May Undervalued Stock Opportunities
CBIZ and Corcept Therapeutics are two of the stocks I have identified as undervalued. This means their current share prices are trading at levels less than what the companies are actually worth. Smart investors can make money from this discrepancy by buying these shares, because they believe the current market prices will eventually move towards their true value. If you’re looking for capital gains in your next investment, I suggest you take a look at my list of potentially undervalued stocks.
CBIZ, Inc. (NYSE:CBZ)
CBIZ, Inc., through its subsidiaries, provides professional business services, products, and solutions in the United States and Canada. Founded in 1987, and headed by CEO Jerome Grisko, the company currently employs 4,600 people and has a market cap of USD $1.06B, putting it in the small-cap stocks category.
CBZ’s stock is currently floating at around -26% lower than its actual worth of $26.55, at the market price of US$19.55, based on my discounted cash flow model. This discrepancy signals a potential opportunity to buy CBZ shares at a low price. Also, CBZ’s PE ratio is trading at around 17.1x against its its Professional Services peer level of, 22.89x indicating that relative to other stocks in the industry, CBZ’s stock can be bought at a cheaper price. CBZ also has a healthy balance sheet, as current assets can cover liabilities in the near term and over the long run. Finally, its debt relative to equity is 38.06%, which has been declining over time, indicating its capability to pay down its debt. More on CBIZ here.
Corcept Therapeutics Incorporated (NASDAQ:CORT)
Corcept Therapeutics Incorporated, a pharmaceutical company, discovers, develops, and commercializes drugs for the treatment of severe metabolic, oncologic, and psychiatric disorders in the United States. Formed in 1998, and currently run by Joseph Belanoff, the company currently employs 136 people and with the stock’s market cap sitting at USD $1.82B, it comes under the small-cap stocks category.
CORT’s stock is currently floating at around -66% less than its true value of $47.4, at a price tag of US$16.20, based on my discounted cash flow model. The discrepancy signals an opportunity to buy low. In terms of relative valuation, CORT’s PE ratio is trading at 12.99x against its its Pharmaceuticals peer level of, 22.51x implying that relative to its comparable set of companies, we can buy CORT’s stock at a cheaper price today. CORT 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. CORT has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Continue research on Corcept Therapeutics here.
MasTec, Inc. (NYSE:MTZ)
MasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, and utility infrastructure primarily in the United States and Canada. Founded in 1929, and currently headed by CEO Jose Mas, the company size now stands at 17,200 people and with the company’s market capitalisation at USD $3.83B, we can put it in the mid-cap stocks category.
MTZ’s stock is currently hovering at around -45% lower than its intrinsic value of $87.36, at a price of US$48.45, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. Additionally, MTZ’s PE ratio is trading at 11.79x relative to its Construction peer level of, 18.13x meaning that relative to other stocks in the industry, we can invest in MTZ at a lower price. MTZ is also strong financially, with short-term assets covering liabilities in the near future as well as in the long run.
Continue research on MasTec here.
For more financially sound, undervalued companies to add to your portfolio, explore this 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.
