Best Cheap Stocks To Buy
Companies with shares trading at a market price below what they are actually worth, such as China YCT International Group and Talon International, are deemed undervalued. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
China YCT International Group, Inc (OTCPK:CYIG)
China YCT International Group, Inc., through its subsidiaries, engages in the research, development, manufacture, and sale of Chinese medicines primarily made from ginseng extract in the People’s Republic of China. China YCT International Group was founded in 1989 and with the stock’s market cap sitting at USD $11.92M, it comes under the small-cap stocks category.
CYIG’s stock is now trading at -94% under its true level of $6.8, at the market price of $0.4, based on its expected future cash flows. The discrepancy signals an opportunity to buy low. In addition to this, CYIG’s PE ratio stands at around 0.9x while its personal products peer level trades at 23.2x, suggesting that relative to its peers, you can buy CYIG’s shares at a cheaper price. CYIG is also in good financial health, as current assets can cover liabilities in the near term and over the long run. CYIG also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility.
Talon International, Inc. (OTCPK:TALN)
Talon International, Inc. manufactures and distributes apparel components and accessories to manufacturers of fashion apparel, specialty retailers, and mass merchandisers. Founded in 1980, and headed by CEO Larry Dyne, the company currently employs 201 people and with the stock’s market cap sitting at USD $9.23M, it comes under the small-cap category.
TALN’s stock is currently trading at -57% less than its intrinsic value of $0.23, at a price tag of $0.1, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. In addition to this, TALN’s PE ratio stands at around 18.5x while its luxury peer level trades at 21.8x, implying that relative to its comparable set of companies, TALN’s stock can be bought at a cheaper price. TALN is also a financially robust company, with near-term assets able to cover upcoming and long-term liabilities. Finally, its debt relative to equity is 51%, which has over time, showing TALN’s capacity
HH Biotechnology Holdings Company (OTCPK:HHBT)
HH Biotechnology Holdings Company engages in health and green industries. Formed in 1987, and currently run by Sheng Jiang, the company provides employment to 121 people and with the company’s market cap sitting at USD $14.64M, it falls under the small-cap stocks category.
HHBT’s stock is now hovering at around -81% lower than its intrinsic level of $5.62, at a price of $1.04, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. What’s even more appeal is that HHBT’s PE ratio is around 5.1x compared to its real estate peer level of 10.1x, meaning that relative to its comparable company group, HHBT can be bought at a cheaper price right now. HHBT is also a financially healthy company, with short-term assets covering liabilities in the near future as well as in the long run. HHBT has zero debt on its books as well, meaning it has no long term debt obligations to worry about.
For more financially sound, undervalued companies to add to your portfolio, you can use our free platform to explore our interactive list of undervalued stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
