There are a number of great companies in the market today. By using the ModernGraham Valuation Model, I've selected the five undervalued companies reviewed by ModernGraham trading closest to their 52 week low. Each of these companies has been determined to be suitable for the Enterprising Investor according to the ModernGraham approach.
This is a sample of one screen that is included in ModernGraham Stocks & Screens. Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore need to select only the companies that present the least amount of risk. Enterprising Investors, on the other hand, are able to do substantial research and can select companies that present a moderate (though still low) amount of risk. Defensive Investors may also be interested in reviewing 5 Undervalued Companies for the Defensive Investor Near 52 Week Lows – June 2015 while also conducting further research into the following companies.
Be sure to also check out the history of this screen!
Here are the 5 Undervalued Companies for Enterprising Investors Near 52 Week Lows:
Weyerhauser Company (WY)
Weyerhaeuser Company is suitable for the Enterprising Investor but not for the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings stability or growth over the last ten years, and the high PEmg and PB ratios. The Enterprising Investor is only concerned with the high level of debt relative to the net current assets. As a result, Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with further research into the company. From a valuation side of things, the company appears to be fairly valued after growing its EPSmg (normalized earnings) from $0.89 in 2011 to an estimated $1.47 for 2015. This level of growth outpaces the market's implied estimate of 5.88% annual earnings growth over the next 7-10 years, leading the ModernGraham valuation model to return an estimate of intrinsic value above the current price. (See the full valuation)
