Stocks recently deemed undervalued include Hexindai and Escalade, as they trade at a market price below their true valuations. Smart investors can make money from this discrepancy by buying these shares, because they believe the current market prices will eventually move towards their true value. If you’re looking for capital gains in your next investment, I suggest you take a look at my list of potentially undervalued stocks.
Hexindai Inc. (NASDAQ:HX)
Hexindai Inc., through its subsidiaries, operates an online consumer lending marketplace connecting borrowers and investors in the People’s Republic of China. Formed in 2013, and now led by CEO Xinming Zhou, the company now has 315 employees and has a market cap of USD $593.73M, putting it in the small-cap category.
HX’s stock is currently floating at around -62% beneath its real value of $32.67, at the market price of US$12.38, based on its expected future cash flows. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Moreover, HX’s PE ratio is currently around 10.29x while its Consumer Finance peer level trades at, 15.1x implying that relative to its comparable company group, we can purchase HX’s shares for cheaper. HX also has a healthy balance sheet, with near-term assets able to cover upcoming and long-term liabilities. HX also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. More detail on Hexindai here.
Escalade, Incorporated (NASDAQ:ESCA)
Escalade, Incorporated, together with its subsidiaries, manufactures and sells sporting goods in North America, Europe, and internationally. Established in 1922, and currently run by David Fetherman, the company currently employs 501 people and with the company’s market capitalisation at USD $202.54M, we can put it in the small-cap stocks category.
ESCA’s stock is now hovering at around -58% under its actual value of $33.87, at a price of US$14.20, based on my discounted cash flow model. The mismatch signals a potential chance to invest in ESCA at a discounted price. In addition to this, ESCA’s PE ratio stands at 14.69x while its Leisure peer level trades at, 26.3x indicating that relative to its competitors, you can buy ESCA for a cheaper price. ESCA is also in good financial health, as short-term assets amply cover upcoming and long-term liabilities. The stock’s debt-to-equity ratio of 20.40% has been falling over time, showing its capacity to pay down its debt. Interested in Escalade? Find out more here.
Bank of the Ozarks (NASDAQ:OZRK)
Bank of the Ozarks provides a range of retail and commercial banking services to businesses, individuals, and non-profit and governmental entities. Formed in 1981, and run by CEO George Gleason, the company size now stands at 2,400 people and with the company’s market capitalisation at USD $6.32B, we can put it in the mid-cap category.
OZRK’s stock is now hovering at around -71% less than its actual worth of $164.31, at a price of US$48.45, based on my discounted cash flow model. The divergence signals an opportunity to buy OZRK shares at a low price. Moreover, OZRK’s PE ratio stands at 13.83x relative to its Banks peer level of, 17.01x meaning that relative to its peers, you can purchase OZRK’s stock for a lower price right now. OZRK is also strong in terms of its financial health, as short-term assets amply cover upcoming and long-term liabilities. More detail on Bank of the Ozarks here.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.