3 Bargain Stocks to Beat the Market
The Value Line Investment Survey sees a strong year ahead for these picks.

With the help of the Value Line Investment Survey, we’ve identified three bargains with timeliness ratings of 1, meaning that Value Line believes they are primed to outpace the market over the next year. (Prices are as of May 1.)
Biotech giant Gilead Sciences (symbol GILD, $105) trades for just 10 times projected earnings, about 45% less than the price-earnings ratio of the overall market and 60% less than the P/E of Gilead’s biggest rivals. Wall Street is down on Gilead because it has been cutting the price of its blockbuster hepatitis C drugs, Sovaldi and Harvoni, and signing profit-sharing deals with generic-drug companies. The moves will pare Gilead’s profit margins, but they make the drugs more attractive to the insurers and government agencies that pay the tab. Gilead just began paying a dividend.
Shares of semiconductor maker Micron Technology (MU, $29) have sunk by more than 17% since December because of slumping personal computer sales. But Micron has new contracts with suppliers and partners that will pare expenses and possibly boost sales in 2016, says Value Line. The stock sells for only 9 times estimated 2015 profits. Value Line sees earnings surging this year and in 2016.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Shares of Chicago Bridge & Iron (CBI, $50), which builds infrastructure for energy companies, have tumbled 37% since April 2014, a victim of the drop in oil prices. The Netherlands-based company recently trimmed its outlook for 2015, but it has plenty of projects in its backlog and expects earnings to rise this year. CBI is flush with cash, which it plans to use to repurchase as much as 10% of its shares. The stock sells for 9 times estimated profits, giving it above-average long-term potential, says Value Line.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
Donating Complex Assets Doesn't Have to Be Complicated
If you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Travel trends you can expect this summer
The Kiplinger Letter Domestic trips will trump foreign travel amid economic uncertainties, though some costs are down.
-
My Three-Day Rule for Investing: And If it Applies Now
Stock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Is It Time to Invest in Europe?
Stock Market Europe is being shaken out of its lethargy, militarily and otherwise, by Donald Trump's changes in U.S. policy. Should investors start buying?
-
The Best Health Care Stocks to Buy
The best health care stocks offer investors a defensive hedge in an uncertain market. Here's how to find them.
-
Why Is Warren Buffett Selling So Much Stock?
Berkshire Hathaway is dumping equities, hoarding cash and making market participants nervous.
-
If You'd Put $1,000 Into Google Stock 20 Years Ago, Here's What You'd Have Today
Google parent Alphabet has been a market-beating machine for ages.
-
Stock Market Today: Stocks Retreat Ahead of Nvidia Earnings
Markets lost ground on light volume Wednesday as traders keyed on AI bellwether Nvidia earnings after the close.
-
Stock Market Today: Stocks Edge Higher With Nvidia Earnings in Focus
Nvidia stock gained ground ahead of tomorrow's after-the-close earnings event, while Super Micro Computer got hit by a short seller report.
-
Stock Market Today: Dow Hits New Record Closing High
The Nasdaq Composite and S&P 500 finished in the red as semiconductor stocks struggled.