Top Cheap Stocks This Week
Companies that trade at market prices below their actual values, such as Deer Valley and China Growth Development, are perceived to be undervalued. Investors can determine how much a company is worth based on how much money they are expected to make in the future, or compared to the value of their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them good investments if you believe the price should eventually reflect the stock’s actual value.
Deer Valley Corporation (OTCPK:DVLY)
Deer Valley Corporation, through its subsidiaries, designs, manufactures, and sells factory built homes primarily in the southeastern and south central regions of the United States. The company now has 200 employees and with the market cap of USD $10.23M, it falls under the small-cap category.
DVLY’s shares are currently hovering at around -66% beneath its value of $1.96, at a price tag of $0.66, based on its expected future cash flows. The divergence signals an opportunity to buy DVLY shares at a low price. Moreover, DVLY’s PE ratio is trading at 5.2x while its consumer durables peer level trades at 17.6x, indicating that relative to its comparable set of companies, DVLY can be bought at a cheaper price right now. DVLY is also strong in terms of its financial health, with near-term assets able to cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 3% has been falling for the last couple of years signifying its capability to pay down its debt.
China Growth Development, Inc. (OTCPK:CGDI)
China Growth Development, Inc. builds, owns, and operates commercial real estates. China Growth Development is headed by CEO Aizhong An. The company currently has a market cap of USD $193.86K, putting it in the small-cap stocks category
CGDI’s stock is currently trading at -99% lower than its value of $0.53, at a price tag of $0.01, based on my discounted cash flow model. The discrepancy signals an opportunity to buy low. Moreover, CGDI’s PE ratio stands at 0.1x against its its real estate peer level of 12.1x, implying that relative to its comparable set of companies, you can purchase CGDI’s stock for a lower price right now. CGDI is also a financially robust company, as short-term assets amply cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 12% has over time, signalling its capacity
Avadel Pharmaceuticals plc (NASDAQ:AVDL)
Avadel Pharmaceuticals PLC identifies, develops, and commercializes pharmaceutical products for primary care and sterile injectable markets in the United States, France, and Ireland. Founded in 1990, and headed by CEO Michael Anderson, the company size now stands at 179 people and with the company’s market capitalisation at USD $334.00M, we can put it in the small-cap stocks category.
AVDL’s stock is currently hovering at around -76% under its true value of $36.9, at a price of $8.68, based on its expected future cash flows. The difference between value and price signals a potential opportunity to buy AVDL shares at a discount. Moreover, AVDL’s PE ratio is currently around 4.4x relative to its pharmaceuticals peer level of 24.2x, implying that relative to its comparable company group, AVDL’s shares can be purchased for a lower price. AVDL is also in great financial shape, with near-term assets able to cover upcoming and long-term liabilities. AVDL also has a miniscule amount of 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.
