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Cheap Stocks To Invest In

Companies that trade at market prices below their actual values, such as Leon’s Furniture and Minco Gold, are perceived to be undervalued. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.

Leon’s Furniture Limited (TSX:LNF)

Leon’s Furniture Limited, together with its subsidiaries, operates as a retailer of furniture, appliances, and home electronics in Canada. Started in 1909, and headed by CEO Terrence Leon, the company currently employs 8,363 people and with the company’s market cap sitting at CAD CA$1.41B, it falls under the small-cap stocks category.

LNF’s stock is currently floating at around -32% less than its actual level of $27.46, at a price of $18.54, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Furthermore, LNF’s PE ratio stands at 13.5x compared to its specialty retail peer level of 13.5x, suggesting that relative to its comparable company group, we can purchase LNF’s shares for cheaper. LNF is also strong in terms of its financial health, with short-term assets covering liabilities in the near future as well as in the long run.

TSX:LNF PE PEG Gauge Dec 27th 17
TSX:LNF PE PEG Gauge Dec 27th 17

Minco Gold Corporation (TSXV:MMM)

Minco Gold Corporation operates as an investment issuer. Minco Gold was founded in 1982 and with the market cap of CAD CA$9.14M, it falls under the small-cap stocks category.

MMM’s shares are now floating at around -89% lower than its value of $1.64, at a price tag of $0.18, based on my discounted cash flow model. The mismatch signals a potential chance to invest in MMM at a discounted price. Moreover, MMM’s PE ratio stands at 1.8x compared to its capital markets peer level of 12.7x, meaning that relative to its comparable set of companies, you can buy MMM for a cheaper price. MMM is also robust in terms of financial health, with short-term assets covering liabilities in the near future as well as in the long run. MMM has zero debt on its books as well, meaning it has no long term debt obligations to worry about.

TSXV:MMM PE PEG Gauge Dec 27th 17
TSXV:MMM PE PEG Gauge Dec 27th 17

Celestica Inc. (TSX:CLS)

Celestica Inc. provides supply chain solutions in Canada and internationally. Started in 1996, and now led by CEO Robert Mionis, the company provides employment to 23,000 people and with the market cap of CAD CA$1.91B, it falls under the small-cap category.

CLS’s stock is now hovering at around -28% under its intrinsic value of $18.66, at the market price of $13.41, according to my discounted cash flow model. signalling an opportunity to buy the stock at a low price. What’s even more appeal is that CLS’s PE ratio is trading at 13.5x while its electronic peer level trades at 37.8x, meaning that relative to its comparable company group, we can purchase CLS’s shares for cheaper. CLS is also robust in terms of financial health, with near-term assets able to cover upcoming and long-term liabilities.

TSX:CLS PE PEG Gauge Dec 27th 17
TSX:CLS PE PEG Gauge Dec 27th 17

For more financially sound, undervalued companies to add to your portfolio, you can use our free platform to explore our interactive list of undervalued stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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