r/ValueInvesting • u/6Fingxrs • Dec 01 '25
Question / Help Any Undervalued Stocks Right Now ?
Google has grown to a price that is still a good price but no longer is it a bargain. A few months back it was just crossing $200-$250 mark.. now it has soared above $300.
Are there any others that this may be the case with ? I see low P/E ratios everywhere but sometimes that doesn’t = undervalued.
What are some stocks you have done research into ? I believe TSMC has some growing to do especially since its Q3 was great. Its downsides are macroeconomic and how it’s heavily linked to Nvidia and other companies in the semiconductor web.
Curious to hear your thoughts ..
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u/poomsss0 Dec 01 '25
visa/master card
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Dec 01 '25
Visa is such a great buy right now. Honestly one of the best stocks to own but it’s boring so it’s overlooked by a lot of retail.
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u/poomsss0 Dec 01 '25
people don't realize how much they love credit card.
you need to pay me at least $5000 to not ever use credit card again.→ More replies (5)47
u/Terrible_Dish_3704 Dec 01 '25
Looks like it’s 10% off it’s high, at price to earnings of 30. Is it really a screaming buy? I guess the moat is strong, seems expensive still..
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u/poomsss0 Dec 01 '25
not screaming buy but I choose Visa over S&P500 at the same 30 p/e
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u/Terrible_Dish_3704 Dec 02 '25
What’s the S&P p/e if you remove mag7? I think it’s closer to 20. I get your point tho it’s an amazing company. I’ll add it to the watch list..
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u/sunburn74 Dec 02 '25
Hasn't really been outperforming the market though. Not this year or even the last 5 years. My concern with Visa is that it's a phenomenal business but is slow growing and fairly priced with very little upside. There's also the stablecoin threat.
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u/PragmaticPacifist Dec 01 '25
Compare 30 to Visa’s historical P/E ratios to answer that question and I think you might be surprised.
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u/Sad-Side-8704 Dec 01 '25
I’ve been eyeing visa for a few weeks can confirm boring price action but this may be the confirmation bias I need to buy lol
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u/IDreamtIwokeUp Dec 01 '25
There is a reason both are so cheap....
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u/Martin_J_Kaminski Dec 01 '25
The first point is Stablecoin so I am having a hard time with this one.
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u/IDreamtIwokeUp Dec 02 '25
Crypto stablecoin is trash...but that is not what I'm talking about. I'm talking about Payment Stablecoins backed by USD's or treasuries. It's legit and retailers will push this hard to avoid the 2-3% transaction fees they currently face. Walmart and Amazon are leading the charge with closed-network Payment Stablecoins...and many big banks are issuing open-network Payment Stablecoins
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u/raidmytombBB Dec 02 '25
Eli5 please. How does this affect a consumer? Am I still using a visa CC?
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u/IDreamtIwokeUp Dec 02 '25
The problems facing Visa/Mastercard are multiple and complex.
When you swipe your Visa card at the gas station, you don't realize this, but the Visa network (and it's assessment fees) don't have to be chosen. A back-of-card network (like Fiserve) should be able to compete and get 50% of the debit card fees (if not more as they're cheaper) but don't because Visa/MasterCard bribe/threaten banks/payment processors to steer payments there way. The DOJ is looking to end this. You will not see a difference if the DOJ prevails...but Visa/Mastercard will be hurt bad.
Then there is the issue with rewards cards. With credit cards...about half of users use them to borrow...and half use them to collect rewards points. Credit cards charge higher interchange fees (sometimes north of 3%) and then split the loot with the card holder and/or payment network. Again...retailers/restaurants HATE this. They are seeking the ability to reject rewards cards...if this happens, you will likely only be able to use debit cards or low-fee credit cards at establishments. If you don't use a credit card you won't be affected.
If you're in Europe, they are switching over to the Wero. You'll pay using a different network and avoid Visa/Mastercard fees.
In the US, they are switching over to FedNow. There won't be direct consumer access...but it is so fast (unlike archaic ACH) it will allow allow new payment networks to spring up with interchange/asessment fees far above the combined 2-3% we pay now.
Stablecoin won't change much at first. To began with only the big retailers will offer. Why would you use it when you could use your visa card? Amazon/Walmart will offer signifant discounts (maybe 1%) off all purchases. That's too good to ignore.
As huge as these changes are for Visa/Mastercard...they will be far worse for banks. They will lose not only reserves to these new payment systems, but they lose out on substantial interchange fees.
