Undervalued Stocks

Q: What are undervalued stocks?

Undervalued stocks trade at prices below their estimated intrinsic value. This means the market price does not fully reflect the company's assets, earnings power, or growth potential. Common indicators include a low P/E ratio relative to industry peers, price below book value, high free cash flow yield, and analyst price targets significantly above the current price. Identifying truly undervalued stocks requires thorough fundamental analysis.

Q: How to find undervalued stocks?

Start by screening for stocks with low P/E ratios, high dividend yields, and prices below analyst consensus targets. Then dig deeper — examine the balance sheet for hidden assets or excessive pessimism, check if earnings are temporarily depressed, and evaluate the competitive position. Warren Buffett's approach focuses on companies with durable competitive advantages trading at reasonable prices, not just statistically cheap stocks.

Q: What is value investing?

Value investing is a strategy of buying stocks for less than their intrinsic worth and holding them until the market recognizes their true value. Pioneered by Benjamin Graham and refined by Warren Buffett, it emphasizes a margin of safety — buying at enough of a discount that even if your analysis is partially wrong, you still avoid losing money. Value investors focus on fundamentals like earnings, assets, and cash flow rather than market trends or momentum.

Q: What is a value trap?

A value trap is a stock that appears cheap but continues declining because its fundamental problems are worse than they appear. Common value traps include companies in secular decline (like traditional retail facing e-commerce disruption), companies with excessive debt, and cyclical businesses at peak earnings. To avoid value traps, focus on companies with strong balance sheets, stable or growing free cash flow, and competitive positions that can withstand industry changes.

Q: What is intrinsic value?

Intrinsic value is the estimated true worth of a company based on fundamental analysis, independent of its current market price. Methods for calculating it include discounted cash flow (DCF) analysis, sum-of-the-parts valuation, and asset-based approaches. Different analysts may arrive at different intrinsic value estimates using different assumptions. The concept is central to value investing — the gap between intrinsic value and market price represents the opportunity or risk.

Q: Are undervalued stocks good for beginners?

Value investing requires patience and fundamental analysis skills, which can be challenging for beginners. However, the core principle of buying quality at a discount is sound for any investor. Beginners might start with value-oriented ETFs like the Vanguard Value ETF (VTV) or iShares Russell 1000 Value ETF (IWD) rather than picking individual undervalued stocks. As skills develop, individual stock selection can potentially add higher returns.

Q: How long does it take for undervalued stocks to recover?

There is no guaranteed timeline for value realization. Some undervalued stocks recover in weeks after a catalyst like strong earnings, while others remain depressed for months or years. Academic research suggests value strategies typically outperform over 3-5 year periods, though they can underperform for extended stretches. Catalysts that unlock value include management changes, activist investors, earnings turnarounds, spin-offs, and industry tailwinds.

Stocks trading below their analyst price target with P/E under 20. Wall Street thinks these are cheap — the market hasn't caught up yet.

200 stocks Updated Feb 8, 2026

$4.71T Total Market Cap

13.3 Avg P/E Ratio

— Avg Dividend Yield

+0.00% Avg Daily Change

Undervalued stocks are shares trading below their estimated intrinsic value based on fundamental analysis. These companies may be overlooked by the market due to temporary setbacks, sector rotation, or simply flying under investors' radar. Finding genuinely undervalued stocks is the core principle of value investing, a strategy pioneered by Benjamin Graham and popularized by Warren Buffett.

Identifying undervalued stocks involves analyzing metrics like P/E ratio, price-to-book, price-to-free-cash-flow, and comparing them to industry averages and historical norms. A stock may be undervalued because the market is overly pessimistic about its prospects, because it operates in an out-of-favor sector, or because its true earnings power is obscured by temporary charges or investments.

This list screens for stocks with attractive valuation metrics combined with strong fundamentals — low P/E ratios relative to earnings growth, prices below analyst targets, and solid financial health. Data is updated daily from market sources.

#	Symbol	Name	Price	P/E	Upside %	Consensus	Analysts	Market Cap
1	PAGS	Pagseguro Digital Ltd-Cl A	$10.99	7.5	+200.0%	Buy	19	3.20B
2	OCFC	Oceanfirst Financial Corp	$19.78	16.0	+198.4%	Buy	12	1.14B
3	FITB	Fifth Third Bancorp	$55.08	19.9	+198.0%	Hold	32	50.20B
4	JBS	Jbs Nv-A	$15.82	7.9	+196.3%	Hold	13	16.90B
5	WFC	Wells Fargo & Co	$93.97	13.5	+194.6%	Buy	29	287.85B
6	MAT	Mattel Inc	$21.49	15.5	+194.3%	Buy	19	6.68B
7	SEE	Sealed Air Corp	$41.82	13.6	+193.8%	Hold	17	6.16B
8	MARA	Mara Holdings Inc	$8.24	3.4	+193.3%	Buy	21	3.12B
9	INTR	Inter & Co Inc - Cl A	$8.87	16.8	+189.3%	Strong Buy	15	3.90B
10	BIRK	Birkenstock Holding Plc	$38.45	17.2	+186.7%	Strong Buy	26	7.07B
11	BANC	Banc Of California Inc	$20.85	14.2	+185.4%	Strong Buy	17	3.24B
12	MET	Metlife Inc	$76.38	13.1	+183.3%	Buy	22	50.33B
13	NVGS	Navigator Holdings Ltd	$18.23	11.6	+182.6%	Strong Buy	14	1.19B
14	APA	Apa Corp	$27.46	6.5	+181.9%	Buy	11	9.74B
15	BMY	Bristol-Myers Squibb Co	$61.99	17.9	+181.5%	Hold	34	126.20B
16	ACIW	Aci Worldwide Inc	$42.28	16.7	+180.6%	Strong Buy	13	4.36B
17	EMA	Emera Inc	$49.37	17.6	+179.3%	Buy	12	20.73B
18	WBS	Webster Financial Corp	$73.13	11.1	+174.7%	Hold	18	11.11B
19	ES	Eversource Energy	$67.36	18.8	+174.4%	Buy	12	25.27B
20	CSTM	Constellium Se	$24.74	15.7	+173.0%	Strong Buy	10	3.41B
21	WSBC	Wesbanco Inc	$37.89	15.6	+172.4%	Buy	13	3.47B
22	KBR	Kbr Inc	$43.49	14.5	+172.2%	Buy	13	5.52B
23	TPH	Tri Pointe Homes Inc	$35.46	9.8	+171.8%	Hold	11	3.05B
24	FISV	Fiserv Inc	$60.00	9.0	+171.6%	Hold	41	32.27B
25	EXEL	Exelixis Inc	$43.90	17.4	+164.5%	Hold	15	11.77B
26	SMPL	Simply Good Foods Co/The	$17.33	17.7	+162.3%	Buy	18	1.60B
27	FOX	Fox Corp - Class B	$58.35	12.8	+162.3%	Hold	15	26.06B
28	EXC	Exelon Corp	$44.33	15.9	+162.0%	Hold	15	44.79B
29	UNM	Unum Group	$74.56	16.9	+160.8%	Buy	25	12.48B
30	AHL	Aspen Insurance Holdings-A	$37.33	8.8	+157.1%	Hold	11	3.43B
31	CDNA	Caredx Inc	$19.47	16.5	+155.8%	Buy	15	1.00B
32	FFBC	First Financial Bancorp	$30.90	12.6	+154.0%	Buy	13	3.23B
33	CTRA	Coterra Energy Inc	$30.66	14.1	+152.6%	Hold	25	23.26B
34	HRMY	Harmony Biosciences Holdings	$37.27	11.6	+150.9%	Strong Buy	17	2.15B
35	UPBD	Upbound Group Inc	$20.54	14.1	+150.9%	Strong Buy	14	1.19B
36	G	Genpact Ltd	$40.39	12.6	+150.5%	Buy	20	6.96B
37	WLY	Wiley (John) & Sons-Class A	$29.24	15.3	+150.4%	Strong Buy	5	1.56B
38	MTDR	Matador Resources Co	$47.35	7.5	+147.7%	Strong Buy	28	5.88B
39	CSWC	Capital Southwest Corp	$23.19	16.1	+147.6%	Buy	14	1.40B
40	SOLS	Solstice Adv Materials Inc	$64.79	13.0	+144.2%	Buy	15	10.28B
