SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Young and Older Folk Portfolio
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: chowder2/24/2022 5:19:36 PM
5 Recommendations

Recommended By
INCOGNIT0$
Menominee
mmarra200
stardusting
Waitress

   of 21795
 
Re: Undervalued Companies ...

With the market in correction mode and inflation and higher interest rates expected to cause further market uncertainty I think it is important to look for companies that are not only undervalued but expected to show high earnings growth in 2022.

Here are a few companies that meet my requirements:

Intrinsic Value - Intrinsic value is a measure of what an asset is worth. This measure is arrived at by means of an objective calculation or complex financial model, rather than using the currently trading market price of that asset.

Deere & Company - DE

Intrinsic Value is $389.84 a discount to fair value of 13%.

According to TD Ameritrade research DE is inexpensive.

Valuation Analysis - Because DE is in the Machinery industry and has positive earnings, the PEG, PE, and Price to Book ratios are the most appropriate valuation measures. The Price to Sales ratio is less instructive than the PEG or PE since the company has positive earnings. Therefore DE seems inexpensive with a PEG value of 1.29x, below the Machinery industry median PEG of 1.68x, which is supported by a PE of 18.71x that is also below the industry median of 26.43x.

The earnings growth for DE in 2022 is expected to be 13.55% and the 3-5 year earnings growth expectations are 15.53%.

Analysts Ratings:

Strong Buy or Buy - 25 analysts
Hold - 11 analysts
Sell - 3 analysts

The Street - Buy
CFRA - Buy
Argus - Buy
Credit-Suisse - Outperform
Reuters - Outperform

Jefferson Research Ratings:

Earnings Quality - Strongest
Cash Flow Quality - Strongest
Balance Sheet - Strongest
Operating Efficiency - Weak (ROIC did increase quarter over quarter though)

------------------------------------

Charles Schwab - SCHW

Intrinsic Value is $91.46 a discount to fair value of 11%.

According to TD Ameritrade research SCHW seems fairly valued.

Valuation Analysis - Because SCHW is in the Capital Markets industry and has positive earnings, the PEG and PE ratios are the most appropriate valuation measures. The Price to Sales ratio is less instructive than the PEG or PE since the company has positive earnings. Therefore SCHW seems fairly valued with a PEG of 1.35x that is inline with the Capital Markets industry median of 1.46x, although their PE is 29.22x, among the highest in the industry.

The earnings growth for SCHW in 2022 is expected to be 25.85% and the 3-5 year earnings growth expectations are 21.70%.

Analysts Ratings:

Strong Buy or Buy - 19 analysts
Hold - 8
Sell - 1

CFRA - Strong Buy
The Street - Buy
Argus - Buy
Reuters - Outperform

No reports available from Credit-Suisse and Jefferson Research.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News