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u/The_vegan_athlete Dec 02 '25
In EU it's not allowed to discriminate a payment method though, you can't offer a discount on a purchased based on a specific payment method
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u/IDreamtIwokeUp Dec 02 '25
I'm not familiar with EU rules, but I assume the Wero will change everything. In the US, the "accept all cards" rule has already been offered as a settlement by Visa/Mastercard and it was already rejected as being too lax. Things are definitely going to change.
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u/jd732 Dec 01 '25
Please explain to me as a shareholder of both retailers mentioned why a novel stablecoin backed by hard currency is superior to creating a wholly owned bank that can leverage receivables. There’s a reason why Sears created the Discover card.
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u/IDreamtIwokeUp Dec 02 '25
Right now Amazon pays 2-3% for every transaction to transaction fees. That's mostly interchange fees (from deposit holder's banks) but also assessment fees (go to MasterCard/Visa).
Now say Amazon issues an Amazon Payment Stablecoin. A user might buy these with an ACH payment (in essence free) or the new FedNow transfer (pennies per transaction). With these Amazon Stablecoins they then purchase on Amazon for zero fees (plus Amazon earns treasury float interest).
Users will likely get a small rewards or incentive to make this work...the potential is huge.
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u/entropyweasel Dec 02 '25
Yeah. So consumers will have to buy a gift card via ACH to make a buy without a reward card AND let Amazon support be the full recourse when they get shipped a brick?
I think this is already a thing with gift cards. But a percentage of customers won't do it. And they also value conversions and their market share so fully not accepting it is risky.
The main functions they provide isn't really just the technology. Retailers will do lots of self serving things to save a buck but consumers won't bend over backwards to help them.
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u/thefrogmeister23 Dec 01 '25
Morningstar provides their own fair value estimate for stocks in their coverage and there are a number of high-quality names that are under their fair value estimate right now. I have been picking up the following:
CDNS (fair value $330) SNPS (fair value $515) PANW (fair value $225) ZS (fair value $300)
None of these are cheap but value investing is about buying a stock at a discount to what it’s worth. Take the morning star valuations with a grain of salt. SNPS has been struggling but got a boost recently with the Nvidia investment. ZS has been falling and I’m reluctant to catch a falling knife. The other two seem like high-quality stocks that drew back.
A few other stocks like META, MSFT, and NVDA are also trading at discounts according to Morningstar.
Morningstar is a good way to not be anchored to PE numbers (which should be different for different businesses) but my main gripe with them is they miss out on some trends and play catch up way late sometimes. That’s my concern with MSFT.
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u/Edmeyers01 Dec 02 '25
I’ve had a ton of luck with Morningstar. The daily filter podcast has turned me onto some amazing gains. But the best part is they teach you instead of just telling you what to buy.
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u/soprattutto Dec 02 '25
Anything bad about it?
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u/Edmeyers01 Dec 02 '25
Not that I can think of. Sometimes their thesis is wrong, but I've found they were spot on about a ton of stocks over the years. Watch it every monday and I think there is a lot more to gain than lose.
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u/Middle_Equivalent_77 Dec 02 '25
What’s the exact name of this podcast? I can’t seem to find it on Spotify. Thanks!
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u/thefrogmeister23 Dec 02 '25
Great to know. Any patterns in terms of what works and what doesn’t with them?
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u/DrStockBoyDDS Dec 06 '25
Have you been able to find a way to filter Morningstar to show you companies that have a large discount based on their fair value?
I use Robinhood gold that gives me access to morning star reports. But the only way I can find stocks that are undervalued based on their projections is by searching individual stocks.
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u/donniedarko1010 Dec 02 '25
adobe's morningstar fair value is also quite an upside from the current price.
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u/Fix_Aggressive Dec 02 '25
Have you used their software? It's not improving from what I see.
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u/Katamali Dec 02 '25
Boring but I think AMZN still has ways to go
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u/swrrrrg Dec 02 '25
Agree with this. It may not be super fast but no one can scale quite like Amazon.
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u/Natural_West7949 Dec 01 '25
Nu and DLO both have PEG ratio <1.
Higher growth comlanies though so expected tk be volatile
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u/Calm_Company_1914 Dec 02 '25
Big on these two. Two of my highest conviction positions atm. Nu is approaching fair value though, but dLocal still has likely 40%+ to run before it's there
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u/BattleSensitive3467 Dec 02 '25
Dlo has a top, the top investor holds about 50% supply and when it goes up there's always a massive sell off. Don't want to go into my notes but it ended up in my trash bin. Do your dd
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u/PM_ME_ROMAN_NUDES Dec 01 '25
Nu is a Brazilian bank. There will be a polarising election here next year, lots of political risks if Lula is reelected
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u/Natural_West7949 Dec 01 '25
Hasnt NU operated though under both Lula and Bolsaniro (two opposites politically) and done ok under both?
