4 Most Undervalued Stocks In The Market Right Now (Near 52 Week Low)

I've unearthed four deeply undervalued stocks with exciting upside potential and I will share them all with you today. But here's the twist. Each is trading near its 52-week low. I know that last part has you tempted to skip this video, but hang in there with me for a minute to appreciate the unique investment opportunity unfolding before us. Yes, most companies trading at their lows are absolutely dongs with fleas, truly terrible companies with their earnings going from bad to worse, but sometimes the market simply misprices stocks, meaning we can use enhanced computer models to unearth hidden gems with bright earnings outlooks and sparkling fundamentals. They just happen to be heavily discounted at this time. We will start with Cha Yi, all right? That is the fast-growing tea house brand out of China. Yes, drinking tea. Think of a premium tea version of the big coffee house chains like Starbucks. They have thousands of locations and a modern tech-forward ordering setup, freshly public and expanding at a very healthy clip. Now, before we press on to tell you the rest of that story, I should probably tell you who I am. I'm Steve Wrightmeiser, but everyone calls me Righty. I've been investing for over 40 years and currently a partner at Wall Street Zen, where our quant rating system pinpoints the stocks with the highest likelihood to outperform. And if you like the idea of finding severely undervalued stocks, then do me a favor and hit that like button. It tells me to record more videos like this in the future. Back to Cha Yi, right? What makes them interesting right now is that they are expanding like gangbusters. In fact, Wall Street analysts predict 46% earnings growth in the coming year. And yet shares are down nearly 2/3 since their IPO high last year. This is pretty typical behavior for a well-hyped IPO, but at some point, it's time for shares to start dancing to the beat of its stellar growth prospects. Here's the catalyst that might spark that long-awaited bounce. Company management is feeling so good about their future outlook that they just initiated a fresh share buyback program. Let's think about that for a second. A company that is aggressively expanding their retail footprint needs ample cash for the rollout. Yet they are producing enough money to keep that expansion on track and still buyback shares. That tells you management is very confident in their future growth prospects and what that means for the share price. Wall Street is starting to take notice as well. That includes the strong buy recommendation from an analyst at JP Morgan pounding the table for nearly 60% share price gains in just the year ahead. Now, I suspect more analysts will come out of the woodwork over time with fresh buy recommendations helping to push shares higher. Now it's time to see what our coveted quant model, The Zen Rings, has to say about these shares. Now, all in all, we analyze over 46 hundred stocks across 115 separate factors. Then we boil it all down to an intuitive letter grade of A through F. Note the threshold to become an A-rated stock is to be in the top 5% of our analysis. Chai Yi is barely outside that in the top 6%. So technically, it's B-rated which means a buy recommendation, but perhaps calling it B+ is a lot more accurate. We have also created some component grades that help us appreciate a stock's unique strengths and weaknesses. Growth provides a good starting point for the conversation here in the top 20% of all stocks analyzed. Then sentiment comes in top 18%. That means the smart money is leaning into these shares. Financials top 14% and the standout grade, as you would expect in this video today, is value in the top 5% of all stocks after a full 21 factor review. The one weak spot is safety, which makes sense for a Chinese growth stock. Shares are simply going to be more volatile than your average stock. But with 46% earnings growth on the table, plus a fresh share price buyback program, and a strong review from The Zen Rings quant model, then there is plenty of good reason to scoop up these shares at current bargain basement prices. Now we are going to flip the page from Chai Yi, which is a beaten-down growth story, to a real under the radar sleeper pick. They are riding a 10-quarter earnings beat streak and yet almost no one is paying attention. Quick aside before we get to that sleeper pick, if you enjoy discovering hidden gems, then the best thing you can do for yourself right now is to sign for my next live training session this coming Monday. The focus is on timely market insights plus my top picks. Now it's totally free, but you do need to sign up. Do that now to join me this coming Monday. Just go to wallstreetzen.com/live. Back to the sleeper pick I teased about. That company is Fibro Animal Health with the symbol of PAHC. Now, here's a corner of the healthcare market people forget about. Fibro makes the medicines, vaccines, and nutrition that keep livestock and pets healthy. It's essential. It's a global business hiding in one of