These U.S. Companies Are Extremely Undervalued - Part 1

Summary

• Normally, I focus on only the highest-quality undervalued stocks on the market - in this article, I revisit the concept of the most undervalued stocks on the market.
• All of the stocks mentioned are still qualitative with decent to excellent safeties and, like as not, are companies you know.
• While the market is still slowly recovering, these companies have a long way to go before they can be considered fairly or overvalued.

Usually, in my weekly buys or corona focus articles, I focus strictly on Class 1 or 2 stocks with superb safeties, above-average credit ratings, conservative yields, and growth rates likely to deliver long-term returns.

There is, however, something to be said for the companies in this article too. All of these companies are absolutely excellent at what they do. They provide services or products that people want/need, and there's a resistant quality to their operations that has lasted generations.

However, because of macro and COVID-19, all of these stocks have fallen far further than their peers and comps. It does reflect, in many of these companies, a higher risk for a multitude of reasons (usually very individual, which I will touch on when I mention each company), yet even if the companies mentioned here cut their dividend, the fact remains that their operations will likely outlast us as investors.

This article is about those companies which have fallen far. The ones that, despite that, you know their operations are defensive, and the company's fundamentals may be sound, the market seems to hate, and you may wonder if you've missed something.

(Source: Microsap)

These companies may have frozen or cut the dividend already. Perhaps, they will cut the dividend going forward. However, a cut dividend isn't the end of the world, and in a world where hundreds of companies have frozen or cut their dividend due to macro, we should be somewhat more receptive to the notion when investing.

So, let's look at Class 3-4 stocks - where we usually find the candidates mentioned herein.

This article is one of two in a series. The stocks covered here will be based in The USA. The international version of this comes out a few days after.

In this, I will go by the

Analyst’s Disclosure:I am/we are long ABBV, ABC, CE, FL, LYB, MO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment. I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles.