Analysts Think These 10 Stocks Are Overvalued

Published February 10, 2022 at 4:05 pm EST Updated September 7, 2026 at 1:59 pm EDT

In this article, we discuss 10 stocks that analysts think are overvalued.

Company valuations are all over the place amid rising interest rates, inflationary pressure, and COVID-19 headwinds. Legendary investors like Warren Buffett, Carl Icahn, and Charlie Munger focus on a company’s intrinsic value when selecting investment portfolios. According to Morgan Stanley, the current prices in the stock market reflect a sharp tightening cycle from the Fed, which indicates that growth will likely moderate in the future. Many indices are already repricing to adjust to the new economic environment, and for returns to surpass market benchmarks, fixed-income investments in four key areas including investment-grade corporate bonds, high-yield bonds, securitized credit, and emerging-market debt are favorable.

After rebounding to approximately 5.5% in 2021, the World Economic Forum expects that global growth will decelerate significantly in 2022 to 4.1%, owing to ongoing COVID-19 variants, tightened fiscal support, and prevailing supply chain bottlenecks. It is important to look out for stable value stocks in such a dynamic market, and companies like JPMorgan Chase & Co. (NYSE:JPM), Verizon Communications Inc. (NYSE:VZ), and Bank of America Corporation (NYSE:BAC) are considered to be good value plays in this environment.

Photo by Joshua Mayo on Unsplash

Our Methodology

We researched companies that were considered to be overvalued by market analysts in 2021 and so far in 2022, mentioning analyst ratings for each stock, in addition to the hedge fund sentiment around the holdings to provide further context for readers.

Analysts Think These Stocks Are Overvalued

10. Rivian Automotive, Inc. (NASDAQ:RIVN)

Number of Hedge Fund Holders: N/A

Rivian Automotive, Inc. (NASDAQ:RIVN) is a California-based manufacturer of electric vehicles, offering pickup trucks and sports utility vehicles. Rivian Automotive, Inc. posted on December 16 its Q3 results, where the company revealed a loss per share of $7.68, missing estimates by $0.85. Similarly, the $1 million revenue also missed market consensus estimates.

Gene Munster, managing partner at Loup Ventures, joined CNBC for a discussion on November 11, where he stated that Rivian Automotive, Inc.’s valuation does not make any sense, since the company’s projected 2023 valuation per vehicle if it produces 70,000 units comes in at $1.3 million, whereas Tesla, Inc. (NASDAQ:TSLA)’s valuation per EV in 2023 clocks in at $500,000. Rivian Automotive, Inc. is trading at 2.5 times Tesla’s valuation, but the stock does not offer the same resilience, upside, and autonomy as Tesla, which is why it is highly overvalued according to Munster.

On January 26, JPMorgan analyst Ryan Brinkman lowered the price target on Rivian Automotive, Inc. to $84 from $104 and kept a Neutral rating on the shares. The analyst slightly lowered expectations for Q4 Rivian Automotive, Inc. builds to 800 from 900, but this has no impact on his valuation. Rather, the reduction in the price target is a consequence of a higher assumed discount rate.

Here is what Greenlight Capital has to say about Rivian Automotive, Inc. in its Q4 2021 investor letter:

“We made a material gain in Rivian (RIVN) as a result of its IPO. We met Rivian Automotive, Inc. ’s sponsors in 2018 as part of our continued work on electric vehicles, and were favorably impressed by their technology and discipline. In mid-2020, we made a small investment at a $10 billion valuation. In November, Rivian Automotive, Inc. went public at a $70 billion valuation and traded to a peak valuation of $162 billion. We hedged in the options market to lock in a minimum valuation of about $120 billion for a good chunk of our position. While we are believers in the company, we did not have material exposure at year end.”

9. AMC Entertainment Holdings, Inc. (NYSE:AMC)

Number of Hedge Fund Holders: 17

AMC Entertainment Holdings, Inc. (NYSE:AMC) is a Kansas-based company that owns and operates movie theaters across the United States and internationally. Hedge fund sentiment decreased around AMC Entertainment Holdings, Inc. in Q3 2021, as the number of long positions held in the stock declined to 17 from 21 in the quarter earlier.