41	MRX	Marex Group Plc	$40.48	6.5	+143.0%	Strong Buy	11	2.88B
42	PRDO	Perdoceo Education Corp	$31.71	13.1	+142.6%	Strong Buy	7	2.04B
43	CGAU	Centerra Gold Inc	$17.33	9.8	+142.6%	Buy	18	4.55B
44	TIGO	Millicom Intl Cellular S.A.	$66.95	10.2	+141.9%	Buy	18	11.18B
45	GNTX	Gentex Corp	$24.12	13.9	+140.1%	Buy	14	5.28B
46	EFXT	Enerflex Ltd	$17.83	15.1	+140.0%	Strong Buy	10	2.80B
47	CLSK	Cleanspark Inc	$10.08	7.1	+139.4%	Strong Buy	19	2.58B
48	MGA	Magna International Inc	$54.02	14.4	+139.1%	Buy	13	20.32B
49	RY	Royal Bank Of Canada	$170.40	15.9	+136.1%	Strong Buy	24	323.63B
50	CWAN	Clearwater Analytics Hds-A	$23.85	17.8	+133.3%	Strong Buy	16	6.99B
51	FNB	Fnb Corp	$18.90	12.0	+131.5%	Strong Buy	12	6.77B
52	TGLS	Tecnoglass Inc	$52.08	13.4	+131.1%	Strong Buy	10	2.43B
53	SFD	Smithfield Foods Inc	$24.47	11.2	+130.8%	Buy	6	9.62B
54	BKU	Bankunited Inc	$50.93	14.3	+130.7%	Hold	15	3.83B
55	SBH	Sally Beauty Holdings Inc	$16.16	8.1	+128.3%	Buy	9	1.59B
56	CVBF	Cvb Financial Corp	$21.43	14.2	+127.0%	Buy	12	2.90B
57	TFC	Truist Financial Corp	$55.81	13.5	+125.1%	Hold	24	71.39B
58	OBDC	Blue Owl Capital Corp	$11.46	8.8	+123.9%	Strong Buy	19	5.86B
59	XYZ	Block Inc	$55.97	11.3	+121.4%	Buy	21	35.32B
60	AMPH	Amphastar Pharmaceuticals In	$29.26	12.0	+121.2%	Buy	12	1.34B
61	CCEC	Capital Clean Energy Carrier	$20.46	5.1	+120.6%	Strong Buy	12	1.21B
62	NOV	Nov Inc	$18.91	18.0	+120.0%	Hold	25	6.90B
63	CXW	Corecivic Inc	$18.72	17.8	+119.7%	Strong Buy	8	1.95B
64	CFG	Citizens Financial Group	$68.12	16.0	+119.6%	Strong Buy	26	29.26B
65	RF	Regions Financial Corp	$30.93	12.6	+119.1%	Hold	32	27.12B
66	TGTX	Tg Therapeutics Inc	$28.86	10.2	+116.2%	Strong Buy	15	4.58B
67	BBWI	Bath & Body Works Inc	$23.05	6.8	+116.1%	Hold	20	4.72B
68	CNO	Cno Financial Group Inc	$44.64	14.4	+115.7%	Buy	9	4.26B
69	CM	Can Imperial Bk Of Commerce	$96.68	14.2	+115.6%	Buy	24	120.00B
70	CWT	California Water Service Grp	$44.47	19.5	+115.3%	Strong Buy	8	2.65B
71	DELL	Dell Technologies -C	$121.05	15.1	+114.7%	Buy	26	80.22B
72	VNT	Vontier Corp	$42.10	14.7	+114.6%	Buy	15	5.98B
73	ADMA	Adma Biologics Inc	$16.43	18.7	+114.4%	Strong Buy	9	3.91B
74	BAH	Booz Allen Hamilton Holdings	$89.01	12.8	+114.3%	Hold	24	10.73B
75	MAS	Masco Corp	$72.87	18.3	+113.8%	Hold	27	15.13B
76	LKQ	Lkq Corp	$34.58	12.7	+112.0%	Hold	10	8.85B
77	VITL	Vital Farms Inc	$26.85	19.8	+111.3%	Strong Buy	18	1.21B
78	AM	Antero Midstream Corp	$19.18	19.3	+110.8%	Hold	11	9.13B
79	VIRT	Virtu Financial Inc-Class A	$38.53	13.9	+110.7%	Buy	13	5.85B
80	FHN	First Horizon Corp	$26.23	13.0	+108.6%	Hold	24	12.72B
