September 2024's Top Stock Picks Estimated To Be Trading Below Fair Value
In This Article:
As global markets navigate mixed trading and subdued inflation, value stocks have recently outperformed growth shares, presenting potential opportunities for discerning investors. In this environment, identifying undervalued stocks can be particularly rewarding, as these picks are estimated to be trading below their fair value and may offer significant upside when market conditions stabilize.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Imeik Technology DevelopmentLtd (SZSE:300896) | CN￥136.77 | CN￥273.40 | 50% |
| Venus Pipes and Tubes (NSEI:VENUSPIPES) | ?2219.20 | ?4433.74 | 49.9% |
| Shanghai Baolong Automotive (SHSE:603197) | CN￥32.15 | CN￥64.19 | 49.9% |
| EQT (NYSE:EQT) | US$32.82 | US$65.40 | 49.8% |
| Progress Software (NasdaqGS:PRGS) | US$57.68 | US$115.30 | 50% |
| WuXi XDC Cayman (SEHK:2268) | HK$19.74 | HK$39.31 | 49.8% |
| Shanghai INT Medical Instruments (SEHK:1501) | HK$28.25 | HK$56.36 | 49.9% |
| Vitesse Energy (NYSE:VTS) | US$24.62 | US$49.20 | 50% |
| Manorama Industries (BSE:541974) | ?835.90 | ?1665.51 | 49.8% |
| Chengdu Olymvax Biopharmaceuticals (SHSE:688319) | CN￥8.43 | CN￥16.82 | 49.9% |
We'll examine a selection from our screener results.
Jumbo
Overview: Jumbo S.A. operates retail stores selling toys, baby products, household items, and more across Greece, Cyprus, Bulgaria, and Romania with a market cap of €3.31 billion.
Operations: Revenue from retail sales of toys and hobby stores amounts to €1.08 billion.
Estimated Discount To Fair Value: 17%
Jumbo is trading 17% below its estimated fair value of €29.28, suggesting it may be undervalued based on cash flows. Despite a strong earnings growth of 21.9% over the past year, future earnings growth is expected to be modest at 5.7% annually but still outpacing the Greek market's 2.6%. However, its high dividend yield of 12.63% is not well covered by free cash flows, indicating potential sustainability issues in the long term.
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Our growth report here indicates Jumbo may be poised for an improving outlook.
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Click to explore a detailed breakdown of our findings in Jumbo's balance sheet health report.
Hapvida Participa??es e Investimentos
Overview: Hapvida Participa??es e Investimentos S.A., with a market cap of R$33.27 billion, operates in the health sector in Brazil through its subsidiaries.
Operations: The company generates R$27.33 billion in revenue from providing medical and dental assistance.
Estimated Discount To Fair Value: 12.1%
Hapvida Participa??es e Investimentos is trading at R$4.55, below its estimated fair value of R$5.18, indicating it could be undervalued based on cash flows. Despite a net loss of R$381.35 million in Q2 2024, the company is expected to become profitable within three years and has an annual revenue growth forecast of 8.1%, outpacing the Brazilian market's 7.8%. Recent inclusion in the Brazil Valor BM&FBOVESPA Index may boost investor confidence.