On February 2, AMC Entertainment Holdings, Inc. announced that it will issue $500 million of first lien senior secured notes due 2029 in a private offering. The company priced its upsized private offering of $950 million of 7.500% first lien senior secured notes due 2029, representing an increase of $450 million from previous offering size.

Benchmark analyst Mike Hickey on February 1 noted that AMC Entertainment Holdings, Inc. announced preliminary Q4 results which included both revenue and profit that “meaningfully” exceed the consensus view, and this reaffirms his belief that the domestic box office continues to bounce back from the COVID-19 pandemic. While AMC Entertainment Holdings, Inc. was “very profitable” on an AEBITDA calculation and delivered strong positive cash flow, the stock’s current valuation remains at “extreme levels” when compared to peers, said the analyst, who has a Hold rating and no price target on AMC Entertainment Holdings, Inc. shares.

In Q3 2021, Renaissance Technologies held a prominent stake in AMC Entertainment Holdings, Inc., with 2.50 million shares worth over $95 million.

Here is what Bronte Capital has to say about AMC Entertainment Holdings, Inc. in its Q3 2021 investor letter:

“AMC is simply an extreme example of what is probably a non-promoted delusion. It is a highly levered company owning multiplex cinemas. (Full disclosure – we are short a tiny position – about a tenth of a percent of our fund.)

Business prospects for AMC Entertainment Holdings, Inc. are poor.

Every year large screen televisions and home theater equipment become cheaper. Every year the attraction of the couch at home versus the multiplex improves. It looked – preCovid – to be a slow burn to bankruptcy.

That is not guaranteed though. Hollywood might come up with a better offer. Or AMC might be saved by some new technology (such as a truly realistic 3D that does not give you headaches).

Post Covid, AMC looks like a fast-track to bankruptcy even after it has raised over a billion dollars from mostly retail investors.

AMC is the subject of a widespread delusion that believes that hedge funds manipulate the stock in “dark pools” and with massive numbers of fake shares. They allege the US Securities Regulators are in cahoots with Citadel (a large market maker) to manipulate the stock. They also believe by ganging up (people power) they can “democratize capitalism” and destroy the dastardly short sellers.”

8. The Trade Desk, Inc. (NASDAQ:TTD)

Number of Hedge Fund Holders: 19

Headquartered in Ventura, California, The Trade Desk, Inc. (NASDAQ:TTD) is a technology company that provides a self-service on-demand platform, enabling users to create, manage, and optimize digital advertising campaigns in multiple formats and channels. With third quarter earnings clocking in at $0.18, and revenue for the period equaling $301 million, The Trade Desk, Inc.’s price to earnings ratio of 137.98 is unjustified, making the stock highly overvalued.

In the third quarter of 2021, 19 hedge funds reported owning stakes in The Trade Desk, Inc., totaling $499 million, down from 25 funds holdings stakes worth roughly $720 million in The Trade Desk, Inc. in the prior quarter. Zevenbergen Capital Investments held the leading position in The Trade Desk, Inc. in Q3 2021, with 3.8 million shares valued at $269.4 million.

Stifel analyst Mark Kelley resumed coverage of The Trade Desk, Inc. on January 31 with a Hold rating and a $68 price target. The analyst stated that while the feedback he heard about the company was mostly positive, he believes The Trade Desk, Inc. shares are “stretched at current levels”. He added that much of the investor optimism on the stock is focused around Connected TV advertising, which “still has room to improve”.

Unlike JPMorgan Chase & Co., Verizon Communications Inc., and Bank of America Corporation, analysts believe that The Trade Desk, Inc. is an overvalued stock.

Here is what Rowan Street Capital has to say about The Trade Desk, Inc. in its Q4 2021 investor letter:

“Trade Desk (TTD)

Revenues grew from $477 million in 2018 to estimated $1.1 billion for 2021, which represents a 2.4x growth over past 3 years or 33% per annum.

Gross profits grew even faster at 35% per annum.

TTD Stock has grown approximately 600% since the beginning of 2019.

The stock advance has surpassed an already very rapid growth in the business itself as the price-to-sale multiple has grown from 7x to current 35x (see below). Trade Desk was a relatively unknown company back in 2017, operating in the space that was widely viewed with a lot of skepticism and now its has grown into a leader in the industry with solid growth and profitability (even though its still very early in its growth stage) and a massive total addressable market (TAM). Thus, Mr. Market has not only warmed up to TTD, but has grown very enthusiastic about the future potential of this business. We have been fortunate to acquire a position in TTD stock during pandemic lows in April of 2020 (our cost basis is $17.40) — the only time when its valuation seemed reasonable and presented some margin of safety.”