81	SON	Sonoco Products Co	$51.32	8.1	+108.2%	Hold	15	5.06B
82	CBC	Central Bancompany	$24.25	15.0	+106.9%	Strong Buy	8	5.85B
83	NTR	Nutrien Ltd	$68.61	18.2	+106.7%	Buy	20	45.02B
84	CPRX	Catalyst Pharmaceuticals Inc	$24.44	13.8	+105.1%	Strong Buy	14	3.00B
85	BK	Bank Of New York Mellon Corp	$124.32	9.9	+104.0%	Hold	30	85.56B
86	NWSA	News Corp - Class A	$22.50	11.2	+101.0%	Strong Buy	15	13.19B
87	EOG	Eog Resources Inc	$113.70	11.2	+98.8%	Hold	22	61.69B
88	IMO	Imperial Oil Ltd	$112.68	18.4	+98.0%	Hold	26	73.78B
89	ABM	Abm Industries Inc	$47.56	17.6	+97.5%	Hold	12	2.86B
90	PYPL	Paypal Holdings Inc	$40.42	7.1	+97.3%	Hold	50	37.21B
91	FLR	Fluor Corp	$46.92	2.2	+96.0%	Buy	13	7.56B
92	NEM	Newmont Corp	$115.32	17.5	+95.8%	Strong Buy	27	125.84B
93	RRC	Range Resources Corp	$36.57	15.1	+95.6%	Hold	30	8.66B
94	TRMD	Torm Plc-A	$24.90	8.9	+94.3%	Buy	10	15.54B
95	SKYT	Skywater Technology Inc	$30.35	11.7	+94.1%	Strong Buy	12	1.48B
96	SLF	Sun Life Financial Inc	$65.21	16.0	+93.4%	Hold	24	49.49B
97	HOMB	Home Bancshares Inc	$30.59	12.7	+91.3%	Buy	15	6.02B
98	INCY	Incyte Corp	$108.39	17.9	+90.8%	Buy	23	21.28B
99	TRMK	Trustmark Corp	$44.69	12.0	+88.3%	Buy	12	2.68B
100	CBSH	Commerce Bancshares Inc	$55.17	14.6	+85.9%	Hold	15	8.22B
101	SWKS	Skyworks Solutions Inc	$62.10	19.5	+83.9%	Buy	15	9.31B
102	IGIC	International General Insura	$25.60	9.0	+83.3%	Strong Buy	8	1.13B
103	EBAY	Ebay Inc	$86.55	17.9	+82.0%	Hold	40	39.12B
104	BY	Byline Bancorp Inc	$33.51	11.8	+81.7%	Buy	14	1.54B
105	VAL	Valaris Ltd	$62.41	10.9	+80.4%	Hold	16	4.34B
106	FULT	Fulton Financial Corp	$22.75	10.5	+80.0%	Buy	11	4.09B
107	DUK	Duke Energy Corp	$121.86	19.0	+79.8%	Hold	36	94.77B
108	INVA	Innoviva Inc	$21.80	12.8	+79.6%	Strong Buy	10	1.63B
109	GSL	Global Ship Lease Inc-Cl A	$36.66	3.3	+79.3%	Buy	7	1.31B
110	TTE	Totalenergies Se	$73.83	11.1	+79.0%	Buy	28	133.63B
111	BNS	Bank Of Nova Scotia	$76.34	16.4	+78.9%	Hold	19	127.59B
112	STNG	Scorpio Tankers Inc	$68.43	12.4	+78.8%	Strong Buy	16	3.54B
113	MAIN	Main Street Capital Corp	$60.31	10.1	+75.1%	Hold	14	5.40B
114	BNT	Brookfield Wealth Solutions	$45.14	10.4	+74.9%	Hold	18	18.83B
115	EFSC	Enterprise Financial Service	$59.89	11.0	+74.4%	Buy	11	2.22B
116	OMF	Onemain Holdings Inc	$61.64	10.3	+73.7%	Buy	19	7.26B
117	AA	Alcoa Corp	$59.16	13.1	+72.1%	Buy	22	15.32B
118	KMB	Kimberly-Clark Corp	$104.33	17.1	+71.5%	Hold	21	34.62B
119	FIBK	First Interstate Bancsys-A	$38.82	13.2	+70.2%	Buy	14	3.99B
120	NJR	New Jersey Resources Corp	$52.42	16.2	+70.2%	Strong Buy	11	5.29B
