There are many excellent companies on the market today. Using the ModernGraham valuation model, I selected over 900 companies reviewed by ModernGraham and selected five mid-range underestimates for value investors.
According to the Modern Graham method, each company has been identified as a suitable defensive or corporate investor. Defensive investors are defined as investors who are unable or unwilling to conduct substantial research on individual investments, so they only need to choose the company with the lowest risk. On the other hand, corporate investors can do a lot of research, and they can choose companies with moderate (though still low) risk.
Top 5 Undervalued Stocks For 2018:Signet Jewelers Ltd.(SIG)
Signet Jewellery Co., Ltd. is suitable for venture investors, but it is not suitable for more conservative defensive investors. Defensive investors are concerned about stable or insufficient earnings growth and poor dividend history over the past decade. Venture investors do not have initial concerns. Therefore, all corporate investors adopting the ModernGraham approach should be satisfied with the analysis process.
As for valuation, the company seems to be underestimated after increasing EPSmg (standardized earnings defined here) from 3.86 US dollars in 2014 to an estimated value of 6.07 dollars in 2018. This level of real gain growth exceeds the market's implicit estimated annual return loss of 0.22% over the next 7-10 years. Therefore, the Modern Graham valuation model based on the Benjamin Graham's value investment formula returns an intrinsic value estimate that is higher than the price.
In conducting the valuation, a further study of Signet Jewelers Ltd. revealed that the company’s trading price was lower than its Graham number of US$61.99. The company paid dividends of $1.04 per share, yielding a 2.1% yield, making it the best dividend payout today. Its PEmg (price higher than earnings per share - ModernGraham) is 8.06, which is lower than the industry average of 30.22, making it one of the lowest-valued stocks in the industry by some valuation methods. Finally, the company's net current assets (NCAV) is higher than -3.32 USD.
Top 5 Undervalued Stocks For 2018:Simmons First National Corporation (SFNC)
Simmons First Nations is eligible to act as a defensive investor and a corporate investor. In fact, the company met all the requirements of both types of investors. This is a rare achievement and shows that the company's financial position is good. Venture investors do not have initial concerns. Therefore, all value investors who follow the ModernGraham approach should feel at ease in their analysis.
As for valuation, the company appears to have been underestimated after increasing EPSmg (standardized income) from $0.87 in 2014 to an estimate of $1.67 in 2018. This level of real income growth exceeds the market's implied growth rate of 4.86% for the next year 7-10 years. Therefore, the ModernGraham valuation model based on the Benjamin Graham formula returns an intrinsic value estimate that is higher than the price.
In conducting the valuation, further research on Simmons First National Corporation showed that the company's trading price was lower than its Graham Number of US$34.09. The company pays a dividend of $0.50 per share and the yield is 1.6%. Its PEmg (price higher than earnings per share - ModernGraham) was 18.22, below the industry average of 24.17, making it the most undervalued stock in its industry through certain valuation methods.
Top 5 Undervalued Stocks For 2018:Bed Bath&Beyond Inc.(BBBY)
Bed Bath & Beyond Inc. is suitable for aggressive investors but not for more conservative defensive investors. Defensive investors are concerned about low current ratios and have poor dividend history. Venture investors do not have initial concerns. Therefore, all corporate investors adopting the ModernGraham approach should be satisfied with the analysis process.
As for valuation, the company seems to have been underestimated after increasing EPSmg (standardized income) from 4.19 US dollars in 2014 to an estimated 4.19 US dollars in 2018. This level shows that the revenue growth exceeds the market's implied estimate, with a loss of 1.57% in the next 7-10 years. Therefore, the Modern Graham valuation model based on the Benjamin Graham's value investment formula returns an intrinsic value estimate that is higher than the price.
In conducting the valuation, further research on Bed Bath & Beyond Inc. revealed that the company's trading price was lower than Graham Number 34.59. The company pays a dividend of $0.38 per share, and the yield is 1.7%. Its PEmg (price higher than earnings per share - ModernGraham) is 5.36, which is lower than the industry average of 35.42, making it the most in its industry through certain valuation methods. Undervalued stocks. Finally, the company's trading price is higher than its -3.6 US dollar net current asset value.
Top 5 Undervalued Stocks For 2018:Foot Locker, Inc.(FL)
Foot Locker, Inc. is both a defensive investor and a corporate investor. In fact, the company met all the requirements of both types of investors. This is a rare achievement and shows that the company's financial position is good. Venture investors do not have initial concerns. Therefore, all value investors who follow the ModernGraham approach should feel at ease in their analysis.
