Undervalued companies, such as Alliance Holdings GP and Kohl’s, are those that trade at a price below their actual values. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
Alliance Holdings GP, L.P. (NASDAQ:AHGP)
Alliance Holdings GP, L.P., together with its subsidiaries, produces and markets coal primarily to utilities and industrial users in the United States. Started in 2005, and currently headed by CEO Joseph Craft, the company now has 3,321 employees and has a market cap of USD $1.52B, putting it in the small-cap stocks category.
AHGP’s shares are now hovering at around -52% lower than its actual worth of $52.69, at a price tag of US$25.35, according to my discounted cash flow model. This difference in price and value gives us a chance to buy low. Additionally, AHGP’s PE ratio is trading at around 8.16x while its Oil and Gas peer level trades at, 12.05x indicating that relative to other stocks in the industry, you can purchase AHGP’s stock for a lower price right now. AHGP is also in good financial health, as short-term assets amply cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 49.79% has been dropping over time, demonstrating its ability to pay down its debt. Dig deeper into Alliance Holdings GP here.
Kohl’s Corporation (NYSE:KSS)
Kohl’s Corporation operates as an omni-channel retailer in the United States. Established in 1962, and now led by CEO Kevin Mansell, the company provides employment to 85,000 people and has a market cap of USD $10.43B, putting it in the large-cap stocks category.
KSS’s shares are now hovering at around -39% under its true value of $101.79, at a price of US$61.98, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. Also, KSS’s PE ratio stands at around 12.05x relative to its Multiline Retail peer level of, 15.96x implying that relative to its comparable set of companies, you can buy KSS for a cheaper price. KSS is also a financially robust company, with short-term assets covering liabilities in the near future as well as in the long run. More on Kohl’s here.
FTI Consulting, Inc. (NYSE:FCN)
FTI Consulting, Inc. provides business advisory services to manage change, mitigate risk, and resolve disputes worldwide. Formed in 1982, and currently headed by CEO Steven Gunby, the company provides employment to 4,609 people and with the company’s market cap sitting at USD $1.71B, it falls under the small-cap group.
FCN’s shares are currently hovering at around -28% beneath its actual worth of $64.62, at a price tag of US$46.78, based on my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Furthermore, FCN’s PE ratio stands at around 16.77x while its Professional Services peer level trades at, 21.47x suggesting that relative to its peers, FCN’s shares can be purchased for a lower price. FCN is also strong financially, with current assets covering liabilities in the near term and over the long run. Finally, its debt relative to equity is 33.25%, which has been falling over the past couple of years signifying FCN’s capability to reduce its debt obligations year on year. More on FTI Consulting here.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.