121	UPS	United Parcel Service-Cl B	$117.34	17.9	+68.3%	Hold	34	99.55B
122	CBZ	Cbiz Inc	$38.27	20.0	+66.2%	Strong Buy	7	2.08B
123	MTCH	Match Group Inc	$31.63	13.3	+65.7%	Hold	29	7.47B
124	TBBK	Bancorp Inc/The	$62.02	11.9	+64.0%	Strong Buy	9	2.72B
125	EZPW	Ezcorp Inc-Cl A	$25.63	14.4	+63.9%	Strong Buy	13	1.58B
126	SM	Sm Energy Co	$21.08	6.9	+63.6%	Buy	21	5.02B
127	OGE	Oge Energy Corp	$43.96	17.9	+63.4%	Buy	5	9.03B
128	CNXC	Concentrix Corp	$39.93	7.8	+62.7%	Buy	11	2.46B
129	KEN	Kenon Holdings Ltd	$73.26	8.0	+62.1%	Strong Buy	5	3.82B
130	TMUS	T-Mobile Us Inc	$197.39	18.6	+61.9%	Buy	37	220.78B
131	SLVM	Sylvamo Corp	$50.74	11.1	+61.8%	Strong Buy	9	2.00B
132	SYF	Synchrony Financial	$75.16	7.6	+61.6%	Hold	23	27.07B
133	JEF	Jefferies Financial Group In	$58.94	16.7	+60.6%	Hold	24	12.18B
134	LZB	La-Z-Boy Inc	$38.80	17.7	+60.4%	Buy	7	1.60B
135	OTEX	Open Text Corp	$25.07	13.2	+59.9%	Buy	10	7.87B
136	PEBO	Peoples Bancorp Inc	$34.18	11.4	+59.8%	Hold	13	1.22B
137	OMC	Omnicom Group	$69.87	16.5	+59.6%	Buy	13	21.98B
138	MO	Altria Group Inc	$65.40	15.8	+59.2%	Hold	24	109.79B
139	FMBH	First Mid Bancshares Inc	$44.59	11.7	+59.1%	Buy	13	1.07B
140	GCT	Gigacloud Technology Inc - A	$40.25	11.5	+58.4%	Strong Buy	8	1.49B
141	MTH	Meritage Homes Corp	$75.91	11.8	+58.0%	Hold	16	5.34B
142	BCE	Bce Inc	$25.08	5.2	+57.7%	Hold	22	32.67B
143	EWBC	East West Bancorp Inc	$122.50	12.7	+57.7%	Hold	14	16.85B
144	ACGL	Arch Capital Group Ltd	$100.95	8.9	+57.1%	Buy	27	36.61B
145	PNW	Pinnacle West Capital	$93.52	18.8	+56.8%	Hold	25	11.19B
146	ARDT	Ardent Health Inc	$8.94	6.2	+54.7%	Buy	19	1.28B
147	WTRG	Essential Utilities Inc	$37.42	16.6	+54.1%	Hold	23	11.08B
148	URBN	Urban Outfitters Inc	$72.47	13.3	+53.3%	Buy	20	6.50B
149	AIG	American International Group	$76.72	12.7	+53.0%	Hold	26	41.40B
150	TSLX	Sixth Street Specialty Lendi	$20.17	10.0	+52.5%	Strong Buy	17	1.91B
151	WLYB	Wiley (John) & Sons-Cl B	$29.79	15.3	+52.4%	Strong Buy	5	1.56B
152	NTB	Bank Of N.T. Butterfield&Son	$53.08	9.6	+52.1%	Buy	8	2.19B
153	WSC	Willscot Holdings Corp	$22.26	18.2	+50.6%	Buy	14	4.06B
154	KFY	Korn Ferry	$68.11	13.6	+49.7%	Strong Buy	9	3.55B
155	LEVI	Levi Strauss & Co- Class A	$20.55	13.9	+49.2%	Strong Buy	21	8.02B
156	DOX	Amdocs Ltd	$73.34	14.0	+48.4%	Strong Buy	12	7.92B
157	FTDR	Frontdoor Inc	$57.33	15.8	+47.4%	Buy	12	4.13B
158	EVTC	Evertec Inc	$27.02	11.8	+47.3%	Buy	12	1.73B
159	TMHC	Taylor Morrison Home Corp	$65.18	7.5	+46.8%	Strong Buy	16	6.37B
160	GPN	Global Payments Inc	$72.86	11.7	+45.5%	Hold	16	20.40B