7. McCormick & Company, Incorporated (NYSE:MKC)

Number of Hedge Fund Holders: 35

McCormick & Company, Incorporated distributes and markets spices, seasoning mixes, condiments, and other consumer and flavor solutions to the food industry, supplying directly to distributors and wholesale foodservice suppliers. The company was founded in 1889 and is headquartered in Hunt Valley, Maryland.

Publishing its Q4 results on January 27, McCormick & Company, Incorporated posted earnings per share of $0.84, beating estimates by $0.04. Revenue over the period jumped 11.07% year-over-year to $1.73 billion, outperforming estimates by $16.38 million.

Credit Suisse analyst Robert Moskow downgraded McCormick & Company, Incorporated on January 19 to Neutral from Outperform with an unchanged price target of $100. The analyst cites valuation for the downgrade with the stock near the price target. The analyst still believes the company will meet consensus earnings estimates for Q4 and guide 2022 earnings slightly above consensus.

On November 30, McCormick & Company, Incorporated declared a $0.37 per share quarterly dividend, which is an 8.8% increase from its prior dividend of $0.34. The dividend was paid on January 10, to shareholders of record on December 31.

A total of 35 hedge funds were bullish on McCormick & Company, Incorporated in Q3 2021, with stakes totaling $1.78 billion, as compared to 34 funds in the prior quarter, holding stakes in McCormick & Company, Incorporated worth over $2 billion. Fundsmith LLP is the biggest McCormick & Company, Incorporated stakeholder, with 18.7 million shares worth $1.5 billion.

Here is what ClearBridge Sustainability Leaders Strategy has to say about McCormick & Company, Incorporated in its Q3 2021 investor letter:

“Within consumer staples, we sold out of Unilever, a great company and sustainability leader that we believe faces margin headwinds as it invests to promote growth, and replaced it with McCormick, a leader in food seasonings and flavors. McCormick is a high-quality business that has lagged recently due to the negative COVID-19 impacts on the business, which provided us with an attractive entry point. The company is also levered to the healthy eating trend, as seasonings are a healthier substitute for sugar and fat.”

6. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 41

International Business Machines Corporation (NYSE:IBM) was incorporated in 1911 and is headquartered in Armonk, New York, providing integrated technology solutions and services worldwide. In the third quarter of 2021, 41 hedge funds held long positions in International Business Machines Corporation, with collective stakes totaling $1.40 billion.

Morningstar analyst Julie Bhusal Sharma stated in late October that International Business Machines Corporation is indeed overvalued and the company’s performance has not been up to the mark as compared to its run a decade ago. Earnings are not living up to the innovation that International Business Machines Corporation once had, and it has lagged its peers, according to Sharma.

International Business Machines Corporation on February 1 declared a $1.64 per share quarterly dividend, in line with previous. The dividend is payable on March 10, to shareholders of record on February 11.

On January 24, International Business Machines Corporation posted its Q4 results. The company reported earnings per share of $3.35, beating estimates by $0.06. Revenue over the quarter dropped 18% year-over-year, totaling $16.70 billion, outperforming estimates by $730.50 million.

Tigress Financial analyst Ivan Feinseth reiterated a Neutral rating on International Business Machines Corporation and initiated a 12 month target price of $133 on January 28. The analyst believes “intense” competition and a lack of major growth catalysts provide little opportunity for significant near-term share gains. With that said, International Business Machines Corporation “looks close to turning a corner, having reported the best sales growth in 10 years on strong cloud demand”, according to Feinseth.

Arrowstreet Capital held a prominent stake in International Business Machines Corporation as of Q3 2021, with 2.86 million shares worth $398 million.

International Business Machines Corporation still remains popular among hedge funds, just like JPMorgan Chase & Co., Verizon Communications Inc., and Bank of America Corporation.

