There are a number of great companies in the market today. By using the ModernGraham Valuation Model, I’ve selected five undervalued companies with a low beta reviewed by ModernGraham. A company’s beta indicates the correlation at which its price moves in relation to the market.  A beta less than 1 indicates a company is less volatile than the […]
I evaluated 28 different companies this week to determine whether they are suitable for Defensive Investors, those unwilling to do substantial research, or Enterprising Investors, those who are willing to do such research. I also put each company through the ModernGraham valuation model based on Benjamin Graham’s value investing formulas in order to determine an intrinsic value for each. Out of those 28 companies, only 5 were found to be undervalued or fairly valued and suitable for either Defensive or Enterprising Investors. Therefore, these companies are the best undervalued stocks of the week.
Carter’s, Inc. is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings stability over the last ten years, the poor dividend history, and the high PEmg and PB ratios.
