How to Find Undervalued Stocks: 7 Powerful Methods (2022)
7 strategies for finding deeply discounted stocks
UPDATED: April 11, 2022
Buying undervalued stocks is a powerful strategy that gives you lots of upside (healthy offense) with limited downside (strong defense).
However, finding stocks that are truly undervalued is harder than it seems.
Below, we’ll cover the basics of buying undervalued stocks and go through seven proven ways to find the most undervalued stocks to buy now.
First, let’s start by understanding what undervalued stocks are, and very importantly, what they’re not.
What Are Undervalued Stocks?
Undervalued stocks are companies that are currently trading significantly below what they’re truly worth.
By extension, a value investor tries to buy undervalued stocks and collect profits as their share prices appreciate back to fair value.
For example, a savvy value investor may have picked up shares of Target (TGT) in 2009, when it was deeply undervalued, and held on until 2016. He would’ve earned a fantastic 196% gain over seven years.
