A stock that you can buy at a price below what it is worth is considered undervalued. This is the case for Green Plains Partners and Weis Markets. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.
Green Plains Partners LP (NASDAQ:GPP)
Green Plains Partners LP provides fuel storage and transportation services. The company was established in 2015 and has a market cap of USD $556.71M, putting it in the small-cap group.
GPP’s stock is currently floating at around -46% less than its actual level of $32.7, at the market price of US$17.50, according to my discounted cash flow model. This mismatch signals an opportunity to buy GPP shares at a discount. Moreover, GPP’s PE ratio is currently around 9.92x relative to its Oil and Gas peer level of, 13.87x meaning that relative to other stocks in the industry, we can purchase GPP’s shares for cheaper. GPP is also a financially robust company, with current assets covering liabilities in the near term and over the long run. More on Green Plains Partners here.
Weis Markets, Inc. (NYSE:WMK)
Weis Markets, Inc. engages in the retail sale of food in Pennsylvania and surrounding states. Started in 1912, and now run by Jonathan Weis, the company provides employment to 23,000 people and with the company’s market capitalisation at USD $1.47B, we can put it in the small-cap category.
WMK’s stock is currently floating at around -29% under its intrinsic level of $76.76, at a price tag of US$54.80, based on my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. What’s even more appeal is that WMK’s PE ratio is trading at around 14.34x while its Consumer Retailing peer level trades at, 20.98x implying that relative to its competitors, you can purchase WMK’s stock for a lower price right now. WMK is also strong in terms of its financial health, with near-term assets able to cover upcoming and long-term liabilities. Continue research on Weis Markets here.
KB Home (NYSE:KBH)
KB Home operates as a homebuilding company in the United States. Formed in 1957, and now run by Jeffrey Mezger, the company employs 1,915 people and with the company’s market cap sitting at USD $2.35B, it falls under the mid-cap group.
KBH’s shares are currently hovering at around -64% below its actual level of $73.94, at the market price of US$26.82, based on its expected future cash flows. This mismatch indicates a potential opportunity to buy low. KBH also has a healthy balance sheet, with near-term assets able to cover upcoming and long-term liabilities. Finally, its debt relative to equity is 127.36%, which has been reducing over time, demonstrating its capacity to reduce its debt obligations year on year. Dig deeper into KB Home here.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.