Investors could win big with some of the companies reporting earnings this week that are trading below their fair valuations. The next few days make up the busiest week of the third-quarter earnings season. About one-third of the S & P 500 , or 154 companies, as well as 10 companies in the Dow Jones Industrial Average , are due to report earnings this week. The focus is sure to be on the “Magnificent Seven” titans posting results. Microsoft , Amazon , Apple , Alphabet and Meta are all on tap as well as other Big Tech names such as Intel . It is also shaping up to be a big week for companies within the travel, restaurant, energy and pharmaceuticals industries. Ahead of these results, CNBC Pro screened for the stocks reporting this week that are both trading at a discount and favored among Wall Street. To be included in the table below, stocks had to meet the following criteria: Average analyst rating at a buy or overweight Up at least 1% in the past month Trading at a forward price-to-earnings ratio of less than 24 (below the S & P 500’s multiple) Trading at a discount relative to their respective sector and industry group Analysts particularly like Norwegian Cruise Line , which will report earnings on Thursday. Shares of the cruise operator have risen more than 15% in 2024 and are currently trading at a price-to-earnings ratio of 12.5. Earlier this month, Citi upgraded the stock to a buy rating from hold. The bank accompanied this move by raising its price target to $30, about 29% higher than its current price. “NCLH’s shift in strategy gives us confidence that the considerable pricing opportunity will not be offset by runaway costs,” analyst James Hardiman wrote. “The growth trajectory points to meaningful earnings upside vs. the Street and a rethinking of the multiple.” Hardiman added that investors can expect a 23% compound annual growth rate for earnings per share over the next three years. Insurance firm MetLife will report its latest earnings on Wednesday. The stock is currently trading at 8.8 times its earnings. Earlier in October, TD Cowen opened coverage of MetLife at a buy rating . “MET’s attractive mix includes two-thirds of earnings from group benefits and international. We forecast 10%+ EPS growth with relatively low macro sensitivity,” wrote TD Cowen analyst Andrew Kligerman. Shares of MetLife have soared more than 24% in 2024. Kligerman’s $97 price target implies the stock could climb 15% from its Friday close. Entergy is another name popular among analysts. The energy company will report earnings next Thursday. Shares of Entergy are up almost 34% this year, but the stock is still trading at a price-to-earnings ratio of just 17.7. In September, Barclays analyst Nicholas Campanella upgraded the name to overweight from equal weight and raised his price target to $138 from $115. “We upgrade shares of ETR from Equal Weight to Overweight following several positive regulatory developments this summer and what we view as a largely de-risked and executable 6-8% long term EPS CAGR which still trades cheap compared to many multi-state vertically integrated peers such as SO, DUK, AEP, D and WEC,” he wrote.