the least glamorous corners of healthcare, which may be exactly why this bargain has slipped off the radar for most investors. The stock hit a high of $60 back in April, and since then it's been downright hammered falling by more than 40%. So, here's what spooked investors. Despite another strong quarter, the market zeroed in on a weaker cash flow and hefty debt load following a major acquisition. But, here's where things get interesting. The underlying business has kept delivering as proven by 10 straight earnings beats. Who smells the indeed? The growth party appears far from over as Wall Street expects Fibro's earnings to grow nearly 23% a year going forward. Well ahead of the industry pace. Even better than the growth picture is what is happening on the value front. That comes into full focus with the ultra-low PEG ratio of just 0.64. Let's remember, the average stock is trading for a PEG ratio of 1.5. So, Fibro is dirt cheap at this time. The Zen Ratings Quant Model confirms the excitement given that Fibro scores in the top 10% of all stocks for a strong fundamental profile. This amounts to a B rating, which is a buy recommendation. Let's break it down further with our component grades. Now, I know you're going to see a lot of C-rated grades coming across the screen here, but don't panic. C is the biggest category which includes 60% of all stocks, right? When you're using a bell curve and 60% lie in a C grade. So, quite often a stock can be C-rated in a category and still yet be well above average if not exceptional in that category. Now, for example, financials and safety, C grades, but they're both in the top 40% of all stocks. Then we jump up to top 27% for growth. Here again, C grade, but top 27%. Sentiment, top 23%. On their own, none of these would be particularly impressive, but when you put them all together, it's a very well-rounded fundamental profile. The cherry on top, given what we're talking about in this video, is value, which ranks in the top 3% of all stocks in our system. That's what we can really hang our hat on here. Where it gets dinged the most is momentum, scoring near the bottom of the pack, but that's kind of the whole point of this video because the attractive growth and value story should trump momentum for patient long-term investors. So, hopefully, you'll agree this is an appealing setup worth a closer look. Quick ask before we move on, if you are getting value from this video, then please hit the subscribe button and notification bell because I publish data-driven stock analysis like this several times per week, and these actions ensure that you don't miss any of my future videos. Let's forge ahead to our third undervalued stock in Amneal Pharmaceuticals with the symbol of AMPH. They are a specialty pharma company that makes injectable and inhalation medicines, the kind of complex, hard-to-copy drugs that hospitals and pharmacies rely on every single day. Not a household name, but a real profitable business with deep roots. Let's first talk about the price action. The stock is still stuck near the lower end of its 52-week range, but you wouldn't know it from the latest earnings results. That's because Amneal Pharmaceuticals just beat Wall Street expectations. Revenue was up nicely, even better was the stellar earnings beat, nearly 50% above expectations. That growth party looks far from over as the street expects them to continue to grow at a much faster pace than their peers. The growth piece is now in place. Now, let's check out the value from just like the last stock, PEG is the best way to show you that value story. As we are talking about an ultra-low 0.49 PEG ratio, that means shares would literally have to triple to reach the average value of a stock these days. Now, typically, when there is such a big growth and value disconnect, it means investors are asleep at the wheel. That often includes Wall Street, where there is only a single buy recommendation at this time. Gladly, it comes from a Surge Balanger of Needham, who ranks in the top 2% in terms of actual stock picking performance. So, not only is he recommending these shares a buy, but sees about 45% upside potential to fair value in the coming year. I actually think that upside will prove to be light given what I shared about the PEG ratio, and given what I am about to share with you now in terms of their stellar Z ratings profile. Here we have our first elite A rated stock, which is a firm strong buy recommendation. That's because A rated stocks have historically outperformed the S&P 500 by nearly 3 to 1 over the years. The component grades reveal broad strength for the stock starting with the top 19% showing for sentiment. That's our smart money signal. Growth comes in the top 16%. That is the best at foreshadowing more earning speeds ahead. Financials top 15%, safety top 11%, and the standout grade in a class of its own is value in the top 1% of all stocks analyzed. Value investing is based on the principle the market is not right all the time, and here we have a prime example of a healthy growing company that is trading for