These 4 Stocks Are Too Cheap to Ignore NOW

I've unearthed four stocks that look seriously undervalued right now. Each has impressive growth prospects, each has strong Wall Street support, and each scores a leak a ratings from our proprietary quant model. But here's the problem. Some of them are already starting to rise. So if any of them interest you, then you should probably act on them quickly. We're going to start off with a gentleman hidden gem in Tactile Systems Technology with a symbol TCMB. But before we get into the specifics, I should probably introduce myself. I'm Steve Wright my sir, but everyone calls me Wrighty. I'm a partner at Wall Street Zen where our quant rating system identifies the stocks with the strongest potential to outperform the market. Now, if you enjoy discovering under the radar stocks and would like to discover even more, then do yourself a favor and hit that like button. It tells the algorithm to put more content like this in front of you in the future. All right, back to Tactile Systems. This company makes some medical devices that treat chronic swelling conditions like lymphedema. Their flagship system is a pneumatic compression device uh patients use at home. Not a flashy business, but a very good one. And here's a detail that tells you a lot about the quality. This is is nearly a debt-free company. When money is tight and rates are high, a small cap that doesn't owe anything to anybody is playing on easy mode. It can invest, acquire, and ride out a rough patch without sweating a loan payment. With this one, we've got a really interesting situation on our hands because they are enjoying some serious earnings momentum. That was on full display in the most recent earnings report where they more than doubled the street estimate. Uh those kind of earnings beats do not grow on trees. And yet the stock actually sold off after the report. Kind of a head-scratcher, right? We're talking about a double-digit decline. So here's what happened. Management trimmed the top end of its growth outlook for the year ahead from about 12% growth down to 11% and flagged some near-term choppiness in the timing of orders flowing in. Not a change in the long-term growth story, but enough for a jittery market to hit the sell button first and ask questions later. When a profitable growing company gets marked down on a modest guidance tweak, that's worth a closer look. Not a guaranteed formula for success, but the kind of pullback that can hand a patient investor a great entry point. As promised, we are delivering undervalued stocks today. That shows up best with the PEG ratio, which sits around 1.0. Please remember, the average stock these days had a PEG ratio about 1.5. So, that's a nice discount to get started with. As we take a look at the classic discounted cash flow model, it suggests the stock could be worth nearly three times its current price. Now, that that version of value screams massive discount. As you would expect for a small cap under 1 billion market cap, the Wall Street analyst coverage is pretty light with only three analysts following shares. The good news is all three of those analysts believe it's a strong buy recommendation, and all of them have price targets that call for at least 50% upside in the coming year, whereas the street high from Piper Sandler forecast even better 75% upside for these shares. Our quant model backs up this bullish outlook. That's because the Zen ratings looks at 115 different fundamental and technical factors, and then boils it down to a single letter grade of A through F. Indeed, you want a portfolio filled with the A-rated stocks as they have historically outperformed the S&P 500 by nearly 3:1. Now, Tactile Systems is in the elite tier with an A rating ranking in the top 5% of all stocks tracked across those 115 factors. Now, we gain further insight on its strengths and weaknesses via seven underlying component grades. So, let's take a look at those now. We have three different grades clustered together. I'm talking about sentiment, safety, and financial strength all coming in the top 13% of all the stocks we track. Now, value is an notch better in the top 11%. Note, this is based on 21 different measures of value. And the standout grade is growth in the top 9%. Now, value and growth are a powerful combination because they are usually the most likely catalyst to propel a share price higher. Okay, the biggest risk is reimbursement. Tactile depends heavily on Medicare and private insurers. So, tougher coverage rules or lower reimbursement rates could quickly slow sales and squeeze profits. But, in Tactile, we have growth on full display from a 100% earnings beat. Value shows up from many different angles, plus top-notch Wall Street support, and a stellar quant rating review. This all greatly increases the odds of future outperformance and a great way to start our video today. Before I continue, if you like discovering hidden gem stocks, the best thing you can do right now is sign up for my next live training session this coming Monday. The focus is on timing 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. Now, onto