Three Stocks Trading At A Massive Discount
Stocks, such as Oshkosh, trading at a market price below their true values are considered to be undervalued. 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.
Oshkosh Corporation (NYSE:OSK)
Oshkosh Corporation designs, manufactures, and markets specialty vehicles and vehicle bodies worldwide. Founded in 1917, and headed by CEO Wilson Jones, the company size now stands at 14,000 people and with the company’s market cap sitting at USD $6.06B, it falls under the mid-cap category.
OSK’s stock is currently trading at -23% less than its value of $103.81, at the market price of US$79.83, based on its expected future cash flows. This mismatch indicates a chance to invest in OSK at a discounted price. In terms of relative valuation, OSK’s PE ratio is trading at 18.5x relative to its Machinery peer level of, 25.02x implying that relative to its peers, we can purchase OSK’s shares for cheaper. OSK is also in good financial health, with current assets covering liabilities in the near term and over the long run. Finally, its debt relative to equity is 36.33%, which has been dropping for the last couple of years revealing OSK’s capability to pay down its debt. Interested in Oshkosh? Find out more here.
Tech Data Corporation (NASDAQ:TECD)
Tech Data Corporation engages in the wholesale distribution of technology products. Started in 1974, and currently headed by CEO Robert Dutkowsky, the company employs 14,000 people and with the company’s market cap sitting at USD $3.43B, it falls under the mid-cap group.
TECD’s shares are currently floating at around -43% lower than its intrinsic value of $156.74, at the market price of US$88.70, according to my discounted cash flow model. This discrepancy signals a potential opportunity to buy TECD shares at a low price.
TECD is also in good financial health, as short-term assets amply cover upcoming and long-term liabilities.
Continue research on Tech Data here.
Jumei International Holding Limited (NYSE:JMEI)
Jumei International Holding Limited operates as an online retailer of beauty products in the People’s Republic of China. Formed in 2009, and now run by Leo Ou Chen, the company currently employs 2,913 people and has a market cap of USD $483.68M, putting it in the small-cap stocks category.
JMEI’s stock is currently trading at -64% under its value of ¥9.06, at the market price of US$3.28, based on my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. In terms of relative valuation, JMEI’s PE ratio stands at around 30.2x relative to its Online Retail peer level of, 44.89x suggesting that relative to its comparable set of companies, we can invest in JMEI at a lower price. JMEI is also robust in terms of financial health, with near-term assets able to cover upcoming and long-term liabilities. JMEI has zero debt on its books as well, meaning it has no long term debt obligations to worry about. More detail on Jumei International Holding here.
Or create your own list by filtering companies based on fundamentals such as intrinsic discount, health score and future outlook using this free stock screener.
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.