Here is what St. James Investment Company has to say about International Business Machines Corporation in its Q4 2021 investor letter:

“IBM was not the first company to build computers. The distinction belongs to Sperry-Rand’s subsidiary UNIVAC, which introduced the first commercially successful computers in the early 1950s. In this era, IBM did possess the largest research and development department of the business machines industry and quickly caught up, introducing cost-competitive computers a few years after UNIVAC. By the late 1950s, IBM held the dominant market share in computers. IBM also touted a vastly superior sales organization, which used a sales tactic called “paper machines” (the equivalent of today’s “vaporware”). If a competitor’s product was selling well in a market segment that IBM had yet to penetrate, the company would announce a competing product and start taking orders for the “paper machine” long before it was available.

One cannot overstate how powerful IBM was in the computer industry in the 1950s and 1960s. Every competitor rightly worried that if their product worked too well for too long, it was only a matter of

time before an army of IBM salesforce representatives mobilized. In their easily recognizable uniforms of starched white shirts, red ties and blue suits, IBM marketers marched on their customers and offered a more expensive, but much more defensible, choice. “Nobody gets fired for buying IBM” was a common phrase. Even competitors acknowledged that the company excelled at sales. As a UNIVAC executive once complained, ‘It doesn’t do much good to build a better mousetrap if the other guy selling mousetraps has five times as many salesmen.’” (Click here to see the full text)

5. Moderna, Inc. (NASDAQ:MRNA)

Number of Hedge Fund Holders: 49

Moderna, Inc. (NASDAQ:MRNA) is a Massachusetts-based biotechnology company focused on creating therapeutics and vaccines to treat infectious and rare diseases, immuno-oncology, cardiovascular diseases, and auto-immune diseases. The company missed on earnings and revenue consensus in Q3 2021.

Bank of America analyst Geoff Meacham stated on August 11 that he believes that Moderna, Inc. is “ridiculously” overvalued, and the business model does not reconcile with the valuation. He stated that the valuation assumes that the Moderna, Inc. pipeline will be completely successful, and COVID-19 vaccine sales will reach a billion units till 2038, which are not safe assumptions. The analyst called for a 75% pullback on the stock, and over the last 6 months, Moderna, Inc. shares have dropped roughly 67%, in line with Meacham’s forecast.

Piper Sandler analyst Edward Tenthoff believes the FDA’s full approval today of Spikevax “broadly de-risks Moderna’s rich mRNA vaccine pipeline.” He reiterated on January 31 an Overweight rating on Moderna, Inc. shares with a $348 price target.

In Q3 2021, 49 hedge funds were bullish on Moderna, Inc., up from 37 funds in the prior quarter. Billionaire Philippe Laffont’s Coatue Management is the biggest Moderna, Inc. stakeholder, with more than 6 million shares worth $2.32 billion.

Here is what Carillon Tower Advisers has to say about Moderna, Inc. in its Q3 2021 investor letter:

“Moderna is a biotechnology company pioneering messenger RNA (mRNA) therapeutics and vaccines. The stock proved to be an impressive contributor once again in the quarter, as investors continue to evaluate the potential for future growth driven primarily by the firm’s revolutionary COVID-19 vaccine. Strong global demand for the vaccine may persist for the foreseeable future in order to maintain immunity as well as provide protection against any additional future variants. The potential for the firm’s mRNA technology to be used in a number of other use cases, specifically influenza, could also provide an additional tailwind for future growth.”

4. Accenture plc (NYSE:ACN)

Number of Hedge Fund Holders: 56

Accenture plc (NYSE:ACN) is a Dublin-based professional services company that provides strategy, consulting, technology, and operations services worldwide. At the end of the third quarter of 2021, 56 hedge funds were bullish on Accenture plc (NYSE:ACN), up from 52 funds in the quarter earlier. Nicolai Tangen’s Ako Capital held the leading stake in Accenture plc (NYSE:ACN), owning a position worth $718.7 million.

On December 16, Accenture plc (NYSE:ACN) reported earnings for the quarter ending November 2021. The company posted an EPS of $2.78, beating estimates by $0.15. Revenue over the period jumped 27.23% year-over-year to $14.97 billion, surpassing estimates by $746.51 million.

Goldman Sachs analyst Brian Essex on January 9 initiated coverage of Accenture plc (NYSE:ACN) with a Neutral rating and a $446 price target. The analyst views Accenture plc (NYSE:ACN) as among the best positioned to benefit from IT services spending “tailwinds” with an ability to maintain a “better quality fundamental profile with more favorable return on invested capital than many of its peers.” However, the stock currently trades at a historical premium, the analyst told investors in a research note.

