The year 2025 has once again illustrated how sudden market plunges can be golden opportunities for cool-headed investors.
The sank over 20% from mid-February to early April, hitting lows near 4,800, before roaring back more than 35% in just four months.
Most stocks followed suit, with many outpacing the index. was one of the stocks that outperformed. The halved during the slump, then rallied sharply, beating the broader index by a wide margin.
Buying the dip looks obvious in hindsight, but doing so amid widespread fear required absolute conviction. More importantly, investors needed to focus on companies with strong fundamentals and high growth potential.
How Fair Value Can Help Investors Seize Opportunities Like Delta Air Lines
Unlike the oversimplified P/E ratios or basic valuation models that many investors rely on, the Fair Value tool takes into account the hidden risks and overlooked opportunities that others fail to see, thanks to a powerful combination of industry-recognized valuation methods that go far beyond single-model calculations.
In the case of Delta Air Lines, Fair Value signaled a potential upside of nearly 45% on April 11. That upside potential has since been surpassed, with the stock gaining 56.91% since that date.
The stock has indeed been supported by several bullish factors, including strong Q2 results published on July 10.
Delta Air Lines’ fair value of $61.33 (+0.2% upside potential at September 5 close) now suggests that the stock is correctly valued.
Source: InvestingPro
However, many other stocks are currently highly undervalued and show double-digit potential according to InvestingPro’s Fair Value tool.
How to Find Undervalued Opportunities in the Current Market?
To find these opportunities, InvestingPro members can visit the Undervalued Stocks page on the Investing.com portal.
This page offers a list of undervalued opportunities with solid potential based on Fair Value, among other qualities. Currently, for example, the page features 10 stocks with upside potential of over 30%.
Similarly, InvestingPro members also have access to a list of Overvalued Stocks, which, on the other hand, have far exceeded their fundamental value, and are therefore prone to a correction.
In its latest update, this page displays 10 stocks with a downside potential of more than 20% according to InvestingPro Fair Value.
NOTE: Only InvestingPro members can view the stocks listed on these pages.
There are many other ways to use InvestingPro Fair Value to find market opportunities:
- The Fair Value of each stock can be consulted on its page on Investing.com or the InvestingPro platform.
- Bullish/bearish potential, according to InvestingPro, Fair Value can be used as a stock search criterion on the screener.
- All stock lists on the Investing.com website (Top risers/fallers, index components, ETF components, etc.) display the upside/downside potential according to the Fair Value for each stock they contain.
And it’s not just Wall Street giants: Fair Value covers all global markets, helping you make smarter, faster investment decisions, wherever you are.
Conclusion
InvestingPro’s Fair Value may have helped many investors profit from the market plunge earlier this year, highlighting opportunities like Delta Air Lines and many others, and helping investors stay focused on fundamentals when the market panics.
However, it’s not a magic bullet, but simply a practical way to determine whether a stock is overvalued or undervalued based on recognized financial models, allowing investors to identify bargains and steer clear of overvalued stocks.