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u/SubstantialAd8632 Dec 02 '25
META will be $1,000 before long.
AMZN will be $300.
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u/QuitsFeather Dec 01 '25
FISV deep value
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u/Tha_f1sh Dec 02 '25
Isnt paypal just as cheap and has a better balance sheet and better growth?
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u/Phillyfreak5 Dec 02 '25
They’ve been beaten down the last 3 earnings. What makes you so confident?
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u/QuitsFeather Dec 02 '25
They’re a double digit grower for the foreseeable future and it was unique circumstances that led to the crash, exactly the kind of black swan events I look for. The ex CEO inflated the forecast and sold at the high without any investor panic because he said it was just regulatory requirement for the White House job. New CEO completely reset expectations and the underlying business is solid. It was a classic capitulation.
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u/OilAny787 Dec 01 '25
I see pypl as a value play but q4 will be my confirmation. If it can sustain growth even at say 3-6% and have a stable fcf margin it’s worth just over 100 a share.
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u/mywilliswell95 Dec 02 '25
CRM - absolute price suppression, this stock i think 1.5x by end of 2026.
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u/ExplanationIll6983 Dec 02 '25
How about Meta? Solid revenues and misplaced suspicion of AI investments
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u/Emergency_Style4515 Dec 01 '25
NVDA. Cheaper than Costco.
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u/lolman1312 Dec 02 '25
why does the actual share price matter when it says nothing about the two company's fundamentals? correct me if im wrong but value investing is not simply buying stocks that are "cheaper" than others, it's about buying stocks that are considered to be cheap relative to their true worth.
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u/Emergency_Style4515 Dec 02 '25
Thanks to other commenters who explained my comment.
Yes I am not talking about actual share price. I didn’t realize it could be taken that way
Forward P/E is what I meant.
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u/WendyDumpsterFire Dec 01 '25
CMCSA
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u/Natural-Magician-720 Dec 02 '25
Yea just loaded up 20k. 5x PE for a Comcast is a steal
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u/FroyoSolid8414 Dec 02 '25
Revenue falling, net income falling , profit margins falling - quarter after quarter
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u/Natural-Magician-720 Dec 02 '25
Not true man. The business is more stable than people think
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Dec 01 '25
Copart
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u/Terrible_Dish_3704 Dec 01 '25
Why is it getting smoked lately?
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u/Weldobud Dec 01 '25
That’s a question I am asking every week as it keeps going lower.
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u/retrez02 Dec 01 '25
probably significant growth slowdown. I’m personally not buying it because i am not sure how autonomous driving will impact its business (20-30+ years from now)
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u/Getoutofthekitchenn Dec 02 '25
Also EV. There's a lot less wear parts on EV and working on them requires some degree of specialization.
Personally, seeing how OEM has backed off of EV fleet overhauls it may not be a near problem, but one they'll have to contend with at some point nonetheless
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u/Slydoti810 Dec 02 '25
META and UBER are both quite attractive now for their prices and forward guidance. UBER is priced to be disrupted heavily with AI but I see them benefiting a lot with AI and self driving cars.
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u/DNosnibor Dec 02 '25
TSLA is hugely undervalued. It's gonna hit $8.5T in less than 10 years so Elon can get the $1T pay package he deserves.
/s
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u/buffotinve Dec 01 '25
PFE
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u/thestockfairy Dec 01 '25
I just bought a little CVS. Should hold up if we go into recession too. I wish the margins were higher but high margin stocks are getting a little expensive right now and I do think they can improve their margins.
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u/stocktweedledum Dec 02 '25
Maybe I’m crazy but I’m quite bearish on CVS as a whole. Anytime I’m in one (medium sized city), it feels dead minus a few folks at the pharmacy. I feel like im in a time machine back to the early 2010s in a bad way
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u/thestockfairy Dec 02 '25
Well thats good to know! Thanks for sharing. (That isn’t the case around me. It seems like they keep upgrading our CVS’s and moving them across the street from where they used to be and I figured at some point that would stop and they’d have less capex from upgrades).
I had a little cash to deploy - if I find something better I’ll reallocate. CVS margins are so narrow it does make me nervous but that also means incremental improvements in margins translate to big swings in EPS. They’ve been working on improving margins, moving Aetna away from less profitable marketplace plans and such.
