

Basically, the contrarian bullish narrative comes down to necessity. Pandemic or not, people need to take care of their homes and themselves. Thus, it’s difficult to imagine being so negative on CLX, particularly with Clorox carrying a forward yield of 3.14%. If anything, according to Gurufocus.com’s proprietary calculations for fair market value (FMV), Clorox rates as modestly undervalued.

Robert Half (RHI)

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For staffing agency Robert Half (NYSE:RHI), Wall Street may be responding to the changing dynamics of the workforce. As you’ve probably noticed yourself with store hours suddenly being limited post-pandemic, people don’t want to work just any job. And this attitude extended into the white-collar ecosystem, presenting challenges for Robert Half.

Currently, analysts peg RHI as a consensus hold. Among five individual ratings, only one expert viewed RHI as a buy. The others broke down as two holds and two sells. Further, their average price target sits at $75.40, implying nearly 11% downside risk. While it’s not a pretty picture, RHI should be a solid candidate for stocks to buy.

Essentially, workers will be forced to drop their attitude of entitlement. While stimulus programs and unemployment checks did much to keep people afloat, that money won’t last forever. As well, with layoffs increasing, demand for RHI should cynically rise. Finally, Robert Half enjoys excellent profitability metrics and features no debt. Combined with its burgeoning relevance, RHI ranks among the stocks to buy, not to sell.

T. Rowe Price (TROW)

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In all fairness, I can appreciate why T. Rowe Price (NASDAQ:TROW) attracted skepticism from market experts. With the Federal Reserve committed to tackling skyrocketing inflation, its hawkish monetary policy forced deflationary pressures into the system. And really, that goes against the fundamental framework of modern investing. What I mean is, a gentle inflation rate is already baked into the investing paradigm.

With deflation becoming a concern if the Fed gets too aggressive, TROW attracted negative sentiment. Currently, analysts peg shares as a consensus moderate sell. Also, their average price target sits at $93.10, implying downside risk of nearly 21%. That’s quite staggering if I’m being honest. Still, TROW could be one of the stocks to buy.

Fundamentally, despite the market challenges, betting on the stock market arguably offers the best chance for wealth generation. Unfortunately, those higher rates make real estate as an investment (or even as a purchase) unattainable for many. Plus, T. Rowe enjoys a very strong balance sheet with zero debt on its books. Therefore, it may be one of the stocks to buy despite the risks.

On the date of publication, Josh Enomoto 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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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