Investing in the stock business is a difficult job. It is primarily due to uncertainty. Investors are classified into several types, based on their investment portfolio. The investors who take low-risk prefer investing in high-dividend paying stocks. Meanwhile, the investors who are high-risk takes mostly prefer to invest in stocks whose price may rise once the market witnesses a bullish trend. The term ‘falling knife stocks’ is used for such stocks. These are stocks which witness a rapid decline in price within short span of time. Another term ‘catching a falling knife’ is used for such stock investors who prefer investing in stocks whose price is the lowest and at some point, in the future the price will go up. When the stock price of any company falls to the lowest level, such stocks become undervalued. There are investors who prefer buying undervalued stocks because the time it is bought, is the best to retain it for the instance when it is rebound and become a lucrative in terms of capital. According to a survey by Brandes Institute, the undervalued stocks outperformed at 7.1%. This growth is based on the condition that the stocks were held for a period of 3 years. This article is all about undervalued stocks. Keep reading till the end, as we have identified Top 10 Undervalued Stocks To Buy in this article.
Bluebird Bio, Inc. is one of the undervalued stocks which according to analysts is a good option for long-term investment. This company is engaged in development of gene therapies for cancer and other genetic diseases. A year ago, the stock price of Bluebird was $98. Since then, the price of the company stock went down to $50.21. During third quarter of 2020, the company reported a revenue of $19.27 million. Another undervalued stock is Acuity Brands, Inc. The price of this stock fell by 12.7% in February and according to CEO Vernon Nagel, “was greater than previously forecasted due to weaker than expected market demand, which we estimate declined in the low-to-mid single digit range, with the decline in large projects even greater.” Nagel would go on to say that he was “cautious about overall market conditions within the lighting industry for the remainder of our fiscal 2020.” To read more about undervalued stocks, go to 15 Best Undervalued Stocks to Buy Now.