Amazon, Target, and Nvidia: Value Stocks in a Market Near All-Time Highs
Despite the stock market hitting all-time highs, investors can still find value in certain companies. Three such names are Amazon (AMZN), Target (TGT), and Nvidia (NVDA). These stocks have been undervalued relative to their growth prospects.
Amazon's P/E ratio has fallen despite a rising stock price. Its net sales climbed 20% yearly to $201 billion in the second quarter of 2026, with all three segments growing net sales in the double digits. AWS revenue increased by 37% over that period. However, Amazon is raising capital expenditures (capex) spending from $200 billion to $220 billion.
Target has recovered from supply chain issues and store renovations. Its P/E ratio is around 20 compared to Walmart's 40. Target offers a 3.1% annual dividend yield, which is much higher than the S&P 500 average of 1%. Nvidia has seen its stock price rise by over 1,800% since its low in 2022 and dominates the AI accelerator market with at least 75% market share.
Nvidia's net income rose 211% year-over-year to $58 billion in the first quarter of fiscal 2027. Its P/E ratio is 34, which may seem high but is actually very low considering its growth rate. However, Nvidia's large size means it will struggle to achieve another 1,800% gain over a short period.