Top NYSE Companies To Buy For Cheap
Meritor and Data I/O 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. There’s a few ways you can measure the value of a company – you can forecast how much money it will make in the future and base your valuation off of this, or you can look around at its peers of similar size and industry to roughly estimate what it should be worth. Below, I’ve created a list of companies that compare favourably in all criteria based on their most recent financial data, making them potentially good investments.
Meritor, Inc. (NYSE:MTOR)
Meritor, Inc. designs, develops, manufactures, markets, distributes, sells, services, and supports integrated systems, modules, and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation, and industrial sectors. Started in 1921, and currently run by Jeffrey Craig, the company provides employment to 8,200 people and with the company’s market capitalisation at USD $1.93B, we can put it in the small-cap group.
MTOR’s shares are now hovering at around -25% lower than its intrinsic level of $28.54, at a price of US$21.38, based on its expected future cash flows. This discrepancy gives us a chance to invest in MTOR at a discount. What’s even more appeal is that MTOR’s PE ratio is around 6.87x while its Machinery peer level trades at, 24.09x indicating that relative to its comparable company group, MTOR’s stock can be bought at a cheaper price. MTOR is also strong in terms of its financial health, as short-term assets amply cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 310.27% has been reducing for the past few years indicating MTOR’s ability to pay down its debt. Continue research on Meritor here.
Data I/O Corporation (NASDAQ:DAIO)
Data I/O Corporation designs, manufactures, and sells programming systems and services for electronic device manufacturers in the United States, Europe, and internationally. Started in 1969, and now run by Anthony Ambrose, the company currently employs 97 people and with the market cap of USD $60.96M, it falls under the small-cap group.
DAIO’s stock is currently hovering at around -43% under its actual worth of $12.52, at the market price of US$7.18, based on my discounted cash flow model. This mismatch indicates a chance to invest in DAIO at a discounted price. In addition to this, DAIO’s PE ratio is around 10.74x relative to its Electronic peer level of, 22.38x meaning that relative to its peers, DAIO can be bought at a cheaper price right now. DAIO is also in great financial shape, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. DAIO also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. More on Data I/O here.
Nautilus, Inc. (NYSE:NLS)
Nautilus, Inc., a consumer fitness products company, designs, develops, sources, and markets cardio and strength fitness products, and related accessories for consumer use in the United States, Canada, and internationally. Established in 1986, and now led by CEO Bruce Cazenave, the company currently employs 491 people and with the stock’s market cap sitting at USD $408.37M, it comes under the small-cap stocks category.
NLS’s stock is now floating at around -49% below its actual level of $29.39, at a price of US$15.00, based on its expected future cash flows. This discrepancy signals a potential opportunity to buy NLS shares at a low price. Additionally, NLS’s PE ratio stands at 16.65x compared to its Leisure peer level of, 22.9x implying that relative to its comparable company group, NLS’s shares can be purchased for a lower price. NLS is also in great financial shape, as short-term assets amply cover upcoming and long-term liabilities.
More detail on Nautilus 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.
