Cigna and Chico’s FAS are two of the companies on my list that I consider are undervalued. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.
Cigna Corporation (NYSE:CI)
Cigna Corporation, a health services organization, provides insurance and related products and services in the United States and internationally. Founded in 1792, and now run by David Cordani, the company provides employment to 46,000 people and with the market cap of USD $41.98B, it falls under the large-cap category.
CI’s stock is currently floating at around -41% under its intrinsic level of $295.32, at a price of US$173.32, according to my discounted cash flow model. The mismatch signals a potential chance to invest in CI at a discounted price. Furthermore, CI’s PE ratio is trading at around 16.8x while its Healthcare peer level trades at, 21.58x suggesting that relative to its competitors, we can purchase CI’s shares for cheaper. CI is also robust in terms of financial health, as current assets can cover liabilities in the near term and over the long run. Finally, its debt relative to equity is 37.22%, which has been falling over the past couple of years signifying its ability to reduce its debt obligations year on year. More detail on Cigna here.
Chico’s FAS, Inc. (NYSE:CHS)
Chico’s FAS, Inc. operates as an omni-channel specialty retailer of women’s private branded, casual-to-dressy clothing, intimates, and complementary accessories. Started in 1983, and now run by Shelley Broader, the company now has 12,350 employees and with the market cap of USD $1.29B, it falls under the small-cap group.
CHS’s stock is currently trading at -52% beneath its actual worth of $17.05, at the market price of US$8.17, according to my discounted cash flow model. The divergence signals an opportunity to buy CHS shares at a low price. Moreover, CHS’s PE ratio is trading at around 10.38x against its its Specialty Retail peer level of, 19.64x suggesting that relative to other stocks in the industry, we can buy CHS’s stock at a cheaper price today. CHS is also in good financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.
More detail on Chico’s FAS here.
Lincoln National Corporation (NYSE:LNC)
Lincoln National Corporation, through its subsidiaries, operates multiple insurance and retirement businesses in the United States. Formed in 1904, and now run by Dennis Glass, the company provides employment to 9,047 people and with the stock’s market cap sitting at USD $14.32B, it comes under the large-cap group.
LNC’s shares are now trading at -44% under its actual value of $119.43, at the market price of US$67.10, based on its expected future cash flows. This mismatch signals an opportunity to buy LNC shares at a discount. Moreover, LNC’s PE ratio is currently around 7.35x against its its Insurance peer level of, 13.94x implying that relative to its comparable set of companies, you can buy LNC’s shares at a cheaper price. LNC is also a financially healthy company, with short-term assets covering liabilities in the near future as well as in the long run.
Dig deeper into Lincoln National 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.