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In recent weeks, global markets have experienced fluctuations driven by uncertainties surrounding the incoming Trump administration's policies and their potential impacts on various sectors. As investors navigate these turbulent waters, some stocks may present opportunities for those looking to capitalize on perceived undervaluations. Identifying such stocks involves assessing factors like strong fundamentals and resilience in challenging economic conditions, which can offer potential value amidst broader market volatility.
Top 10 Undervalued Stocks Based On Cash Flows
Name | Current Price | Fair Value (Est) | Discount (Est) |
Giant Biogene Holding (SEHK:2367) | HK$49.10 | HK$97.68 | 49.7% |
Oddity Tech (NasdaqGM:ODD) | US$43.12 | US$85.73 | 49.7% |
Wistron (TWSE:3231) | NT$114.00 | NT$227.48 | 49.9% |
SeSa (BIT:SES) | €75.75 | €150.40 | 49.6% |
Jetpak Top Holding (OM:JETPAK) | SEK106.00 | SEK211.87 | 50% |
Loihde Oyj (HLSE:LOIHDE) | €10.80 | €21.48 | 49.7% |
Telix Pharmaceuticals (ASX:TLX) | A$22.20 | A$44.22 | 49.8% |
EnomotoLtd (TSE:6928) | ¥1477.00 | ¥2942.16 | 49.8% |
Intermedical Care and Lab Hospital (SET:IMH) | THB4.96 | THB9.88 | 49.8% |
Nokian Renkaat Oyj (HLSE:TYRES) | €7.388 | €14.69 | 49.7% |
Here's a peek at a few of the choices from the screener.
Safran
Overview: Safran SA, along with its subsidiaries, operates in the aerospace and defense sectors globally and has a market cap of €92.23 billion.
Operations: Safran's revenue is primarily derived from Aerospace Propulsion (€12.66 billion), Aeronautical Equipment, Defense and Aerosystems (€9.91 billion), and Aircraft Interiors (€2.73 billion).
Estimated Discount To Fair Value: 32.3%
Safran is trading at €219.4, significantly below its estimated fair value of €324.23, suggesting it may be undervalued based on cash flows. Despite recent revenue guidance being lowered to €27.1 billion for 2024, its earnings are projected to grow at 20% annually, outpacing the French market's 12.5%. However, profit margins have decreased from last year’s 14.4% to 6.4%, which could affect overall valuation perceptions.
Vedanta
Overview: Vedanta Limited is a diversified natural resources company involved in exploring, extracting, and processing minerals as well as oil and gas across India and internationally, with a market cap of ₹1.73 trillion.
Operations: The company's revenue is primarily derived from its Aluminium segment at ₹517.63 billion, followed by Copper at ₹215.01 billion, Oil and Gas at ₹125.01 billion, Iron Ore at ₹76.42 billion, Power at ₹64.12 billion, and Zinc - International contributing ₹31.37 billion.