Top Undervalued Stocks To Invest In 2018

The steel industry is garnering a lot of attention this year due to expectations of increased economic activity and the President’s announcement that new oil and gas pipeline construction will be built with U.S.-manufactured steel, observes Crista Huff, editor of Cabot Undervalued Stocks Advisor.

I’m adding Schnitzer Steel Industries (SCHN) to the Buy Low Opportunities Portfolio. Schnitzer Steel is both a recycler of scrap metals, and a manufacturer of steel products that are used in nonresidential construction.

The company also owns over 50 stores that sell used auto parts. Schnitzer is based in Oregon and exports 60% of its steel products to international destinations. The company is run by a woman who has an investment banking background. Schnitzer is considered to be well managed and benefiting from a recent focus on cost cutting.

Schnitzer’s full-year 2016 earnings per share were $0.48 (August year-end). Wall Street expects $1.21 and $1.48 EPS in fiscal 2017 and 2018, representing earnings growth of 152% and 22.3%. The corresponding P/Es are 19.6 and 16.0. The company’s long-term debt-to-capitalization ratio is 27%, down from 32% three years ago. Schnitzer last announced a quarterly dividend increase in April of 2012. The current yield is 3.1%. The number of basic shares outstanding has been relatively unchanged over the last five years. 91% of those shares are held by financial institutions, which means that professional investors think that SCHN is a good investment.

Top Undervalued Stocks To Invest In 2018: Westar Energy, Inc.(WR)

Advisors’ Opinion:

  • [By Lisa Levin]

    In trading on Thursday, utilities shares fell by 0.34 percent. Meanwhile, top losers in the sector included Westar Energy Inc (NYSE: WR), down 7 percent, and Companhia de Saneamento Basico (ADR) (NYSE: SBS), down 5 percent.

  • [By Lisa Levin]

    On Thursday, utilities shares rose by 0.02 percent. Top gainers in the sector included Westar Energy Inc (NYSE: WR), Westar Energy Inc (NYSE: AT), and NRG Energy Inc (NYSE: NRG).

  • [By Jayson Derrick]

    According to a report by Bloomberg, Westar Energy Inc (NYSE: WR) is a potential takeover target from rival Ameren Corp (NYSE: AEE) and a consortium of investors, including Toronto-based Borealis Infrastructure Management and the Canada Pension Plan Investment Board.

  • [By Dan Caplinger]

    Yet even on a good day, some stocks couldn’t keep up, and Ocwen Financial (NYSE:OCN), Westar Energy (NYSE:WR), and United Rentals (NYSE:URI) were among the worst performers. Below, we’ll look more closely at these stocks to tell you why they did so poorly.

Top Undervalued Stocks To Invest In 2018: Vanguard Extended Duration Treasury ETF (EDV)

Advisors’ Opinion:

  • [By Todd Shriber, ETF Professor]

    The 11 ETF fee cuts unveiled by Vanguard include a significant portion of the issuer's fixed income lineup. All of the following saw annual fees reduced to 0.07 percent from 0.1 percent:

    Vanguard Extended Duration Treasury ETF (NYSE: EDV). Vanguard Intermediate-Term Bond ETF (NYSE: BIV). Vanguard Intmdte Tm Govt Bd ETF (NASDAQ: VGIT). Vanguard Long Term Corporate Bond ETF (NASDAQ: VCLT). Vanguard Lg Term Govt Bd ETF (NASDAQ: VGLT). Vanguard Mortgage Bkd Sects ETF (NASDAQ: VMBS).

    and the Vanguard Short Term Corporate Bond ETF (NASDAQ: VCSH).

Top Undervalued Stocks To Invest In 2018: Deer Valley Corporation (DVLY)

Advisors’ Opinion:

  • [By SEEKINGALPHA.COM]

    Deer Valley (OTCPK:DVLY)

    This company manufactures factory-made homes which are marketed to 14 states in the US. After the financial crisis it has been able to pick up its operations and continue to create sustainable free cash flow and increasing profits. It might be that another similar shock to housing is not necessarily around the corner and therefore they could sustain this in the foreseeable future.

Top Undervalued Stocks To Invest In 2018: VALE S.A.(VALE)

Advisors’ Opinion:

  • [By Ben Levisohn]

    Mosaic (MOS) tumbled to the bottom of the S&P 500 today after announcing that it would buy Vale’s (VALE) fertilizer unit.

    Getty Images

    Mosaicdropped 1.1% to $27.77 today, while the S&P 500 advanced 0.2% to 2,262.53.

  • [By Craig Jones]

    On CNBC's Fast Money Halftime Report, Jon Najarian spoke about unusually high put options activity in Arconic Inc (NYSE: ARNC) and Vale SA (ADR) (NYSE: VALE).

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