10 Oversold Midcap Stocks to Buy Right Now

8. Lear Corporation (NYSE:LEA)

Forward P/E: 6.91

Analysts Upside Potential as of November 14: 34%

Year to date performance as of November 14: -30.47%

Lear Corporation (NYSE:LEA) is an auto parts company that designs, develops, manufactures and sells automotive seating and electrical distribution systems. Down by about 30% year to date, the stock has felt the full brunt of the high interest rate environment that has affected consumer purchasing power.

Concerns over weaker global light vehicle production and lower EV penetration have impacted market sentiment and revenue streams. However, Lear Corporation (NYSE:LEA) benefits from strong ties with Chinese manufacturers, offsetting downturns in the US and Europe. Management is optimistic about long-term growth, targeting 4 points growth in seating and 6 points in E-Systems over the next five years, with investments in automation and integration expected to reduce costs and boost profit margins.

While revenue in the third quarter was down by 3% year over year to $5.58 billion, earnings increased to $2.89 a share compared to $2.87 a share delivered the same quarter last year. The company also exited the quarter in a solid financial position with cash and cash equivalents of $764 million.

Lear Corporation (NYSE:LEA) continues to return value through buybacks, having repurchased $209 million worth of shares in Q3, affirming why it is one of the best oversold mid-cap stocks to buy. While trading at a price-to-earnings multiple of 6.91, the stock comes with a 3.16% dividend yield. Analysts have an average price target of $132.10, implying a 34% upside potential as of November 14, 2024.