Volatility may return in 2025, creating fresh opportunities for savvy investors. Using a proven stock screening strategy, we've pinpointed three undervalued stocks with 30%+ upside. Volatility could make a comeback in 2025, with forecasts predicting a shift in market dynamics after two years of nearly uninterrupted gains.
Many financial experts are anticipating a correction, and while that might sound unsettling, more volatility often translates into fresh opportunities—especially in today’s hyper-concentrated market. Since October 2022 has been remarkable, climbing nearly 70%. However, this rally has been largely fueled by a handful of powerhouse stocks—particularly those tied to the AI boom. As Duncan Lamont, CFA, Head of Strategic Research at Schroders, pointed out, the six largest U.S. companies now hold a combined market share greater than the next six largest countries—Japan, the UK, Canada, France, China, and Switzerland—combined. The weight of these six stocks is equal to that of 2,000 of the smallest global companies. With a few stocks driving the market’s momentum, many wonder if there are other high-quality, undervalued companies still ripe for growth. The answer is yes—though finding them is no simple task. Screening for these opportunities takes time, and as seasoned investors know, time is money. That’s where stock screeners come in handy. With tools like InvestingPro's stock screener, you can quickly sift through potential candidates, applying filters based on key financial metrics. This allows you to focus on stocks that have strong fundamentals and significant upside potential—without getting lost in the noise. One powerful method for identifying high-quality stocks is using the Piotroski F-Score, a system developed by Stanford professor Joseph Piotrosk