Big Stocks, Big ‘Fair Value’ Upside (LOW, SONC, DFS, UNH, KLAC, AMAT, GE, DVN, APOL, NRG)

We have pulled a few of the major names here to highlight the largest upside in each category, and provided a direct link for each to see the logic and reasoning behind the calls from each individual analyst.

In the consumer sector, both Lowe’s Companies (NYSE: LOW) and Sonic Corp. (NASDAQ: SONC) were both shown to have close to 50% upside to the fair value estimates.

In the bank and financial stock sector, Discover Financial Services (NYSE: DFS) was given a fair value that is nearly 80% higher than today’s prices.

Imagine healthcare stocks having upside.  Morningstar has tried to smooth out the effects of the healthcare reform and has the view that UnitedHealth Group, Inc. (NYSE: UNH) was about 50% higher to a fair value estimate.

In technology, Morningstar saw close to 50% upside to fair value in KLA-Tencor Corporation (NASDAQ: KLAC) and Applied Materials Inc. (NASDAQ: AMAT).

In the industrial sector, Morningstar sees General Electric Co. (NYSE: GE) having more than 35% upside to fair value.

In the energy patch, Morningstar showed that Devon Energy Corporation (NYSE: DVN) has almost 50% upside to an implied fair value estimate.

In the business and financial services picks, the pick of Apollo Group Inc. (NASDAQ: APOL) seems unusual considering its recent woes despite beating earnings.  But Morningstar gives close to 70% implied upside to a a fair value estimate here.

For the lagging utilities sector, Morningstar believes a fair value estimate for NRG Energy, Inc. (NYSE: NRG) is approximately 75% higher than current share prices.

Estimates fair value prices are those of Morningstar, which we used to derive the implied upside to today’s share prices.

Jon C. Ogg