Via ZEXPR, This and the last years have proven to be very damaging to the stock market and stick holders. Pandemic boosted the already present turmoil in the market and hence everyone had a fear of losing everything lingering on their heads. Now that the vaccine has rolled out, we are seeing the profits return gradually but this must take time. Since a lot of traders have suffered a lot of financial losses at the hands of Covid, we present you with a couple of undervalued stocks that can help you get back on track in the near future.
What is an Undervalued Stock?
But before that let’s have a look into what is an undervalued stock. These are regular stock but what happens to be the most attractive part of the game is that it is sold at a price that is well below their intrinsic value. All games investors have usually bought an undervalued stock at least once in their lives.
Iron-Bits Broker, Mr. David Scott says that undervalued stocks are considered to be your ticket to the world of large sums of profits because of their promising nature.
These stocks have low share prices, high growth percentage of their earnings per share and have a very reasonable price to earnings ratio. Stocks from many sectors such as construction, diagnostic labs, banks, mining and retail brands are regarded as undervalued. Let’s say that a stock is worth 2000 dollars but is sold at a price of around 1000 dollars then it is regarded as undervalued. In short, you are buying Gold at the price of Steel. Who would ever not want that? Do not forget that such stocks are consistently profitable and it is eminent that they are on a high growth trajectory.
New York Community Bank
New York Community Bancorp, Inc. is a commercial bank which is based in New York, America. They have a total of 225 branches all around the globe in places such as Florida, New Jersey, Ohio, Arizona and New York. This bank happens to be one of the banks of the United States with a large clientele. It was founded in the year 1859, by Dominick Ciampa. As of 2017, they had total assets worth 49.124 billion dollars and total equity of 6.292 billion dollars. In the same year, the company had more than 3000 employees serving a large number of people.
As of now, the back has a total market cap worth 5 billion dollars and in the year 2020, the bank had a revenue of more than #1 billion. Just recently, the bank has announced that it has got on a path of business expansion and diversification and hence, it is soon going to acquire the Flag Star bank. In the last quarter of 2020, they had stakes worth 244 million dollars which went up from a previous value of 218 million dollars.
According to Mr. Scott, all these facts are figures clearly suggest that considering buying undervalued stocks of New York Community Bank can prove to be a wise choice, keeping in mind that the Investment Advisory CFRA has upgraded it from a status of “buy” to “hold”.
eBay is another American based Multinational company. It is an e-commerce website that works around the facilitation of business to consumer and business to business sales via the online portal. The company was founded in the year 1995 by Mr Pierre Omidyar and had a total of 13k employees in the year 2019. They made a revenue worth 10.27 billion last year which gives them a prominent position in the market. They also provide their users with a mobile app to make access to the website easier. A large number of distributors, liquidators, importers, retailers, exporters all around the globe make use of the popular forum.
The company has a market cap of more than 43 billion dollars and in the year 2020, they had a revenue of around 10 billion dollars. By the end of 2020, the fourth quarter of the firm, held stakes that were worth 4 billion dollars. In Mr. Scott’s opinion that eBay is a valuable choice because soon they are going to receive shares worth 540 million dollars from Adventia which have a current value of 8.3 billion dollars. He says that according to the statistics, this years’ dividends will be beneficial for holders.
Owing to the liquidity, uncertainty and volatility of the stock market, nothing can be considered as the final word but experts think that these two stocks can prove to be a good buy even if we keep the turbulent circumstances under consideration. This is primarily because of the fact that they are undervalued and this property cuts down risks associated significantly.
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.