161	TXT	Textron Inc	$95.44	18.3	+44.0%	Buy	16	16.82B
162	BLX	Banco Latinoamericano Come-E	$48.92	7.7	+43.6%	Strong Buy	8	1.72B
163	SFM	Sprouts Farmers Market Inc	$67.32	12.8	+43.4%	Buy	20	6.55B
164	PRSU	Pursuit Attractions And Hosp	$37.49	2.9	+42.4%	Strong Buy	10	1.06B
165	ALL	Allstate Corp	$207.55	6.5	+42.2%	Hold	22	54.31B
166	ZION	Zions Bancorp Na	$65.29	11.1	+42.2%	Strong Buy	9	9.44B
167	HIG	Hartford Insurance Group Inc	$142.56	10.4	+41.4%	Hold	28	39.72B
168	ASO	Academy Sports & Outdoors In	$59.13	10.5	+40.0%	Hold	24	3.94B
169	SLM	Slm Corp	$27.30	7.4	+39.9%	Buy	15	5.54B
170	UMBF	Umb Financial Corp	$134.32	14.5	+39.4%	Buy	17	10.20B
171	AEP	American Electric Power	$120.80	17.6	+39.1%	Buy	32	64.52B
172	EQT	Eqt Corp	$56.79	19.9	+38.9%	Strong Buy	32	35.44B
173	PARR	Par Pacific Holdings Inc	$43.30	9.2	+38.4%	Buy	14	2.18B
174	COP	Conocophillips	$107.62	15.0	+37.6%	Strong Buy	34	132.99B
175	L	Loews Corp	$111.27	15.8	+35.3%	Buy	24	23.00B
176	PGR	Progressive Corp	$202.29	10.5	+34.7%	Hold	29	118.62B
177	SWX	Southwest Gas Holdings Inc	$83.26	13.0	+34.2%	Strong Buy	12	6.01B
178	SOBO	South Bow Corp	$29.18	18.2	+34.1%	Hold	22	8.28B
179	CCS	Century Communities Inc	$69.79	13.7	+32.9%	Buy	8	2.03B
180	NFG	National Fuel Gas Co	$85.77	12.4	+32.0%	Buy	9	8.15B
181	CENT	Central Garden & Pet Co	$37.99	13.4	+31.7%	Strong Buy	12	2.18B
182	MGY	Magnolia Oil & Gas Corp - A	$26.99	15.7	+31.1%	Buy	24	5.09B
183	PB	Prosperity Bancshares Inc	$74.51	13.4	+30.7%	Buy	23	7.27B
184	MRK	Merck & Co. Inc.	$121.93	16.6	+30.6%	Buy	34	302.63B
185	LGIH	Lgi Homes Inc	$59.12	12.8	+30.2%	Buy	12	1.36B
186	ACN	Accenture Plc-Cl A	$240.62	19.5	+29.5%	Buy	32	148.06B
187	MD	Pediatrix Medical Group Inc	$20.89	11.1	+29.4%	Buy	15	1.79B
188	GIB	Cgi Inc	$82.73	14.6	+29.4%	Hold	13	24.22B
189	TILE	Interface Inc	$34.63	17.8	+29.3%	Strong Buy	8	2.02B
190	UGI	Ugi Corp	$37.09	11.8	+28.7%	Strong Buy	7	7.97B
191	FRME	First Merchants Corp	$42.34	11.8	+28.7%	Strong Buy	12	2.67B
192	AR	Antero Resources Corp	$34.37	19.4	+28.7%	Hold	11	10.60B
193	EHC	Encompass Health Corp	$105.39	19.6	+28.5%	Buy	20	10.60B
194	ICLR	Icon Plc	$150.59	19.2	+28.0%	Buy	15	11.50B
195	WD	Walker & Dunlop Inc	$63.23	19.2	+28.0%	Strong Buy	13	2.20B
196	POR	Portland General Electric Co	$50.65	18.8	+27.8%	Hold	18	5.70B
197	Q	Qnity Electronics Inc	$98.22	18.8	+27.3%	Hold	11	20.57B
198	CBT	Cabot Corp	$74.58	11.8	+27.1%	Buy	9	3.89B
199	TRIN	Trinity Capital Inc	$16.19	8.6	+26.9%	Strong Buy	15	1.23B
200	AGO	Assured Guaranty Ltd	$87.75	10.1	+25.2%	Buy	7	4.05B

