Midcap Stocks to Invest: If a stock has a high PE in the stock market, then it is considered an expensive stock, which may fall further, whereas a stock having a low PE is considered a fair value stock. Long term investors can earn by investing in such stocks. Currently the preferred stocks include Oil India, Canara Bank, Power Finance Corporation. These stocks come in different industries and investors can earn up to 40% in these midcaps.
The broker is currently giving a target price of Rs 302 on Oil India shares. Presently this share is at the level of Rs. That is, there can be an increase of 19 percent in Oil India from the current level. The PE of the stock is 3.1 against the industry PE ratio of 5.6.
Shares of Power Finance Corp (PFC) is currently trading at 201 with an average target price of Rs. There are 218. PFC shares can have an upside of 9 per cent at the current market price. The stock has a PE of 3.3 against the power industry average PE of 31.3. Means PFC’s share is being available cheaply.
It also has a buy recommendation on REC stock now with a target price of Rs. 181 while this stock trades at 151. From here this share can increase up to 19 percent. The stock is trading at a PE of 3.6. General Insurance Corporation stock is currently trading at 182 but it has an average target price of Rs. 208 runs. At the current market price, the stock can grow up to 14 per cent with PE of 4.6 as compared to industry PE of 28.8.
Canara Bank stock is currently trading at 297 and has a target price of Rs. 371 has been given. At the current price, this stock can rise up to 25 percent. Currently, the PE of the stock is 4.8. Other reasonably priced stocks include NMDC, which is currently priced at Rs. 108 and target price Rs. There are 134. From here this share can increase up to 25 percent. The PE of the stock is 5.6 as against the industry PE of 11.1.
Union Bank of India stock is currently trading at 70 and has a target price of Rs. There are 89. This stock can increase up to 25 percent from the current level. The stock has a PE of 5.6 as against industry PE of 18.4. Bank of India is also included in this list, whose current price is Rs 10,000. 73 and the target price is Rs. 104 is given. From here, Bank of India’s share can increase by 41 percent. The PE of this stock is 7.8 while the PE of the entire industry is running at 18.4.
