For value investors, the crucial goal is to identify undervalued — and underappreciated — companies to target before the broader market gains interest and, in theory, correct the delta between the stock price and the true fundamental value. Ideally, this means investing in a company’s stock while that company shows signs of being undervalued but before the stock price rises.
However, in reality, many of these companies do not make it onto investors’ radars unless they have some price movement – after all, there is no guarantee that the market will, in fact, correct the pricing of value stocks to match their fundamental value. Nor will it do so according to any specific timetable. In this way, finding companies that have a recent history of stock price growth but also continue to provide key indicators of value may be the ultimate goal for some value investors.
Diebold Nixdorf: Profits are lost, but improving margins and value signs are flashing
Diebold Nixdorf today
Diebold Nixdorf
(As of 12/16/2024 ET)
- 52 week range
- $27.43
▼
$51.81
- P/E ratio
- 367.41
- Price target
- $62.50
Diebold Nixdorf New York Stock Exchange: DBD It is a financial and retail services company that may be undervalued despite its recent record of share price gains. DBD shares rose more than 73% in the year ending December 12, 2024. That’s despite a brief decline in early November after the company announced Worse than expected earnings resultsIncluding sudden loss.
However, Diebold executives do not appear to be impressed by the one-time results, as the company says it expects to achieve the upper end of its revised EBITDA guidance range by the end of the year.
Diebold has been making efforts to streamline its operations and enhance profitability and has achieved nearly two years of gross margin expansion in the process. Furthermore, Diebold has a P/S ratio of just 0.5, making it a strong value candidate. This may be why the company is rated a Buy with 30.5% upside potential, despite the recent quarter’s turmoil.
CMB.TECH: Shipping Company Renewals
Euronav today
(As of 12/16/2024 ET)
- 52 week range
- $8.59
▼
$21.26
- Dividend yield
- 6.03%
- P/E ratio
- 1.45
CMB.TECH New York Stock Exchange: CMPTformerly known as Euronav, is actually trading at a 52-week low as of December 12, 2024, but this is largely because the company’s share price soared in mid-2022 and remained at that level until October 2024, when it fell to the previous level. . Levels. The shipping company generated more than $98 million in revenue last quarter as it announced a new time charter deal to push its backlog to more than $2 billion.
CMB is taking steps to diversify its aging fleet, selling some of its ships and acquiring new ones. At the same time, the company is making efforts to decarbonize its operations, part of a growing trend toward renewable energy in shipping. All of these efforts may catch the attention of investors.
The shipping industry could be in a tough spot heading into 2025 given the global political climate, so it’s possible that CMB has not yet hit bottom. However, with a forward P/E ratio of 1.6, the company already appears undervalued.
StealthGas: Stocks decline, but fundamentals are strong
Ghost gas today
(As of 12/16/2024 ET)
- 52 week range
- $4.89
▼
$8.84
- P/E ratio
- 2.77
Another relatively small player in the shipping and transportation industry, StealthGas Inc. NASDAQ:GASSprimarily serves LNG producers around the world. This company, which has a market capitalization of just $190 million as of December 13, 2024, has a price-to-earnings ratio of 1.2 and a debt-to-equity ratio of just 0.13.
Ghost gas Latest quarterly resultsreleased on November 25, shows a highly profitable company that is growing rapidly. The company reported nearly $56 million in net income during the first three quarters of the year, an all-time record and a 29% increase compared to the same period in 2023. It also saw revenue for the quarter increase nearly 17% year over year. -year.
The company is also aggressively repaying debt, with debt payments totaling approximately $107 million in the first three quarters of 2024 and maintaining a significant cash balance to continue these efforts.
The fact that GASS shares are down nearly 18% in the year ending December 13, 2024, is perhaps more a reflection of the challenges and uncertainty facing the broader shipping industry in recent months than StealthGas itself. StealthGas has not yet been rated by Wall Street analysts, but value investors may nonetheless consider indicators that it may be poised for a breakout in more favorable industry-wide conditions.
Before you consider StealthGas, you’ll want to hear this.
MarketBeat tracks the highest-rated and best-performing research analysts on Wall Street and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches up… and StealthGas was not on the list.
While StealthGas currently has a “Hold” rating among analysts, the top-rated analysts think these five stocks are better buys.
View the five stocks here
Just get into the stock market? These 10 simple stocks can help novice investors build long-term wealth without knowing options, techniques, or other advanced strategies.