As for valuation, the company seems to be underestimated after increasing EPSmg (standardized income) from 2.77 USD in 2015 to a value of 3.66 USD in 2019. This level of earnings growth exceeds the market's implied earnings growth rate of 1.67% for the next year 7-10 years. Therefore, the Modern Graham valuation model based on the Benjamin Graham's value investment formula returns an intrinsic value estimate that is higher than the price.
In conducting the valuation, further research on Foot Locker, Inc. revealed that the company's trading price is higher than Graham's $42.1. The company paid a dividend of $1.24 per share, yielding a yield of 2.9%, making it the best dividend payout today. Its PEmg (price higher than earnings per share - ModernGraham) is 11.85, which is below the industry average of 40.48, and has made it one of the lowest-valued stocks in the industry by some valuation methods. Finally, the company's net current assets are worth more than $9.15.
Top 5 Undervalued Stocks For 2018:Hanesbrands Inc. (HBI)
Hanesbrands Inc. is suitable for venture capitalists, but it does not apply to more conservative defensive investors. Defensive investors are concerned about low liquidity ratios, poor dividend history, and high PB ratios. Enterprise investors only care about the level of debt relative to the net value of current assets. Therefore, all corporate investors adopting the ModernGraham approach should be satisfied with the analysis process.
As for valuation, the company appears to be at fair value after increasing EPSmg (standardized income) from $0.75 in 2014 to a value of $1.11 in 2018. This level of revenue growth supports the market's implied annual revenue growth rate of 4.92% for the next 7-10 years. Therefore, the Modern Graham valuation model based on Benjamin Graham's value investment formula will return an intrinsic value estimate within the margin of safety relative to price.
At the time of the valuation, further research on Hanesbrands Inc. revealed that the company's trading price was higher than Graham Number 8.59 US dollars. The company pays a dividend of $0.6 per share, and the yield is 3%, making it the most dividend-paying stock today. Its PEmg (Price higher than earnings per share - ModernGraham) is 18.35, which is below the industry average of 40.48, and has made it one of the lowest-valued stocks in the industry by some valuation methods. Finally, the company's trading price is higher than its -7.73 USD net liquid assets value.
According to the Modern Graham method, each company has been identified as a suitable defensive or corporate investor. Defensive investors are defined as investors who are unable or unwilling to conduct substantial research on individual investments, so they only need to choose the company with the lowest risk. On the other hand, corporate investors can do a lot of research, and they can choose companies with moderate (though still low) risk.
Top 5 Undervalued Stocks For 2018:Signet Jewelers Ltd.(SIG)
Signet Jewellery Co., Ltd. is suitable for venture investors, but it is not suitable for more conservative defensive investors. Defensive investors are concerned about stable or insufficient earnings growth and poor dividend history over the past decade. Venture investors do not have initial concerns. Therefore, all corporate investors adopting the ModernGraham approach should be satisfied with the analysis process.
As for valuation, the company seems to be underestimated after increasing EPSmg (standardized earnings defined here) from 3.86 US dollars in 2014 to an estimated value of 6.07 dollars in 2018. This level of real gain growth exceeds the market's implicit estimated annual return loss of 0.22% over the next 7-10 years. Therefore, the Modern Graham valuation model based on the Benjamin Graham's value investment formula returns an intrinsic value estimate that is higher than the price.
In conducting the valuation, a further study of Signet Jewelers Ltd. revealed that the company’s trading price was lower than its Graham number of US$61.99. The company paid dividends of $1.04 per share, yielding a 2.1% yield, making it the best dividend payout today. Its PEmg (price higher than earnings per share - ModernGraham) is 8.06, which is lower than the industry average of 30.22, making it one of the lowest-valued stocks in the industry by some valuation methods. Finally, the company's net current assets (NCAV) is higher than -3.32 USD.
Top 5 Undervalued Stocks For 2018:Simmons First National Corporation (SFNC)
Simmons First Nations is eligible to act as a defensive investor and a corporate investor. In fact, the company met all the requirements of both types of investors. This is a rare achievement and shows that the company's financial position is good. Venture investors do not have initial concerns. Therefore, all value investors who follow the ModernGraham approach should feel at ease in their analysis.
