Undervalued Near High

Undervalued Near High

What are Undervalued Near High Stocks?

Undervalued Near High Stocks are stocks that are trading near their highest price in the past year but appear undervalued based on financial ratios like P/E or P/B ratios. This means that while the stock price is high, its underlying financials suggest it may be worth more based on its current fundamentals.

What do Undervalued Near High Stocks Tell Us?

Undervalued Near High Stocks tell us that these stocks are trading close to their highest price within the past year but are still considered undervalued based on financial ratios like price-to-earnings (P/E). This means that the stock's market price may not fully reflect its intrinsic financial value, providing insights into how the stock is priced compared to its recent performance.

Filters Used to Sort the Above Stocks

1. PE / Sector PE <= 0.75

This filter is applied to identify stocks that are trading at a price-to-earnings (PE) ratio lower than 75% of their sector’s average PE. It helps users spot undervalued stocks that might have strong earnings potential compared to others in the same sector. It essentially highlights stocks that may be cheaper based on their earnings.

2. 1Y EPS Growth >= 25.00

An earnings per share (EPS) growth rate of 25%+ over the past year signals that the company is experiencing consistent profit growth. This metric allows investors to assess how effectively a company is increasing its earnings. A high EPS growth rate can suggest that the company is on a positive trajectory, making it worthy of further investigation.

3. Market Cap >= 100

A market capitalization of at least ₹100 crore ensures that the stock represents a company with a substantial size and operational presence. Larger companies tend to have more resources, established business models, and greater market stability. Filtering for this metric helps to focus on stocks that may have the operational strength to withstand market fluctuations.

Key Takeaways

1. Market Position

Undervalued near high stocks may indicate potential growth opportunities, as these companies are currently trading lower than their perceived value despite nearing recent price peaks.

2. Investment Strategy

Investors often analyze these stocks for short-term gains, leveraging their current undervaluation while being mindful of market volatility and external factors that may impact stock performance.

3. Risk Assessment

Investing in undervalued near high stocks carries inherent risks, as price fluctuations can be influenced by market sentiment, economic conditions, and company-specific developments that may alter perceived value.

4. Earnings Potential

These stocks may have solid fundamentals and earnings potential, suggesting they could perform well in the future. Analyzing earnings reports can provide insight into their long-term growth trajectory.

5. Diversification Strategy

Including undervalued near high stocks in a diversified portfolio can balance risk and return. This approach allows investors to potentially benefit from varying market conditions without promoting specific stocks.

Undervalued & Near High stocks trade close to their 52-week high but are considered undervalued based on key financial metrics like the price-to-earnings (P/E) ratio. This indicates that, despite the stock's recent high price, it may still be priced below its intrinsic value, suggesting potential room for growth.

PE/Sector PE

0.75

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1Y EPS Growth

25.00

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Market Cap

100 (Cr)

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