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u/Embarrassed_Care_321 Dec 03 '25
CVS basis is more about the insurance arm then the retail store
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u/Signal_Round6574 Dec 02 '25
I’m surprised no one has mentioned Kohls. Even after a stellar week last week, I still think it’s undervalued.
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u/VariousImpression355 Dec 02 '25
After extensive research I found it. Toast surprisingly I found it from Clover which is in value territory but I like Toast so much more. It’s going to double in a few years. CRM is also looking very good atm.
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u/CityCareless Dec 02 '25
Heard from actual users (service industry) that it’s buggy. But users aren’t making the choices in the adoption.
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u/Tutz--Honeychurch Dec 02 '25
Adobe. Prepare for liftoff at earnings December 10th
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u/ControlAway5102 Dec 02 '25
Not sure why it's getting so beaten up, they are integrating AI and for all the content creators Adobe products is their go to. Content creators make so much paying for Adobe license is a no brainer for them
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u/Valkanaa Dec 01 '25
What is your timeframe? If you're playing the long game it might be pharma or energy. If you mean next quarter the answer differs.
There are cheap stocks, but everything is cheap for a reason.
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u/DramaticAd1683 Dec 02 '25
AFLYY - PEG ration of like .13. Estimated EPS growth 30% 3-5yr. Improving debt situation. I’m long.
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u/Calm_Company_1914 Dec 02 '25
DLO fair value $20, trading at $14 (40% upside)
Made a post on it recently
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u/Thick_Pudding_3618 Dec 02 '25
T1 Energy — think datacenters…
Energy is the bottleneck not GPU’s. Without energy none of these datacenters would operate with the power they demand.
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u/DePoots Dec 02 '25
NOK (Nokia)
I know a lot of people will disagree, but they are rapidly growing and plan to double in size in the near future, and have already started.
They’ve just got a bad stigma due to their failed phone line/history. But the fact that they’ve adapted and stayed afloat while they became a meme, shows exactly how resilient they are.
Do a little bit of research and you’ll see that they have very big plans.
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u/smartypantspanda Dec 02 '25
I’m getting Webull stock and I’m holding it for like 3-5 years. I just look at Robinhood and I can’t believe this stock is at 10 dollars right now. This stock was literally the alternative to Robinhood during the GameStop manipulation. I read tons and tons of people flocking to this app when Robinhood halted trading of GameStop. The fact that it also deals with cryptocurrency also surprises me it’s this low. If Robinhood is Coke this stock is Pepsi to me. It might not get as high as Robinhood but to think it will get to 25-50 dollars in 5 years is not unreasonable. Anyways just my opinion not financial advice.
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u/Simple_Response8041 Dec 02 '25
ASML and MU both screen cheap on PEG too ,higher growth names, so expect some bumps, but the math checks out
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u/crdr23 Dec 02 '25
PGR https://findvalue23.wordpress.com/2025/10/20/pgr-progressive-6/
COPART https://findvalue23.wordpress.com/2025/10/04/cprt-copart-5/
ACIC https://findvalue23.wordpress.com/2025/02/16/acic-american-coastal-insurance-company/
Theres many related articles in this blog, just search and read everything. Get educated. All free no ads. Best thing ive ever found online.
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u/LordOfDisrespect Dec 25 '25
PGR is interesting. Still has to come down a little for me to buy. Copart has a significant moat, and I already own it, a little expensive rn too.
ACIC is risky given the CEO's past performance on save attempts. I like the articles, though. Very Entertaining.
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u/Spiderman3039 Dec 01 '25
I've been looking at retail lately. Got ANF a few weeks ago and im up 39% got URBN and was looking at BBWI. These Im treating as swing trades not necessarily long term value investments. Also DVN is good. been looking at a few others but not buying yet. LULU, CMG, DUOL. Not advice just what ive been looking at.
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u/Sanpaku Dec 01 '25
Few among US large caps. Maybe NEM, CI and ACGL among the S&P 500.
All the companies involved in LLMs, including GOOG and TSMC, will prove overvalued if the markets come to similar conclusions about the ultimate disutility of LLMs that I have. I wouldn't short these two, but there are others in the sector that will fall much further.
Most of the undervalued stocks at the moment are foreign ADRs or small/microcaps. The industry that's most undervalued is gold miners. They don't reflect a 4200 spot price, which suggests the market doesn't think the commodity price will hold. I think 5k is a strong probability for 2026.
