Yahoo Finance Valero Energy And Other Great Cheap Stocks
Stocks, such as Valero Energy and JetBlue Airways, are trading at a value below what they may actually be worth. 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.
Valero Energy Corporation (NYSE:VLO)
Valero Energy Corporation operates as an independent petroleum refining and ethanol producing company. Founded in 1955, and currently lead by Joseph Gorder, the company currently employs 10,015 people and has a market cap of USD $50.86B, putting it in the large-cap group.
VLO’s stock is currently trading at -21% below its true value of $149.56, at a price tag of US$118.02, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. In terms of relative valuation, VLO’s PE ratio stands at 12.23x relative to its Oil and Gas peer level of, 13.78x implying that relative to other stocks in the industry, VLO’s stock can be bought at a cheaper price. VLO is also robust in terms of financial health, with current assets covering liabilities in the near term and over the long run.
Interested in Valero Energy? Find out more here.
JetBlue Airways Corporation (NASDAQ:JBLU)
JetBlue Airways Corporation, a passenger carrier company, provides air transportation services. Formed in 1998, and currently lead by Robin Hayes, the company now has 17,530 employees and with the company’s market capitalisation at USD $5.99B, we can put it in the mid-cap stocks category.
JBLU’s stock is now trading at -22% beneath its intrinsic level of $24.32, at the market price of US$18.94, according to my discounted cash flow model. The mismatch signals a potential chance to invest in JBLU at a discounted price. Moreover, JBLU’s PE ratio stands at around 5.33x while its Airlines peer level trades at, 10.72x meaning that relative to other stocks in the industry, we can invest in JBLU at a lower price. JBLU is also in great financial shape, as short-term assets amply cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 24.34% has been declining for the last couple of years indicating its capability to reduce its debt obligations year on year. Interested in JetBlue Airways? Find out more here.
Westlake Chemical Corporation (NYSE:WLK)
Westlake Chemical Corporation manufactures and markets basic chemicals, vinyls, polymers, and building products primarily in North America and Europe. Formed in 1985, and run by CEO Albert Chao, the company provides employment to 8,800 people and has a market cap of USD $14.84B, putting it in the large-cap group.
WLK’s shares are now trading at -45% under its value of $207.28, at the market price of US$114.51, based on its expected future cash flows. This discrepancy signals a potential opportunity to buy WLK shares at a low price. Additionally, WLK’s PE ratio is trading at 10.24x while its Chemicals peer level trades at, 17.64x suggesting that relative to its competitors, you can buy WLK for a cheaper price. WLK is also strong in terms of its financial health, as current assets can cover liabilities in the near term and over the long run.
Interested in Westlake Chemical? Find out more here.
For more financially sound, undervalued companies to add to your portfolio, explore this 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.