far less than fair value. The kind of value that doesn't exist for long. So, if it appeals to you, you should probably take action soon. Under the heading of saving the best for last, then you will appreciate that our next stock is the highest rated stock on the whole video today. And before we get there, just one quick thing. If you want to stay one step ahead of the market, then join me live every Monday. That is when I share my updated market outlook and trading plan to outperform. It's also when I unveil my trade of the week based upon our proven Z ratings quant model, and my greater than 40 years of investing experience. It's a free event, but you do need to register. So, just do that now by going to wallstreetzen.com/live, or click the easy-to-use link in the description below, or scan the QR code on your screen. Just pause the video for a moment. I'll be patient and wait for you, and I look forward to seeing you there on Monday. Here's something a little different to close on. The other three stocks are all still pinned near the bottom waiting for the turn to happen. This one has already started to make the move, which improves the odds of future success. That company is Omnicell with the symbol OMCL. If you have ever picked up a prescription, then there's a good chance Omnicell was working behind the scenes. They build the automation hospitals and pharmacies used to manage medication, the uh dispensing robots, the tracking systems, the software that keeps the whole process safe and accurate. And here's why it's trading at such an ample discount. The stock sold off after its recent report, even though the numbers underneath were strong. Earnings came in well ahead of a year ago. Uh revenue beat expectations and management raised their full year earnings outlook. Unfortunately, the market fixated on softer guidance for the one upcoming quarter and not looking at the bigger picture and they heard that and they hit the sell button hard. That overreaction to one quarter weakness instead of the full year strength is creating a great value opportunity for us right now. That valuation gap is not just my opinion. Here we have three Wall Street analysts pounding the table with strong buy recommendations. The value gap shows up in spades given that the average price target implies upside potential of about 45% in coming year. However, the street high target is calling for 75% share price upside, which I think is a lot more on the money. What is driving that upside potential? It's not just the recent sell-off in shares, it's also the impressive growth story unfolding at Omnicell. Wall Street forecast 41% earnings growth in the coming year. That is nearly twice the pace of the industry average. Now, here is the confirmation from our quant model. Now, according to Zen rating system, Omnicell earns an A grade, a strong buy recommendation because it sits in the top 2% of all stocks. And here's the big bonus that makes it a fitting finale to our video today. Omnicell is the number one ranked stock out of 40 in the highly rated health information industry. Never a bad idea to go for the best stock when the best industries, right? So, as you might expect, this strength shows up in the component grades. Sentiment comes in at the top 19% of all stocks, growth uh top 11%, which uh foreshadows more earnings beats ahead. Uh safety top 9%, which is the beauty of healthcare stocks, growth and safety together. And the standout, value in the top 8% of all stocks we track. It's the mark of a well-rounded value stock, rather than a stock that's cheap because the business is going from bad to worse. Now, just a reminder, one big difference with the other three stocks today is the shares are already starting to bounce. Yet, according to both Wall Street fair value targets in the Zen Ring's profile, there is great reason to believe in a lot more upside ahead. That's a fantastic note to end our video on today. So, there you have it. Four great companies the market is sleeping on, and yet each has stellar growth and fundamental profiles that only make the value proposition that much more appealing. Now, indeed, all four are flying under the radar now, perhaps not for long. So, do your research on each and determine if they have a rightful place in your portfolio. Just remember, the Zen Rings are updated daily, so always a good idea to get the most up-to-date information before making any buy, hold, sell decisions. Luckily, you can pull a free rating on over 4,600 stocks just by typing in the ticker at wallstreetszen.com. And be sure to bookmark the site now for all your future stock research efforts. Now, I want to hear from you. Which of these four stocks do you like the most? And is there any undervalued name near its lows that I should feature in future video? Drop it all in the comment section below to share with our investment community. And if you want more timely stock ideas, then check out the video coming up in your screen right now. In that one, I share three stocks that recently crushed earnings that are still compelling buy opportunities.