3 Low P/E Stocks with Over 20% Upside and Solid Dividends – MTDR, COPA, and LAD

We used the TipRanks Stock Screener Tool, to determine three mid-cap companies with low Price-to-Earnings (P/E) ratios, a Strong Buy consensus rating, and a TipRanks Smart Score of 8, 9, or a Perfect 10, indicating a high probability of outperforming market expectations. Each of these stocks also offers more than 20% upside potential within the next twelve months, making them attractive investment opportunities.TipRanks Cyber Monday Sale Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence. Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off Investing in low P/E stocks is beneficial because these stocks are undervalued compared to their earnings, meaning you pay less for each unit of profit. This offers a margin of safety, reducing potential losses if the market drops. Investors often prefer stocks with growth potential even if their P/E ratio is higher, betting on future earnings increases. However, low P/E stocks have historically provided better returns and lower risk than high P/E stocks. Such stocks usually pay higher dividends, have steady and reliable businesses, grow slowly but consistently, and have less volatility. Here Are This Week’s Low P/E Stocks Matador Resources (MTDR) – Matador Resources has a P/E ratio of 6.8x, about 52% lower than its sector median and 23% lower than its own five-year average. On TipRanks, the average Matador Resources price target of $57.25 implies 35% upside potential from current levels. Matador Resources is an independent oil and gas exploration company with major exposure to the Permian Basin. The company recently reported record production and demonstrated strong financial health with nearly $2 billion in liquidity and a low leverage ratio below 1.0x as of September 30, 2025. MTDR pays regular quarterly dividend of $0.375 per share, reflecting a solid yield of 3.1%. It has a strong operational focus on growth and increased its 2025 production guidance, which supports a near-term growth catalyst. Copa Holdings (COPA) – COPA has a P/E ratio of 7.5x, significantly lower than its sector median of 20.79x and its own historical average of 8.7x. On TipRanks, the average Copa Holdings price target of $161 implies 32.2% upside potential from current levels. Copa Holdings is a Panama-based airline holding company that provides passenger and air cargo transportation. For Q3FY25, it reported strong financial performance, including an 18.7% year-over-year rise in net profit to $173.4 million, higher earnings per share (EPS), improved margins, a record 88% load factor, 5.8% capacity expansion, rising revenue per available seat mile (RASM), and reducing operating costs per available seat mile (CASM). The company is also expanding its fleet and paying consistent dividends, reflecting confidence in future prospects. Currently, COPA carries an above industry-average dividend yield of 5.29%, paying $1.61 in quarterly dividends. Lithia Motors (LAD) – LAD has a P/E ratio of 9.2x, considerably lower than the sector median and its historical average. On TipRanks, the average Lithia Motors price target of $386.78 implies 21.2% upside potential from current levels. Lithia Motors operates a major network of car dealerships that sell new and used vehicles. It also offers repair and maintenance, parts sales, and financing options. In Q3FY25, Lithia reported revenues of $9.7 billion and a 17% growth in adjusted EPS. The company has a clear growth strategy targeting $40 billion to $50 billion in mid-term revenue and $75 billion to $100 billion long-term, driven by operational efficiencies, disciplined acquisitions, and an expanding finance portfolio. LAD also pays quarterly dividend of $0.55 per share, and undertakes regular stock buybacks, repurchasing 5.1% of outstanding shares in Q3. To find more stocks like these, explore TipRanks’ Stock Screener Tool, which provides an updated list of stocks that can be filtered and scanned using various parameters.