another stellar value stock you probably never heard of, but will likely be glad you did as I lay out the bullish thesis. Here we're talking about Jazz Pharmaceuticals with the symbol of, well, Jazz, right? They develop treatments for uh sleep disorders, epilepsy, and cancer. This is a generally profitable pharma company with gross margins around 88%. Truly elite level, and it may be trading at a steep discount to what it's worth. Now, a discounted cash flow model estimates Jazz is worth probably 2 and 1/2 times its current share price. But, sometimes simple models like this don't tell the full story, so let's dig a little bit deeper. Further supporting the undervalued story, you've got a PEG ratio of about 0.7. Now, I shared with the last stock, uh the average uh PEG ratio these days is 1.5. So, just like the discounted cash flow, there is over 100% upside to fair value in this model as well. This may seem surprising considering that Jazz has run hard, but as the week I'm recording shares are up over 100% in the last year. Yet, despite more than doubling, it still is a major value or growth oriented two different approaches I shared. Typically, this tells you that earnings are accelerating even faster than the share price, which bodes well for the future. Wall Street is leaning into. 15 of the 16 analysts see the stock as either a buy or a strong buy opportunity. Now, one of the loudest voices is David Amsellem at Piper Sandler, who ranks in the top 4% of all analysts we track for his stock picking performance, or I should say stock picking excellence. Meaning that when he makes a call, it pays to listen. Now, his price target implies significant upside from here, which is our third value confirmation. The Zacks Earnings Quant model is pretty jazzed about these shares as well, leading to another elite A-rated stock. In this case, they're in the top 2% of every stock we track, the hallmark of a stock with rock-solid fundamentals. Now, let's consider those component grades. Safety comes in the top 23%. This is a really nice benefit that often comes with healthcare stocks. Growth is in the top 14%. This is based upon 22 different measures of growth, not just earnings, but revenue, cash flow, EBITDA, and more. Momentum top 7%, financial strength top 6%, and the standout grade, as you would expect in this video, is the top 1% showing for value. This is our fourth and most vital value confirmation. Now, we have multiple positives taking place for Jazz. The recent share price momentum is born of earnings momentum. So, even with the surge in the shares, they are still woefully undervalued as can be seen from four different vantage points. This is why Wall Street pros and the Zacks Earnings are all pounding the table for a lot more upside in the months and years ahead. So, that was a stock trading at a nice discount, but the next one might be the cheapest by the raw numbers. Now, a quick ask before we get to that stock, if you're finding this video useful, then hit the subscribe button and ring the notification bell. And that's because I publish data-driven stock analysis like this every single week, and I'd hate for you to miss out on the next ones. All right, next up is Starbulk Carriers with the symbol of SBLK, and this one is cheap in a way that truly jumps off the page. In case you're not familiar, Starbulk is the largest US-listed dry bulk shipping company. They own and operate a huge fleet of vessels that haul dry cargo like iron ore, coal, and grain across the world's oceans, right? Let's get right to that deep value story given their rock-bottom PEG ratio of only 0.37. Shares would need to rise fourfold just to match up with the valuation of the average stock these days. And at the same time, growth estimates are also impressive. Looking forward, earnings are expected to grow at about 33% a year, which is about twice the industry average. Note that the growth cycle might have some long legs because the shipping industry has under-invested in vessels going back decades. So, high demand for shipping and low supply equals higher rates equals higher profitability. And here's a nice bonus. You're getting paid to wait for shares to hit their stride given a hearty dividend yield north of 3.5%. However, Wall Street is pretty much sitting this one out with only one analyst on board. That can be a positive over time if the earnings keep ramping up leading to new strong buy recommendations getting printed. Each one would be pushing shares higher to the benefit of the folks owning the shares. The light from the Zacks Ratings shines brightly where analyst coverage does not. We have another top-tier A rating because the stock sits in the top 1% of all stocks tracked owing to truly sterling fundamentals. Now, not only is it top-rated stock, but it's in a top-rated industry. Shipping currently has an industry rank of A making it one of the strongest scoring corners of the entire market right now. Let's forge ahead with those component grades where it enjoys a top 14% showing for momentum. Growth is not too shabby in the top 11%. Financial strength top 8%. Note that growth and financials