High inflation and a resurgence of COVID-19 cases have led to market volatility. However, as the benchmark indexes are hovering near their all-time highs thanks to the impressive corporate earnings, many stocks are trading at sky-high valuations. However, Dow (DOW), POSCO (NYSE:PKX), AutoNation (NYSE:AN), and Penske Automotive (PAG) have immense growth potential but are currently trading at discounts. So, it could be wise to scoop up their shares now.After a solid rally earlier this year, value stocks have lagged behind the growth stocks over the past few months. The major stock market indexes got a boost from strong corporate earnings results. However, the market has remained volatile due to the resurgence of COVID-19 cases worldwide.
Uncertainty regarding the timing of the Federal Reserve’s tapering activities and high inflation concerns have also contributed to the market volatility. With most stocks trading at lofty valuations, it isn't easy to find true value stocks right now. But some quality stocks are still trading at reasonable valuations. Moreover, according to a CNBC survey, nearly 70% of the respondents said that value stocks would do better than their growth counterparts in the upcoming months.
Dow Inc. (DOW), POSCO (PKX), AutoNation, Inc. (AN), and Penske Automotive Group, Inc. (NYSE:PAG) are four quality stocks that hold immense growth potential. Their shares are currently trading at lower valuations compared to their peers. In addition, our proprietary POWR Ratings system has rated these stocks Strong Buy. So, it could be wise to bet on them now.