Retail investors always look for some undervalued, unknown and emerging stocks. Retail traders have several methods which can help them uncover new information. Just to let the readers know, an undervalued stock is when the stock price falls to an amount which might be better valued than what the equity market gives it the credit for. These are the stocks which are typically purchased when investors are of the view that they can sell such stocks in the future at a price which will be more than their purchase price. That is the main reason why these are called “undervalued stocks.”
Investors can decide whether or not a particular is undervalued just by comparing the current market price of the company with the average EPS over time. The ratio of these 2 numbers lets an investor know how undervalued (or overvalued) a particular stock is presently.
However, this article will help you in identifying undervalued stocks. Following are the 5 undervalued stocks which investors are continuously tracking:
1. Tupperware Brands Corporation
This is the consumer products company, which designs innovative, functional and environmentally responsible products. Tupperware Brands Corporation distributes products into around 70 countries.
Its Board of Directors has been having discussions with its management to focus on improvement of its capital structure and near-term liquidity. It has worked with financial advisors to help in securing supplemental financing. Apart from this, the company has held discussions with potential investors or financing partners.
Over the past couple weeks, certain retail investors have lapped up shares of the company, which can be because of increased short interest and strong trading volumes.
The company has increased prices to protect its gross margins, discussed with banks to offer more financial flexibility, accelerated its re-engineering efforts as part of ongoing commitment to right size the business, and developed innovative programs to significantly reduce inventories in the fourth quarter,”
The stock of the company has increased from $0.6654 on July 20, 2023 to $4.27 on July 31, 2023.
2. UroGen Pharma Ltd.
UroGen Pharma Ltd is the clinical stage biopharmaceutical company which is focused on making novel therapies. These are designed to change the standard of care for urological pathologies. This stock is highly volatile and it has seen numerous trading halts.
On 27 July 2023, the company announced positive topline data from its Phase 3 trials ATLAS and ENVISION studying UGN-102 (mitomycin) for the intravesical solution in patients having low-grade, intermediate-risk non-muscle invasive bladder cancer (LG-IR-NMIBC). Both ATLAS and ENVISION trials were able to meet their primary endpoints.
The company has recently announced that it has entered into definitive securities purchase agreement in connection with the private placement to certain selected institutional and accredited investors. Private placement was led by RA Capital Management L.P. and Great Point Partners LLC. This also included Acorn Bioventures, Monograph Capital and Horton Capital Partners Fund, LP.
The company expects to get gross proceeds of ~$120 million, before the deduction of placement agent commissions and other expenses related to offering.
3. Vicor Corporation
Vicor Corp has been manufacturing and marketing modular power components and complete power systems. The company offers modular power converters and configurable products, advanced power component products and several other related products.
Shares of the company has seen a significant increase recently with numerous news items supporting the stock and improving the sentiments of investors.
Revenues of the company for 2Q ended June 30, 2023 came in at $106.7 million, exhibiting 4.5% growth from $102.2 million for the corresponding period of the previous year. The company stated that further performance improvements should be supported by 5G MCMs, increasing the current density by nearly 3x.
Investment analysts at Craig Hallum initiated a coverage on the stock and they have upgraded the stock from “Hold” rating to a “Buy” rating. Price target has been increased to $80 from $60.
4. Tilray Brands, Inc.
The company is a Canadian producer which cultivates and sells medical and recreational cannabis. It has reported results for 4Q and fiscal year ended May 31, 2023. In 4Q, net revenue of the company grew by 20% to $184 million against $153 million in the prior-year quarter.
For FY24, the company expects to post adjusted EBITDA of $68 million-$78 million, exhibiting growth of 11% to 27% in comparison to FY23. Apart from this, it expects to generate positive adjusted FCF.
The company has seen improved investors’ sentiments as its shares traded higher. This comes after the company announced the renewed national brokerage agreement with Great North Distributors, Inc. As per the agreement, Great North will continue to act as an exclusive representative for the company’s full portfolio of recreational cannabis products throughout Canadian marketplace, except Quebec.
There has been some optimism which continues to prevail for the cannabis industry. As a result, such stocks have gained significant attention. Notably, traders continue to watch Congress for potential federal legalization proposals in US.
5. Ultralife Corporation
Ultralife Corp offers products and services which range from power solutions to communications and electronics systems to customers globally in the government and defense, medical, safety and security, energy, and industrial sectors.
Recent upward movement primarily because of its healthy results for 2Q. Sales of the company came in at $42.7 million, representing 32.9% year-over-year increase and its adjusted EPS was $0.29 against $0.03 for 2Q22. Gross profit of the company came in at $10.6 million, or 24.8% of revenue, in comparison to $7.6 million, or 23.8% of revenue, for the same quarter of the previous year.
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