BGC Group (BGC): Obscenely Undervalued Stock to Buy Now With recession fears drifting away, Financials are starting to outperform. Yet the BGC Group (BGC) is still undervalued by 56% making it an easy choice for my Stock of the...
This story originally appeared on WallStreetZen
As part of my original 2025 Stock Market Outlook I said that financials will be outperformers in the year ahead as the Fed lowers rates. Those cuts have been delayed, yet still most experts see another 4 cuts coming in the year ahead.
Another reason to like financials is that the Trump administration has been very vocal about reducing regulation that constrains business. Few industries have as much red tape as the financial industry.
These are 2 very good reasons to buy BGC Group (BGC) for the year ahead. And here are some more good reasons to like this company focused on financial brokerage and technology solutions…
Not only does BGC enjoy a Zen Rating of A (Strong Buy) it actually has a percentile grade of 96.62. This means it’s basically in the top 3.5% of all stocks across the 115 factor review.
As you know with the Zen Ratings we also drill down into 7 component grades to appreciate the full appeal of the stock. In this case it really has no weakness across a broad array of what makes a stock appealing:
Top 25% Momentum
To 17% AI factors
Top 16% Value
Top 12% Growth
Top 11% Financials
That is a lot of goodness packed inside the stock which points to strong odds of future outperformance.
On the value front I want to note that shares rocketed to $11.79 in November after the election along with gains for their financial peers. Since then shares have gotten as low as $7.24 in early April as the market was on the brink of bear market territory.
Since then shares have rebounded nicely to its current perch around $9.25. And yet as you look at Wall Street analyst insights they are pounding the table on the amazing value proposition.
Here we find that the average target price is $14.50. That’s a whopping 56% above current levels.
Yet given their history of impressive beat and raise earnings reports, I would not be surprised for shares to take a shot at $20 by the end of 2026.
Truly I think that few stocks offer the upside reward of BGC with fairly modest downside risk making it one of my favorite picks for the year ahead.
What To Do Next?
BGC Group (BGC) is just one of the stellar stocks found in my Zen Investor portfolio.
Plus this Wednesday morning June 4th I will unveil the next 2 buy rated stocks I have hand picked for the Zen Investor portfolio.
This is where I use my greater than 40 years of investing experience to select the best Zen Ratings stocks for the current market environment.
I have just lined up 2 perfect stocks to excel in the year ahead and can’t wait to share them with you on Wednesday.
Beyond those 2 new picks you will also find 18 other top Zen Rated stocks currently in my portfolio that have triple digit upside potential.
Learn more about my stock picking process and how you can save up to 50% on the subscription price.
Discover the Zen Investor portfolio + Top Picks + Special Savings >
Wishing you a world of investment success!
Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
Editor of the Zen Investor
What to Do Next?