are the two most important categories to point out stocks more likely to score earnings beats in the future. And it only gets better from here. The AI grade is in the top 7% and that is based upon our usage of AI to find stocks more likely to outperform based upon clues in the data. And the standout grade, which is appropriate for a cheap stocks video, is value in the top 4% of all stocks we track. The honest trade-off here is that shipping is cyclical. Profitability rises and falls with changes in global trade. So, this is more of a timely trade right now and not a set-it-and-forget-it long-term pick. But this current upside looks to have legs, which is why shipping is a top-rated industry. And in this case, you're getting one of the highest-rated stocks in the group trading at a massive discount to fair value. Before we get to our last value stock, just one quick thing to ask you. If you want to stay one step ahead of the market, then join me live every Monday because that's when I share my updated market outlook and trading plan to outperform. This is also when I unveil my trade of the week based upon our proven Zen earnings quant model and my greater than 40 years of investing experience. It's a free event, but you do need to register. So, do that now. Just go to wallstreetzen.com/live or click the link in the description below or scan the QR code that's coming up on your screen. Just pause the video for a moment to sign up. I'll be patient and wait for you and then I look forward to seeing you there on Monday. Now, it's time to close out this value stock list with a bang. That's because Wall Street analysts are pounding the table on nearly 100% upside potential in the year ahead for this stock. And that company is MKS Incorporated with the symbol of MKSI. They're a worldwide supplier of the sophisticated instruments, components, and process control systems that go into making semiconductors. Now, this is a classic picks and shovels play on the whole AI build-out which has so greatly benefited chip makers. Now, in this case, have to decide which chip maker is going to win because they supply tools to just about all the chip makers. For as much as this video is about value, I need to point out the explosive growth taking place here. That's because Wall Street is forecasting 84% earnings growth this year over last. Lastly, it's a value stock, too. Not a super deep value stock like the previous ones. This is about more GARP stock, right? Which as you know means growth at a reasonable price. And that shows up in their 0.95 PEG ratio. Not as low as the others, but still plenty attractive. Also helping the value story is that like many of the AI related stocks, they have seen a pretty hefty round of profit-taking. This has MKSI down about 30% from the highs, making now a very appealing time to snap up your shares. And Wall Street is generally pounding the table with 13 analysts boasting buy or strong buy recommendations. The right now, the average fair value target calls for about 30% upside in the year ahead, but note the street high is for 100% upside. Now, that comes from CJ Muse with Cantor Fitzgerald, who is ranked in the top 1% all analysts for a stock picking prowess. A guy who is worth listening to for sure. The Zen rating seals the deal for the stock. As you probably gathered by now, all the stocks in the video today have a top-tier A rating. On top of that, it's the number one rated stock in the A-rated industry. In fact, it tops the list of more than 20 high-quality names. So, it's never a bad idea to go for the best stock in one of the best industries. As you might expect, the uh component grades are also quite strong. Value ranks in the top 19% of stocks. That's truly impressive given that shares have rallied so strongly in the past year. Sentiment top 10%. That tells you the smart money is already keyed in uh to this company. Momentum top 9% uh that cuz that's looking at the momentum going back the past year. And the standout grade is growth top 8% of all stocks. Now, we put it all together, you have a rare value play in the thriving AI space. What's not to like about that? And that makes for a fitting end to our stock list today. So, there you have it. Four different ways to find serious value in today's market. A couple of these have already started to run, so if any of them speak to you, it pays to do your homework sooner rather than later. That's a good time to remind you that Zen ratings are updated daily. So, it's a very good habit to check those ratings before making any buy, hold, sell decisions. Gladly, you can get those ratings anytime for free on our quote pages at wallstreetszen.com. So, be sure to bookmark the site for all your future visits. Now, I want to hear from you. Which of these four value stocks is your favorite? And is there a cheap stock you think I should highlight in a future video? Drop it all in the comment section below to let our community weigh in. The next thing on your to-do list should be to watch the video that's popping up on your screen now. That's where I feature four high-growth stocks I'd buy and hold forever. >> Mhm.