FinancialCentre Reports – 2 Undervalued Stocks for you to buy this November
London, England, 2nd Nov 2021, ZEXPRWIRE, Trading stocks has long been a path to riches for fast, savvy traders. FinancialCentre Broker Joe Delaney has seen that these days, even casual investors can take the market by storm — if they know how to make the right moves at the right time. In fact, these days it’s possible even for beginning investors to make money in any kind of market conditions… But you’ll flourish only if you flourish at the bad times as well as the good!
How do experienced investors make money? Do they know something that novices don’t know, or is it just luck? Veteran traders know that successful investing requires skill and discipline. And like any other skill, it takes time to master. That’s why few people become rich simply by buying and selling a few stocks here and there.
When most investors get involved in the market, they often learn about strategies from investment brokers or financial planners. But what these professionals don’t usually tell you is that their approach to the market may not be the best way for you to make money. Businesses need funding to grow and expand. Investors can help by buying shares of stock in a company. Each share represents an ownership portion of the business, and the more shares you own, the greater your claim to any profits or losses that the company might incur.
When investors buy and sell stocks over time, they affect supply and demand for individual companies’ stocks. If investors buy stocks in greater numbers than they sell, the share price goes up. But if investors choose to cash out of stock, the shares become less in demand and the company’s share price falls. In the end, a company’s share price reflects investors’ beliefs about what will happen to the company in the future. That means that buying and selling stocks is really a way of trying to guess which companies are on track for success — and then getting in early enough to make big gains when their business grows!
When you trade stock, you’re betting that you can predict which companies will perform well in the future. And even if your predictions are wrong, the stock market is still a great way to make money in any kind of economy. As long as you buy low and sell high — no matter what’s happening to the global economy — you’ll be able to make money…
What is an undervalued Stock?
An undervalued stock is one that has a low price in comparison to its actual value. This could be because the company is not performing well or faces hard times, or it could happen when investors are pessimistic and the general mood around the industry isn’t positive. Undervalued stocks are great for buying and selling because you know that they’re likely to increase in value soon. Many investors keep an eye for these undervalued stocks because there’s a chance to make significant gains if you can get in at the right time.
Today, with the help of Mr Delaney we have handpicked a few undervalued stocks for you that can prove to be a great investment idea.
1) Century Aluminum Co. (NASDAQ: CENX):
In the global market Century Aluminum is a very small player with a market share of only 0.1%. The company has seen negative growth in its revenues as well as profits for the past three years, but it’s still able to increase its earnings each year by almost 14% CAGR. The company has seen an increase of about 3.4% in its revenues last year, even though the industry as a whole has faced hardships due to low aluminium prices and high electricity costs. The company’s EPS for this year is expected to be at $1.8 which shows that its current share price is almost 8 times lower than what it should actually be. The company has a decent amount of cash in the bank and zero debt on its balance sheet, which shows that if it ever wants to buy any other business or expand its operations it will be able to do so without worrying about where the money is going to come from.
2) Lennar Corporation (NYSE: LEN)
Lennar is a homebuilder which operates in the U.S, Mexico and Brazil. The stock has lost about 13.1% of its value last year but if you take into consideration that it paid out pretty hefty dividends for shareholders during the time frame then you can see how much money investors have actually lost by owning Lennar Corporation shares. Even though the company is currently in a difficult situation with declining revenues and increasing debt levels, it does show some signs of a healthier future. As an example, LEN’s Total Debt to Equity ratio stands at 1.93 which is still under its industry average of 3.79 so the risk isn’t too high for investors to lose money over this investment. The company’s EPS is expected to be at $0.32 this year, even though it was $0.69 last year which shows that shares of Lennar are currently undervalued with almost 70% discount compared to what they should actually be priced.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
Source: FinancialCentre
