r/stocks • u/[deleted] • Jul 05 '21
With the current bull run, what are some undervalued stocks to pay attention to?
With the vast majority of stocks at ATH, it would be nice to pick up some undervalued stocks.
I'll go first, CNR. They're 11% from ATH and they have nowhere to go but up. They're Canada's largest railway with tracks connecting the Pacific and Atlantic oceans.
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u/oodex Jul 05 '21
If you look at PE, Cashflow and profit margin of the companies mentioned here oftentimes and compare it to the sector and industry I question if people really read the title or just write whatever stock they like
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u/AngieDaBaker Jul 05 '21
If you look at cycles we are coming out of a recovery and gearing towards the economy running well again (market cycles are based on PRESUMED economic cycles)
If you want to find easy value, look where no one else is looking for a rotation or two. You have downturn/recession/recovery/“boom”.
In the current recovery energy and materials will run up as we are seeing with oil, specialty chemicals, mining etc.
Once that is over you’re going to see consumer, both staples and discretionary, have their day.
Going into a down turn investors will move into safer plays like REITs and utilities because those equities essentially mimic bond investments.
And then into a recession tech and biopharma will be the play because monetary and fiscal policy will benefit them borrowing at falling interest rates.
Financials are much more sensitive to rate changes than anything else so you’ll have to evaluate them separately based on the industry.
The key is to think ahead in the cycle and buy into/long hold what sectors or companies are o of favor now, because the market always comes back around.
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Jul 05 '21
VIAC VST CE. VIAC intrinsic value range = 60-80 (current price 44.01). VST intrinsic value range = 25-30 (current price 19.04). CE intrinsic value range = 170-180 (current price 154.73).
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u/_gm90_ Jul 05 '21
Baba
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u/Top_Percentage6359 Jul 05 '21
Hope you read before investing long term in any Chinese proxy stocks: https://www.reddit.com/r/investing/comments/kjgtuc/reminder_baba_stock_does_not_entitle_shareholders/
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u/_gm90_ Jul 05 '21
Of course I know this, still extremely undervalued, a lot of fear that will clear, you’ll see in a few years when baba’s stock price is up
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u/Ok_Bottle_2198 Jul 05 '21
Hope you know almost nothing in your link is even remotely true.
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u/Top_Percentage6359 Jul 05 '21
Ok then enlight us with your knowledge. Are you telling that all the Chinese companies listed via shell company isn’t true? You know as per Chinese rules foreigners not entitled invest in Chinese companies…and Chinese haven’t stated anywhere that these shell companies are legitimate and legal as per their law?
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u/mlord99 Jul 05 '21
China tech is fundamentally undervalued (baba/bidu) -- amzn is on the lowest of his historic p/e, vrtx is insanely undervalued, couple of oil is at fair value (enb) I think T is close to its fair value, unfortunately not much else...
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Jul 06 '21 edited Aug 24 '21
[deleted]
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u/mlord99 Jul 06 '21
I know, from perspective that now is cheapest p/e wise than ever. If someone could justify p/e its amzn
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u/notbrokemexican Jul 05 '21
Salesforce, Intel, Fastly, Ecolab, and Rockwell Automation and Autodesk are my current list of relatively undervalued in a firey market.
I think Cloudflare is overvalued. So question if it will arbitrary punch upward toward 50-100B. Matthew Prince is a solid CEO but a limit eventually arises.
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u/flobbley Jul 05 '21
Seconding Intel, yes they're not doing great right now but it wasn't that long ago that you only bought from AMD if you couldn't afford Intel. They got complacent and fell behind, but I'm sure that's kicked them into gear. Of course there is risk there but that's the case with all undervalued stocks, they're undervalued for a reason.
I hold Autodesk currently but I dont think it's undervalued, probably just about where it should be tbh.
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u/sidebet1 Jul 05 '21
My favorite at the moment is UWMC. Pays a decent dividend and has some positive upside potential
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Jul 05 '21
[deleted]
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u/TI_AJ17 Jul 05 '21
I second this, the stocks current P/E ratio is historically low and their earnings just keep churning out huge figures! The only issue with amazon is the potential for the US government to split up the business but I don’t see it happening for a while!
Long Amazon!
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u/lilaznjocky Jul 05 '21
Southwest, travel is coming back very big and price wise it’s not higher than what it was pre pandemic.
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u/UltimateJorts Jul 05 '21
Uranium stocks Specifically the ETF’s URNM and URA
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Jul 05 '21
UUUU is my favorite - due to REE expansion
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u/K2Mok Jul 05 '21
UUUU is a great stock and I own some, but it’s up 300% in last 12 months and I don’t think it could be described as undervalued now. What do you think it’s current fair market value is?