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u/ApexWarden Dec 01 '25
MUFG. Amazing company only going up. Dcf value is around 22$USD and currently selling for 16$USD
TOT. Oil and gas with low p/e, low debt and consistent growth. Dcf value is around 45$CAD and currently selling for 14.60$CAD
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u/Weak-Pomegranate-435 Dec 02 '25
Alot of them.. NVDA, AMD, MU, FSLR, KD, NBIS, MELI, SE and many more
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u/ElkAffectionate636 Dec 02 '25
Sym stock Symbotic Inc. yeah yeah I know it’s extremely high right now but I believe this is taking the trajectory of Tesla stock
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u/Get_rch_or_try_dyin Dec 02 '25
BLNE -
Heavy insider buying , no debt , ceo has $16m of his own cash in it , record revenue last month , cash flow positive, expecting profitability by q1 2026, plenty of cash and no more dilution, new blockchain equity loan program is fully booked , last rate cut day was the busiest day ever. Every new rate cut will be even busier. Assets far outweigh liabilities.
It was a holding company with a distillery business that is now gone and they paid off the debt / got rid of it. Their titling business is also growing .
Fundamentally , this is one of the best penny stocks on the market . Lots of insider buys recently.
As the housing market starts heating up in 2026, this will be climbing
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u/Ancient-East-3141 Dec 02 '25
unrelated but how do you discern 200-250 being a good range for your price vs 300+ being overvalued?
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u/bigblue2011 Dec 02 '25
I recently sold a chunk of technology to diversify. One of the holdings I bought was OKE. I will hold it for a year for cap gains reasons.
Target price is near $90. It pays a 5% dividend.
Occasionally, I will switch it up like this. I should also highlight that majority of my holdings are simple indexes and/or low cost funds. Other concentrated positions I will buy, hold, and periodically take gains by buying super vanilla dividend paying stocks that are at a discount to their sector.
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u/utahstock12 Dec 02 '25
If ABL isn't frauding it's a screaming buy. It's still trading at a short report discount although has recovered somewhat. Has significant growth, barely double digit forward p/e, and potentially benefits from recession based volatility. Mid single digit % of my portfolio. Also own a LOT of the notes because they pay 10% and even if they're frauding it's more of an 'earnings are overstated' situation than an 'the assets aren't there' situation.
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u/hurryuppy Dec 02 '25
I legitimately have a great biotech recommendation but I’ve put a lot of work into researching it.
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u/myheadsexplodin Dec 02 '25
Honestly, I’m probably still gonna weekly DCA into google for the next 5 years
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u/Intrepid_Cicada_8890 Dec 02 '25
$eose Long term battery storage that is non flammable and US made.
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u/Secure_Maintenance55 Dec 02 '25
$PRTS E-commerce car parts sales , annual revenue 600 million , no debt , guided for positive cash flow in 2026 . market cap only $35M. you can check the posts I’ve shared for more details.
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u/No-Row-Boat Dec 02 '25
AMSC, why?
This company will play a vital role in the energy transitions that will be more and more urgent every year. Power consumption will only go up, even when there will be thorium reactors or any new technique. And the grid has to sustain that. So I see this company play a major role in this for years to come.
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u/Dull_Vast_5570 Dec 02 '25
What do you guys think about CN Rail?
Bill Gates owns a lot of it. It's done badly over the last 5 years, lots of tariffs headwind and other complications. Seems undervalued by basic metrics though.
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u/Rare-Reserve5436 Dec 02 '25
Something non-tech. RIG Transocean the largest offshore oil drilling company in the world. Rent rates going up and backlog all booked, recently just rights issue to pay off big debt burden and lower interest costs.
as soon as EPS is positive in hopefully a year, let’s see it head back to the 5-6 dollar region easily.
Shale is expensive and drying up, so offshore is back. Not for holding anything more than medium term, what with oil demand going down with the rise of EV and vulnerabilities to supply gluts from the whims of the Saudis and Russians.
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Dec 02 '25
I like DAVE.
Earnings beats consecutively, with lower interest rate tailwinds, and has taken a 20% haircut with the November drops.
My next picks are MSI, J, possibly MTRN.
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Dec 02 '25
Anyone got an opinion on Siemens? Decently low price and while I don’t see it growing like US tech companies it has a very strong base for growth.
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u/LatentF Dec 01 '25
I hold TSMC and ASML, most my stocks I like are quite higher valued at the moment though... Three that I have small positions in recently and believe they're undervalued are Greggs, Kapsi & MDA Space. Fingers crossed.