Top Cheap Stocks This Week
Undervalued companies, such as Fleetwood and New Hope, trade at a price less than their true values. 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.
Fleetwood Corporation Limited (ASX:FWD)
Fleetwood Corporation Limited provides accommodation solutions and recreational vehicles in Australia and New Zealand. Started in 1964, and run by CEO Bradley Denison, the company currently employs 617 people and with the stock’s market cap sitting at AUD A$143.89M, it comes under the small-cap stocks category.
FWD’s shares are now floating at around -43% beneath its actual worth of $4.23, at the market price of AU$2.41, according to my discounted cash flow model. This mismatch indicates a potential opportunity to buy low.
FWD is also strong in terms of its financial health, with near-term assets able to cover upcoming and long-term liabilities.
Dig deeper into Fleetwood here.
New Hope Corporation Limited (ASX:NHC)
New Hope Corporation Limited explores, develops, produces, and processes coal, and oil and gas in Japan, Taiwan, China, Chile, Korea, and Australia. Founded in 1952, and now run by Shane Stephan, the company currently employs 566 people and with the stock’s market cap sitting at AUD A$1.73B, it comes under the small-cap stocks category.
NHC’s stock is now trading at -57% beneath its intrinsic value of $4.78, at a price tag of AU$2.07, based on its expected future cash flows. This discrepancy gives us a chance to invest in NHC at a discount. Furthermore, NHC’s PE ratio is around 9.15x compared to its index peer level of, 16.97x meaning that relative to its competitors, you can buy NHC’s shares at a cheaper price. NHC is also a financially healthy company, with current assets covering liabilities in the near term and over the long run. NHC also has a miniscule amount of debt on its balance sheet, which gives it headroom to grow and financial flexibility. More detail on New Hope here.
Dicker Data Limited (ASX:DDR)
Dicker Data Limited engages in the wholesale distribution of computer hardware, software, and related products in Australia and New Zealand. Established in 1978, and currently lead by David Dicker, the company currently employs 410 people and has a market cap of AUD A$455.91M, putting it in the small-cap stocks category.
DDR’s shares are currently trading at -54% lower than its intrinsic value of $6.22, at a price of AU$2.85, according to my discounted cash flow model. This mismatch signals an opportunity to buy DDR shares at a discount. Additionally, DDR’s PE ratio is trading at around 16.94x while its index peer level trades at, 16.97x indicating that relative to its comparable set of companies, you can purchase DDR’s stock for a lower price right now. DDR is also a financially robust company, as current assets can cover liabilities in the near term and over the long run. The stock’s debt-to-equity ratio of 126.01% has been diminishing for the past few years revealing its capacity to reduce its debt obligations year on year. Dig deeper into Dicker Data 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.