Similarly, BMO Capital analyst Keith Bachman on December 17 raised the price target on Accenture to $460 from $385 but kept a Market Perform rating on the shares. The analyst stated that while Accenture plc (NYSE:ACN) should retain its leading market position and maintain double-digit growth into FY23, valuation on the stock keeps him on the sidelines.

Here is what Polen Global Growth has to say about Accenture plc (NYSE:ACN) in its Q3 2021 investor letter:

“Accenture continues to perform well as the business has grown through the pandemic. Accenture has benefited as businesses around the world have sought a trusted partner to enable their digital transformation. Those leading in the new world are accelerating investment, while those lagging are investing to close the gap. These are two great examples of the pandemic accelerating trends that were already in motion, making leaders more resilient.”

3. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 106

Netflix, Inc. (NASDAQ:NFLX) is a California-based entertainment services and original production company. Michael Pachter from Wedbush Securities stated on October 16 that despite the solid business fundamentals of Netflix, Inc., the stock is trading at 9-times its revenue, whereas his targets are about 5-times the revenue. He does not believe that Netflix, Inc. is a worthless stock, but simply stated that the shares are overvalued, since the audience will never convert fully to streaming, so the company cannot entirely dominate the sector.

On January 20, Netflix, Inc. reported earnings for the fourth quarter, posting an EPS of $1.33, beating estimates by $0.51. The company’s revenue for the period totaled $7.71 billion, up 16% year-over-year, outperforming estimates by $2.24 million.

Citi analyst Jason Bazinet upgraded Netflix, Inc. on January 31 to Buy from Neutral with a price target of $450, down from $595. Subscriber-based stocks have come under significant pressure and the equity returns now lag the S&P 500 Index since January 2020, the analyst tells investors in a research note. However, his enterprise value per subscriber analysis suggests prevailing equity values don’t assume material sub growth or improving subscriber economics beyond 2023. He believes Netflix, Inc. has “ample pricing power.”

According to the Q3 database of Insider Monkey, 106 hedge funds held long positions in Netflix, Inc., down from 113 funds in the quarter earlier. Fisher Asset Management held a $2.5 billion stake in Netflix, Inc. in the third quarter.

Here is what Rowan Street Capital has to say about Netflix, Inc. in its Q4 2021 investor letter:

“It’s always good to remind ourselves of what we are trying to really do here in the first place?

As we constantly repeat this in almost all annual letters, our goal from day one was to compound our investor’s capital at double-digit returns over the long run.

Now, everyone loves outsized returns. We could compare a strong track record of long-term returns to a fit body. Both need a lot of patience, discipline and both require you to “pay the price.” The reality is that the majority of people lack patience, lack discipline and are just not willing to “pay the price.” We all know what paying the price in fitness really means, but let’s take a look at what that means in investing.

Let’s look at an example of Netflix stock performance since 2010 and compare that to the S&P 500 index. As you can tell from the chart below, the difference over the past 12 years has been absolutely staggering and leaves anyone salivating over these kinds of returns (6,981% for NFLX vs. 312% for the S&P 500).

(Click here to see the charts)

With that, now let’s take a look at the “Cost of Admission” in order to generate these kinds of returns. We want to show you the painful drawdowns over the same time period since 2010. Here, you had a couple of 80% drawdowns back in the 2011-2013 time period, a bunch of 40% drawdowns, and countless 20%+ drawdowns.

So, the question is how many people do you think actually were able to withstand the volatility of Netflix stock over the last 12 years, pay the price and hold it all the way through? During the investment period shown above, Netflix was up almost seventy-fold, and this volatility is the price you had to pay to get it. A lot of market participants are striving for these outsized returns, but just don’t want to pay that price. It seems too risky and they try to cling towards safety without realizing that this is the cost of admission for above average returns.

The good news is that at Rowan Street we do have the patience, the discipline and are very willing to ’pay the price’ in order to achieve the long-term results we have outlined. All that we ask of you, our Limited Partners, is to trust our process and to allow us to do what we do best — compound your hard-earned capital over time. If you can do that, our partnership will work like magic — we are confident in that! In addition, you should derive some comfort in that the majority of our net worth is invested in Rowan Street alongside you (we like to eat our own cooking). We want our partners’ financial fortunes to move in lockstep with ours.”

2. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 120

On November 4, The Satori Fund’s Dan Niles called Apple Inc. (NASDAQ:AAPL) “the most overpriced tech stock”, reasoning that its growth as a big-cap tech stock relative to its multiples does not make sense. In Q3 2021, Apple Inc.’s 5-year compounded revenue growth came in at roughly 11%, whereas other mega-cap tech companies like Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Amazon.com, Inc. (NASDAQ:AMZN) reported revenue growth of 15%, 23%, and 28% over the period, respectively.

Apple Inc. declared on January 27 a $0.22 per share quarterly dividend, in line with previous. The dividend will be paid on February 10, to shareholders of record on February 7.

Apple Inc. published its Q4 results on January 27, posting earnings per share of $2.10, beating estimates by $0.21. The revenue jumped 11.22% from the prior-year quarter to roughly $124 billion, surpassing estimates by $5.41 billion.

Credit Suisse analyst Sami Badri raised the price target on Apple Inc. on January 31 to $168 from $150 and kept a Neutral rating on the shares. The analyst noted that Apple Inc.’s Q4 revenue of $123.9 billion came in ahead versus Street consensus, despite supply constraints that were worse than Q3, while EPS of $2.10 was also above consensus of $1.90. Q1 2022 should set a March-quarter revenue record whilst supply remains constrained, Badri added, but he pointed that growth should decelerate on tough comparisons.

Hedge fund sentiment decreased around Apple Inc. in Q3 2021. Insider Monkey’s third quarter database suggested that 120 hedge funds were bullish on Apple Inc., down from 138 funds in the preceding quarter. Berkshire Hathaway is the leading stakeholder of the company, with more than 887 million shares worth $125.5 billion.

Here is what Alger Spectra Fund has to say about Apple Inc. in its Q4 2021 investor letter:

“Apple is a leading technology provider in telecommunications, computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives tight engagement with consumers and enterprises, fostering the growing purchases of high-margin services like music, apps and Apple Pay. Apple’s quarterly earnings exceeded street estimates on strong margin realization driven by a sales mix of more profitable services. The margin strength was even more impressive given significantly higher freight costs and supply constraints that prevented approximately $6 billion in revenue realization.”

1. Meta Platforms, Inc. (NASDAQ:FB)

Number of Hedge Fund Holders: 248

Meta Platforms, Inc. (NASDAQ:FB) is the parent organization of Facebook, Instagram, and WhatsApp, among other subsidiaries. According to Steve Weiss of Short Hills Capital Partners on February 4, Meta Platforms, Inc. is an overvalued stock and he has cut his position by more than half, and is looking to unload the rest of his shares. He believes that over the years, Meta Platforms, Inc. has become a “hated company” and Facebook users are declining, and investors have better options to invest in tech now. He believes that the metaverse is too far ahead in the future to redeem Meta Platforms, Inc., and the stock will be a “sinkhole” in the meantime.

On February 2, Meta Platforms, Inc. reported earnings for Q4 2021. The company posted an EPS of $3.67, missing estimates by $0.15. Revenue over the period gained roughly 20% year-over-year, reaching $33.67 billion, exceeding estimates by $230.60 million.

KGI Securities analyst Freddy Chen on February 9 downgraded Meta Platforms, Inc. to Neutral from Outperform with a $270 price target.

Among the hedge funds tracked by Insider Monkey in Q3 2021, 248 funds were bullish on Meta Platforms, Inc., down from 266 funds in the quarter earlier. Eagle Capital Management held a prominent stake in Meta Platforms, Inc. in the third quarter, with more than 7 million shares worth $2.4 billion.

Here is what Weitz Investment Management has to say about Meta Platforms, Inc. in its Q4 2021 investor letter:

“A couple of other platform companies deserve a mention as well. Meta Platforms and Alphabet have both been under regulatory scrutiny that has affected their valuations. The threats of punitive action are real, but we have tried to be imaginative about how onerous any fines, rule changes or forced divestitures might be, and we believe that the five year outlook for each is well above average under almost any scenario. So, we include these two in the list of the under-appreciated.”

You can also take a look at 10 Healthcare Dividend Stocks with Over 3% Yield and 10 Best Value Stocks in Warren Buffett’s Portfolio.

Follow Insider Monkey on Twitter