This week we use a new function within our SimpleVisor stock screener to find significantly undervalued value stocks. Recently, we added the ability to screen based on where a stock price compares to its fair value. SimpleVisor’s fair value calculation is based on the average of the following three models: Benjamin Dodd, Peter Lynch, and our SV proprietary Discounted Cash Flow model.
The stocks in this screen offer cheap valuations and discounts to their respective fair value, which provide the potential for significant upside if the stock price gravitates toward fair value.
Screening Criteria
We considered the following factors when screening:
- P/E <10
- Forward P/E <15
- P/S <1.5
Company Summaries
Alcoa Corporation (AA)
Avnet, Inc. (AVT)
Pilgrim’s Pride Corporation (PPC)
Teck Resources Limited (TECK)
Warner Bros. Discovery, Inc. (WBD)
Five for Friday
Five for Friday uses stock screens to produce five stocks that we expect will outperform if a particular investment theme plays out in the future. Investment themes may be relevant to the current or expected market, industry and/or economic trends. Investment themes may not always represent our current forecast.
Disclosure
This report is not a recommendation to buy or sell the named securities. We intend to elicit ideas about stocks meeting specific criteria and investment themes. Please read our disclosures carefully and do your own research before investing.
Michael Lebowitz, CFA is an Investment Analyst and Portfolio Manager for RIA Advisors. specializing in macroeconomic research, valuations, asset allocation, and risk management. RIA Contributing Editor and Research Director. CFA is an Investment Analyst and Portfolio Manager; Co-founder of 720 Global Research.
Follow Michael on Twitter or go to 720global.com for more research and analysis.
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