3 Stocks That Are Still Cheap in This Market

With the market having reached new highs recently, and then tumbling a bit, many investors have begun worrying that this is the beginning of the next major market pullback. In this video, Motley Fool financial analyst Matt Koppenheffer discusses why runaway valuation levels might be a more important indicator that a pullback is about to happen. He compares valuations from companies in the S&P 500 today, vs. the valuations those companies had in 2006 leading up to the market meltdown in 2008. Matt thinks banks in particular look undervalued at the moment, and he takes a look at three banks with especially low price to tangible book value ratios.

One of the banks Matt takes a look at is Bank of America. Bank of America's stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy, and as an added bonus, you'll receive a full year of FREE updates and expert guidance as key news breaks.

The article 3 Stocks That Are Still Cheap in This Market originally appeared on Fool.com.

Matt Koppenheffer owns shares of Bank of America. The Motley Fool owns shares of Bank of America, General Electric, and Oracle. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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