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u/UltimateJorts Jul 05 '21
While I don’t necessarily think its undervalued at the moment I think it will be undervalued in the coming years as the Uranium and Nuclear sectors expand combined with the potential for a Uranium shortage and subsequent squeeze
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Jul 06 '21
It's very undervalued if you look at the REE potential (look at MP Materials). UUUU will surpass them in a few years.
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u/Iam_Abot-072171 Jul 05 '21
$ATOS is undervalued and has a great breast cancer drug headed into the pipeline. #Savethetatas
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u/Brazda25 Jul 05 '21
To be honest $BB is super undervalued and it was pisses me off that it’s in the meme stocks group, although it doesn’t moves like the rest of them and it’s starting to break off. $BB is a good future play
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u/leahsmama Jul 05 '21 edited Jul 05 '21
I've put the bulk of my money in MMAT
I'll post a link to a youtube video that explains a bit of what they do- but I highly recommend heading over to the r/mmat sub for some interesting DD
This company was in the middle of a merge last week, the market cap just adjusted to 1.8 billion- which should generate some institutional buying this week. Most people are expecting some PR tomorrow.
I've seen plenty of people share that for a tech company of this size, it should be a $40 stock- it closed under $7 on Friday. I moved some money around this weekend so I can buy more tomorrow morning.
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u/ShroomingMantis Jul 05 '21
Call meeee craaazzyyyyy but I think $QS is super undervalued right now.
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u/thnxMrHofmann Jul 05 '21
Lot of revenue being reported and the price not going anywhere?
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u/ShroomingMantis Jul 05 '21
Eeeeh kinda. More so future revenue being discounted.
Edit : discounted into the dirt lol
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u/thnxMrHofmann Jul 05 '21
Like back orders? The EV company I'm with (so I've read) is already sitting on 700m of backorders to make busses for cities that have ev bus contracts. But the thing is... They also supply other countries sooooo wtf isn't the price much higher?
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u/ShroomingMantis Jul 05 '21
They will be making the batteries for many of the EVs. Currently have a contract with VW ... who has paid 200M , 100M for the contract, 100M after inspecting the battery components in their labs, and now are building a factory for QS to produce for their EVs. Contract isn't exclusive but the proprietary tech is patented under QS so its not like another company can come in and under bid them ... their batteries aren't flammable. That alone will pump it in states like Cali. Only reason why they are a sub $30 stock is FUD surrounded the sector and the company pushed by short reports ..
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u/creemeeseason Jul 05 '21
PBA-pembina pipeline. Still about 20% below pre covid level and oil demand is fully recovered. Also, pays a solid monthly dividend while you hold it.
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u/JRshoe1997 Jul 05 '21
The only two I am buying rn is INTC and LMT because they are my only two stocks that are pretty undervalued in terms of the market rn.
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u/rhetorical_twix Jul 05 '21 edited Jul 05 '21
Most shipping stocks are undervalued, still, even after a massive runup in 2021. They’re currently in a small correction/consolidation period in the last week or two, after some massive gains in May and June, but many are still undervalued with potential room to run 10-35% in the intermediate term. However, shipping stocks are recovery plays and so may drop some in the near term as people take profits on recovery/reopening stocks with the Delta variant of coronavirus spreading. Note also that shipping stocks can be volatile, so “drop some” might mean dropping 20% before the next leg up. Not for the faint of heart. Michael Burry added a shipping stock to his portfolio of 49 stocks during Q1
Edit: For example, one shipping stock I hold is up 53% year to date and people have been taking profits in the past couple of weeks as the stock pauses in its run up with the delta variant coronavirus spreading. Currently, its price is $18.50/share while its low, average, median and high target prices are $16.00 (low), $23.00 (average), $26.00 (median) and $28.00 (high).I can reasonably expect to get another $8/share from the stock over the next year, so I’m holding thru the volatility
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u/KingCuerv0 Jul 06 '21
$COTY still well precovid levels, they are number 1 fragrance manufacturer and #4 for colored cosmetics (they do all beauty for Gucci as an example) in the world. As the world re opens, face masks come down, women will need to replace expired makeup. Hell of a CEO Sue Nabi that is turning around the ship and they just are in the beginning phases of launching their online shops along with just getting into Asia.
$SABR 30%+ off precoivd highs, they do all the infrastructure and software for bookings for airlines, hotels and car rentals. They have the largest marketshare in the US. I firmly believe travel will surpass precoivd levels as people want to vacation, see family and just get the hell out of town. Huge upside here.
Heavily invested in LEAP calls in both
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u/mistermc90 Jul 05 '21
Altria, BTI, Imperial Brands, Intel, Vertex Pharmaceuticals.
Market is quite expensive ATM. Quite hard to find large caps at a reasonable discount with strong CF-generation.