Trump tariffs and the related fears of a recession ahead pushed the S&P 500 index into correction territory this month, creating quite a few buying opportunities in the process.
But some of the names on the benchmark index have sold off relatively harder and are now trading at significant discounts to their historical valuations.
Here are the top two quality stocks that you can load up on currently at a massive discount to their average price-to-earnings ratio over the past five years.
Amazon.com Inc (NASDAQ: AMZN)
Amazon stock has lost about 20% since early February due to macroeconomic headwinds and concerns that AI spending could slow down as we advance through the remainder of 2025.
The titan’s current price-to-earnings ratio sits about 38% below its average multiple over the past five years.
That’s part of the reason why JPM recently reiterated AMZN as a top pick for this year.
Analysts at the investment firm expect Amazon to tap on low prices and a huge selection of items to grow its market share if the US economy does indeed slide into a recession in 2025.
Amazon shares remain worth owning this year also because the giant continues to demonstrate financial strength.
In its latest reported quarter, the Nasdaq-listed firm came up with $1.86 a share of earnings on $187.8 billion in revenue.
Analysts, in comparison, were at $1.49 only and $187.3 billion, respectively.
Amazon has invested rather aggressively to diversify its business over the years. Its high-margin advertising business brought in a staggering $17.3 billion in its fiscal Q4.
Note that JPMorgan isn’t the only one that’s bullish on the AI stock. The consensus rating on Amazon also currently sits at “buy”.
Devon Energy Corp (NYSE: DVN)
Another high-quality stock that’s currently trading at a deep discount to its historical valuation is Oklahoma headquartered Devon Energy.
Versus their 52-week high, shares of the hydrocarbon exploration firm are currently down about 30%, which is why DVN’s price-to-earnings ratio now sits about 33% below its average multiple over the past five years.
Much like AMZN, Devon stock is also worth buying for the strength of its financials. In its fiscal Q4, the NYSE-listed firm earned $1.16 on a per-share basis – well above $1 per share expected.
At $4.4 billion, the company’s revenue also came in handily above Street estimates in the fourth quarter.
At the time, Devon’s board also raised the fixed dividend by 9%, “reflecting confidence in the energy outlook and DVN’s future free cash flows.”
That’s why Wall Street currently has a consensus “overweight” rating on Devon shares as well.
Analysts have an average price target of $49.48 on the energy stock which indicates a potential upside of close to 40% from current levels.
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