My Top5 Undervalued Stock Pick for Q4 2024
In my view, undervalued stocks are often overlooked by the investors but filled with potential for those who can see beyond the surface. Recognizing this hidden value is key to long-term capital appreciatio. Here are 5 stocks on my watchlist, which you might find useful (though it’s not financial advice, just something to consider.)
1. $FEMSA (FMX.US)$ is making significant strides with its U.S. expansion, particularly through acquisitions in the convenience store sector, while also divesting non-core assets like refrigeration. These moves are aimed at improving its profitability and balance sheet. However, the company’s OXXO retail performance has been uneven recently, which, combined with increased debt from expansion, creates short-term risk. Nevertheless, FEMSA is fairly value / slightly undervalued, offering a potential opportunity for long-term growth.
2. $Vipshop (VIPS.US)$ continues to be a dominant player in China’s discount retail sector, especially through its focus on flash sales and luxury discount goods. While it faces fierce competition from larger e-commerce players, its operational efficiency and low P/E ratio make it an attractive option for value investors. The regulatory environment in China remains a risk, but the stock’s current valuation indicate rooms for upside potential .
3. $Elevance Health (ELV.US)$ benefits from strong growth in its Medicaid and Medicare business, bolstered by strategic acquisitions and effective cost management. However, regulatory uncertainties and rising healthcare costs could pressure future profitability. The company’s ability to consistently grow membership and generate strong free cash flow underpins its solid long-term investment thesis.
4. $ASML Holding (ASML.US)$ is the leading supplier of EUV lithography systems crucial to semiconductor manufacturing, positioning it at the heart of the global chip supply chain. Its monopoly in this advanced technology ensures a long-term revenue stream, but supply chain challenges and geopolitical risks, especially around U.S.-China relations, could pose headwinds. Despite trading at a premium, its monopoly role in the industry justifies investor interest in long term and for value investing.
5. $Molina Healthcare (MOH.US)$ is capitalizing on the growing demand for government-sponsored healthcare programs, particularly Medicaid and Medicare, through efficient cost management and market expansion. While it faces competition and potential policy risks, its focus on expanding membership and managing costs gives it strong growth prospects, with the stock appearing undervalued compared to industry peers.
3. $Elevance Health (ELV.US)$ benefits from strong growth in its Medicaid and Medicare business, bolstered by strategic acquisitions and effective cost management. However, regulatory uncertainties and rising healthcare costs could pressure future profitability. The company’s ability to consistently grow membership and generate strong free cash flow underpins its solid long-term investment thesis.
4. $ASML Holding (ASML.US)$ is the leading supplier of EUV lithography systems crucial to semiconductor manufacturing, positioning it at the heart of the global chip supply chain. Its monopoly in this advanced technology ensures a long-term revenue stream, but supply chain challenges and geopolitical risks, especially around U.S.-China relations, could pose headwinds. Despite trading at a premium, its monopoly role in the industry justifies investor interest in long term and for value investing.
5. $Molina Healthcare (MOH.US)$ is capitalizing on the growing demand for government-sponsored healthcare programs, particularly Medicaid and Medicare, through efficient cost management and market expansion. While it faces competition and potential policy risks, its focus on expanding membership and managing costs gives it strong growth prospects, with the stock appearing undervalued compared to industry peers.
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Stock_Drift : You said it!! Overlooked by investors so day traders can pounce on them….
约翰の理财库 OP Stock_Drift :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Diordorus (薛达人） : nice! what do you think about LVMH ?
约翰の理财库 OP Diordorus (薛达人） : LVMH’s stock has dropped a lot due to weaker demand in China and uncertainty in the global luxury market. While some analysts view this as a potential undervaluation, luxury demand can be harder to measure than other sectors. Personally, I’d like to wait for insights from Terry Smith, who has LVMH as one of the biggest holdings in his portfolio, before commenting, as his opinion on the long-term outlook could provide more valuable guidance.
Diordorus (薛达人） 约翰の理财库 OP : yes agree with u that it's harder to value even tho i love luxuries like LV and Dior and always keep speculating but humans are complicated
约翰の理财库 OP Diordorus (薛达人） : If a company is built on BRANDING rather than hard demand technology or a strong ecosystem, it can be much harder to recover from demand and reputation damage, as seen with companies like $Nike (NKE.US)$ . Rebuilding consumer trust and brand perception can take longer when the core strength is intangible, compared to companies with more tangible products or services tied to essential technologies or ecosystems.