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7 Undervalued Stocks for 2022 - Dailyforextrading

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7 Undervalued Stocks for 2022 - Dailyforextrading

Value investors may be looking at a good year in 2022. With the Federal Reserve implementing a series of rate hikes meant to tame rising inflation, the stock market is anticipating a choppy year, at best.

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That means investor caution and a shift away from fast-rising growth stocks that have dazzled market watchers since the crash of 2020.

7 Undervalued Stocks To Consider Right Now

It’s smart to look behind the numbers and get well informed on the current state of any business you invest in. While the following companies passed a screen for high value, consider the list an introduction to some inexpensive stocks and not a recommendation to buy shares.

1. ACCO Brands Corp. (ACCO)

  • Market Capitalization: $649.92 million
  • EPS Growth Y/Y: 42.18%
  • Trailing P/E: 5.48
  • Price/Sales: 0.32
  • Price/Book: 0.73

There’s nothing quite as dull as office supplies, but boring-yet-profitable can mean real excitement when you own shares. Headquartered in Illinois, ACCO makes a wide variety of school and office products under several different brand names, including Swingline, Wilson Jones, Five Star, and Kensington.

Buyers find ACCO’s products through retail stores, online stores, warehouse clubs, and office supply outlets such as Staples and Office Depot.

The company also has an e-commerce platform and a direct sales group. The shares trade at a P/E of 5.48 and pay a dividend of 4.46%, while revenue has grown 12.39% year over year.

2. Foot Locker Inc. (FL)

  • Market Cap: $2.94 billion
  • EPS Growth Y/Y: 34.28%
  • Trailing P/E: 3.74
  • Price/Sales: 0.32
  • Price/Book: 0.90

Foot Locker sits at the forefront of youth and sneaker culture — yes, there is such a thing — with over half a dozen brands and nearly 3,000 retail stores in 28 countries.

The New York-based specialty retailer is revamping its operations by diversifying its product offerings and focusing more on direct-to-consumer sales channels to better serve customers.

Shares fell on news of Foot Locker’s transition, giving investors a chance to buy at a discount as the company regains its footing.

3. China Petroleum & Chemical Corp. (SNP)

  • Market Cap: $72.31 billion
  • EPS Growth Y/Y: 6.4%
  • Trailing P/E: 5.01
  • Price/Sales: 0.17
  • Price/Book: 0.48

China Petroleum & Chemical Corp. is a chemicals and energy resources producer in the People’s Republic. It owns and operates service stations, pipelines, refineries, chemical plants, storage facilities, drilling sites, and coal facilities.

4. Honda Motor Co. (HMC)

  • Market Cap: $48.941 billion
  • EPS Growth Y/Y: 7.97%
  • P/E: 8.66
  • Price/Sales: 0.45
  • Price/Book: 0.58

Honda, like other automakers, has had a tough ride over the last couple of years due to pandemic-related chip shortages and increasing material and labor costs.

Although serious challenges remain, including a disappointing first quarter of Honda’s 2023 fiscal year, things might be starting to turn around for Honda.

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In its most recent earnings release, Honda increased its operating profit projection and announced it would buy back shares amounting to as much as 100 billion yen.

In the meantime, shares are trading at just 8.66 times earnings, contributing to Honda’s “strong buy” rating from analysts.

5. Beazer Homes USA Inc. (BZH)

  • Market Cap: $495.18 million
  • EPS Growth Y/Y: 83.89%
  • P/E: 2.66
  • Price/Sales: 0.24
  • Price/Book: 0.56

Headquartered in Atlanta, Beazer Homes USA builds throughout the South and in the western states of California, Arizona, and Nevada.

The company raises single-family and multifamily residential properties and has benefited from positive trends in the real estate sector.

Amid rising interest rates, however, the stock market sees a cloudy future for Beazer and other builders if the housing market cools off. Beazer’s low price-to-sales of 0.24 and P/E of 2.66 reveal a lack of enthusiasm from the market.

Value investors in search of a bargain, however, may want to have a look while considering the demand for housing of all kinds in the fast-growing regions the company serves. Zacks Equity Research says the stock is still trading at a discount, and the consensus rating among analysts polled by Yahoo Finance is “strong buy.”

6. Ternium S.A. (TX)

  • Market Cap: $6.9 billion
  • EPS Growth Y/Y: 59.21%
  • P/E: 1.80
  • Price/Sales: 0.39
  • Price/Book: 0.58

Ternium is a Luxembourg-based conglomerate with steel factories and mining subsidiaries in the United States and throughout Latin America. It sells and distributes steel beams, tubes, bars, and rods, as well as roofing and decks, pre-engineered building components, pig iron and iron ore.

Steel and metal fabrication is a hard-fought and cyclical business, resulting in a relatively low valuation for Ternium and its competitors.

The company’s trailing P/E hovers below 2, and analysts polled by Yahoo Finance, which calls the stock undervalued, rate it a “buy.” Value investors seeking to diversify their holdings outside of the United States may also find a steady Europe-based business of interest.|

7. M/I Homes Inc. (MHO)

  • Market Cap: $1.31 billion
  • EPS Growth Y/Y: 26.42%
  • P/E: 3.14
  • Price/Sales: 0.34
  • Price/Book: 0.72

M/I Homes is a single-family homebuilder with a presence in 16 markets in Texas and several states in the Midwestern and Eastern U.S. Despite the high demand for homes, the residential construction industry has faced serious challenges since the pandemic began.

However, M/I is holding its own, with a low P/E, an upward trend in its stock price, and new quarter records for revenue and net income.


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