Frequently Asked Questions

What are undervalued stocks?

Undervalued stocks trade at prices below their estimated intrinsic value. This means the market price does not fully reflect the company's assets, earnings power, or growth potential. Common indicators include a low P/E ratio relative to industry peers, price below book value, high free cash flow yield, and analyst price targets significantly above the current price. Identifying truly undervalued stocks requires thorough fundamental analysis.

How to find undervalued stocks?

Start by screening for stocks with low P/E ratios, high dividend yields, and prices below analyst consensus targets. Then dig deeper — examine the balance sheet for hidden assets or excessive pessimism, check if earnings are temporarily depressed, and evaluate the competitive position. Warren Buffett's approach focuses on companies with durable competitive advantages trading at reasonable prices, not just statistically cheap stocks.

What is value investing?

Value investing is a strategy of buying stocks for less than their intrinsic worth and holding them until the market recognizes their true value. Pioneered by Benjamin Graham and refined by Warren Buffett, it emphasizes a margin of safety — buying at enough of a discount that even if your analysis is partially wrong, you still avoid losing money. Value investors focus on fundamentals like earnings, assets, and cash flow rather than market trends or momentum.

What is the P/E ratio and why does it matter?

The price-to-earnings (P/E) ratio divides a stock's price by its earnings per share. A lower P/E suggests you're paying less for each dollar of earnings. The average S&P 500 P/E is historically around 15-20x. However, P/E alone can be misleading — a stock may have a low P/E because earnings are about to decline, or a high P/E because it's growing rapidly. Compare P/E to industry peers and the company's own history for context.

What is a value trap?

A value trap is a stock that appears cheap but continues declining because its fundamental problems are worse than they appear. Common value traps include companies in secular decline (like traditional retail facing e-commerce disruption), companies with excessive debt, and cyclical businesses at peak earnings. To avoid value traps, focus on companies with strong balance sheets, stable or growing free cash flow, and competitive positions that can withstand industry changes.

What is intrinsic value?

Intrinsic value is the estimated true worth of a company based on fundamental analysis, independent of its current market price. Methods for calculating it include discounted cash flow (DCF) analysis, sum-of-the-parts valuation, and asset-based approaches. Different analysts may arrive at different intrinsic value estimates using different assumptions. The concept is central to value investing — the gap between intrinsic value and market price represents the opportunity or risk.

Are undervalued stocks good for beginners?

Value investing requires patience and fundamental analysis skills, which can be challenging for beginners. However, the core principle of buying quality at a discount is sound for any investor. Beginners might start with value-oriented ETFs like the Vanguard Value ETF (VTV) or iShares Russell 1000 Value ETF (IWD) rather than picking individual undervalued stocks. As skills develop, individual stock selection can potentially add higher returns.

How long does it take for undervalued stocks to recover?

There is no guaranteed timeline for value realization. Some undervalued stocks recover in weeks after a catalyst like strong earnings, while others remain depressed for months or years. Academic research suggests value strategies typically outperform over 3-5 year periods, though they can underperform for extended stretches. Catalysts that unlock value include management changes, activist investors, earnings turnarounds, spin-offs, and industry tailwinds.