Spotting a bargain in the stock market isn’t as easy as it looks. There’s a difference between “cheap looking” and cheap. A rock-bottom price-to-earnings ratio, for example, isn’t enough on its own to make a stock a bargain. If earnings are set to tumble, ratios and metrics won’t tell you the whole story.
These two stocks look like genuine bargains, based on their long-term potential rather than their current results. Both companies are going through turnarounds, and improving investor sentiment could drive major rallies this year.
This post originally appeared at The Motley Fool.