Stocks recently deemed undervalued include Cynergistek and Kewaunee Scientific, as they trade at a market price below their true valuations. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
Cynergistek, Inc. (AMEX:CTEK)
Cynergistek, Inc. provides outsourced document management services and IT security consulting services primarily to the healthcare industry in the United States. The company size now stands at 283 people and has a market cap of USD $38.39M, putting it in the small-cap group.
CTEK’s stock is now hovering at around -61% less than its actual level of $10.25, at the market price of $4.04, based on my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Also, CTEK’s PE ratio stands at around 7.3x against its its healthcare providers and services peer level of 22x, implying that relative to other stocks in the industry, we can purchase CTEK’s shares for cheaper. CTEK is also strong financially, with near-term assets able to cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 119% has been falling over the past couple of years indicating CTEK’s capacity to pay down its debt.
Kewaunee Scientific Corporation (NASDAQ:KEQU)
Kewaunee Scientific Corporation designs, manufactures, and installs laboratory, healthcare, and technical furniture products. Started in 1906, and currently headed by CEO David Rausch, the company size now stands at 745 people and with the market cap of USD $81.14M, it falls under the small-cap stocks category.
KEQU’s stock is now trading at -53% less than its true level of $62.98, at the market price of $29.9, according to my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. In terms of relative valuation, KEQU’s PE ratio is trading at around 18.6x relative to its healthcare equipment and supplies peer level of 41.8x, suggesting that relative to its peers, KEQU’s shares can be purchased for a lower price. KEQU also has a healthy balance sheet, with near-term assets able to cover upcoming and long-term liabilities. Finally, its debt relative to equity is 15%, which has been dropping over the past couple of years revealing KEQU’s capacity to reduce its debt obligations year on year.
AllianceBernstein Holding L.P. (NYSE:AB)
AllianceBernstein Holding L.P. is publicly owned investment manager. Founded in 1987, and currently lead by Seth Bernstein, the company employs 3,438 people and has a market cap of USD $2.38B, putting it in the mid-cap stocks category.
AB’s shares are currently trading at -84% less than its true value of $160.89, at the market price of $25.4, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. In addition to this, AB’s PE ratio stands at 12x relative to its capital markets peer level of 17.9x, suggesting that relative to its comparable company group, AB can be bought at a cheaper price right now. AB is also a financially robust company, with near-term assets able to cover upcoming and long-term liabilities. AB also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility.
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.