Undervalued stocks are basically shares that sell for less than their actual worth. It’s calculated through detailed money-related checks and comparing them to similar market offerings. The real worth of a company is usually figured out by looking at how much it earns, its revenue, cash flow, and its potential to grow. If a stock’s current price in the market is lower than its worth, it’s called an undervalued stock. These stocks let investors buy a part of a company for a lower price than it’s worth. This could mean bigger returns if the market price adjusts to the real worth.
Investing in undervalued stocks has its good and bad sides. The good side is these stocks give a safety margin, meaning they can grow before reaching their true worth. This means you could earn a lot if the market price adjusts to the real worth. Also, since they’re already cheaper, these stocks might not be as affected by big market falls.
The bad side is finding these undervalued stocks needs a deep understanding of finance and a thorough study of the company’s numbers. There’s also a chance a stock is cheap for a reason. For example, problems in the company or if the industry is doing badly. And, even if a stock is truly undervalued, there’s no surety of when or if the market will recognize its value, which could mean lost chances. So, while undervalued stocks can be a good chance to invest, they also need careful study and patience from the investor. With that being said, here are two undervalued stocks to watch in the stock market right now.
Undervalued Stocks To Watch Right Now
Realty Income Corp. (O Stock)
Starting off, Realty Income Corporation (O) is a well-established Real Estate Investment Trust (REIT) known for its monthly dividend payments, earning it the nickname “The Monthly Dividend Company.” Specializing in free-standing, single-tenant commercial properties in the United States and Puerto Rico, it provides investors with a steady income stream from over 6,500 properties leased to around 50 different industries.
In July, the company announced when it will report its second quarter 2023 financial results. In detail, the company is set to report its Q2 2023 results on Wednesday, August 2, 2023, after the close of the U.S. stock market. To briefly, recap, last quarter Q1 2023, the company posted earnings of $0.98 per share, with revenue of $944.40 million.
Year-to-date, shares of O stock have fallen by 4.73% so far. Meanwhile, as of Tuesday’s closing bell, Realty Income stock closed the day trading day at $60.78 a share.
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Verizon Communications (VZ Stock)
Next, Verizon Communications (VZ) is one of the largest telecommunications companies in the world, offering a wide range of services including wireless communications, internet access, and television services. The company is recognized for its robust network infrastructure and significant investment in 5G technologies.
Just last month, Verizon Communications reported its second quarter of 2023 financial results. Diving in, the company posted earnings of $1.21 per share, with revenue of $32.60 billion. This came in higher than Wall Street’s consensus estimates for the quarter which were earnings of $1.17 per share, on revenue estimates of $33.38 billion. Though, the company’s revenue dropped by 3.53% versus the same period, the year prior.
In 2023 so far, shares of VZ stock have retreated by 16.67% year-to-date. With that, as of Tuesday’s closing bell, Verizon Communications’ stock is trading at $33.43 per share.
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