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What is the best undervalued stock to invest in at the moment?


Undervalued in terms of Warren Buffet ... stable, easy to understand business

Sometimes stocks are undervalued for a reason and the reason is not readily apparent to someone not in the know. Other times stocks become undervalued because the market in general is undervalued. In todays market some stocks in the later category might be found. But there is the possibility that the world is heading into a recession and these stocks may become much more undervalued next year.

The PEG ratio is often used to try to uncover undervalued stocks. That is the ratio of PE to growth rate. In theory the lower the ratio the more undervalued the stock. Warren Buffet likes companies that have potential that has not been realized. That implies poor management. He is in a position to take over the company and change the management. You perhaps are not.

I ran a screen on Yahoo of companies paying 3% to 5% dividend with a PEG between .5 and 1.0 and a market capitalization of greater than a billion dollars. 21 companies were selected. Quite a few of them large banks. Perhaps what you are looking for is among those selected.

Yahoo! Answer.

seriously, Yahoo! stock is undervalued now.

beans just kidden the sprit

real estate. Gold is doing good, but will keep going up.

most easy method -look at PE. Some good stocks which their PE is vy high, may have decline lately, so check their PE. But u need to check their fundamental - profitability, ROE, cos some low PE stocks dun have much prospects.

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