As for valuation, the company appears to have been underestimated after increasing EPSmg (standardized income) from $0.87 in 2014 to an estimate of $1.67 in 2018. This level of real income growth exceeds the market's implied growth rate of 4.86% for the next year 7-10 years. Therefore, the ModernGraham valuation model based on the Benjamin Graham formula returns an intrinsic value estimate that is higher than the price.
In conducting the valuation, further research on Simmons First National Corporation showed that the company's trading price was lower than its Graham Number of US$34.09. The company pays a dividend of $0.50 per share and the yield is 1.6%. Its PEmg (price higher than earnings per share - ModernGraham) was 18.22, below the industry average of 24.17, making it the most undervalued stock in its industry through certain valuation methods.
Top 5 Undervalued Stocks For 2018:Bed Bath&Beyond Inc.(BBBY)
Bed Bath & Beyond Inc. is suitable for aggressive investors but not for more conservative defensive investors. Defensive investors are concerned about low current ratios and have poor dividend history. Venture investors do not have initial concerns. Therefore, all corporate investors adopting the ModernGraham approach should be satisfied with the analysis process.
As for valuation, the company seems to have been underestimated after increasing EPSmg (standardized income) from 4.19 US dollars in 2014 to an estimated 4.19 US dollars in 2018. This level shows that the revenue growth exceeds the market's implied estimate, with a loss of 1.57% in the next 7-10 years. Therefore, the Modern Graham valuation model based on the Benjamin Graham's value investment formula returns an intrinsic value estimate that is higher than the price.
In conducting the valuation, further research on Bed Bath & Beyond Inc. revealed that the company's trading price was lower than Graham Number 34.59. The company pays a dividend of $0.38 per share, and the yield is 1.7%. Its PEmg (price higher than earnings per share - ModernGraham) is 5.36, which is lower than the industry average of 35.42, making it the most in its industry through certain valuation methods. Undervalued stocks. Finally, the company's trading price is higher than its -3.6 US dollar net current asset value.
Top 5 Undervalued Stocks For 2018:Foot Locker, Inc.(FL)
Foot Locker, Inc. is both a defensive investor and a corporate investor. In fact, the company met all the requirements of both types of investors. This is a rare achievement and shows that the company's financial position is good. Venture investors do not have initial concerns. Therefore, all value investors who follow the ModernGraham approach should feel at ease in their analysis.
As for valuation, the company seems to be underestimated after increasing EPSmg (standardized income) from 2.77 USD in 2015 to a value of 3.66 USD in 2019. This level of earnings growth exceeds the market's implied earnings growth rate of 1.67% for the next year 7-10 years. Therefore, the Modern Graham valuation model based on the Benjamin Graham's value investment formula returns an intrinsic value estimate that is higher than the price.
In conducting the valuation, further research on Foot Locker, Inc. revealed that the company's trading price is higher than Graham's $42.1. The company paid a dividend of $1.24 per share, yielding a yield of 2.9%, making it the best dividend payout today. Its PEmg (price higher than earnings per share - ModernGraham) is 11.85, which is below the industry average of 40.48, and has made it one of the lowest-valued stocks in the industry by some valuation methods. Finally, the company's net current assets are worth more than $9.15.
Top 5 Undervalued Stocks For 2018:Hanesbrands Inc. (HBI)
Hanesbrands Inc. is suitable for venture capitalists, but it does not apply to more conservative defensive investors. Defensive investors are concerned about low liquidity ratios, poor dividend history, and high PB ratios. Enterprise investors only care about the level of debt relative to the net value of current assets. Therefore, all corporate investors adopting the ModernGraham approach should be satisfied with the analysis process.
As for valuation, the company appears to be at fair value after increasing EPSmg (standardized income) from $0.75 in 2014 to a value of $1.11 in 2018. This level of revenue growth supports the market's implied annual revenue growth rate of 4.92% for the next 7-10 years. Therefore, the Modern Graham valuation model based on Benjamin Graham's value investment formula will return an intrinsic value estimate within the margin of safety relative to price.
At the time of the valuation, further research on Hanesbrands Inc. revealed that the company's trading price was higher than Graham Number 8.59 US dollars. The company pays a dividend of $0.6 per share, and the yield is 3%, making it the most dividend-paying stock today. Its PEmg (Price higher than earnings per share - ModernGraham) is 18.35, which is below the industry average of 40.48, and has made it one of the lowest-valued stocks in the industry by some valuation methods. Finally, the company's trading price is higher than its -7.73 USD net liquid assets value.
