5 Undervalued Stocks That Are Worth Buying in September

Core Insights - Identifying value stocks requires awareness of key financial metrics such as earnings per share and sales growth, along with a thorough analysis of fundamentals to determine if a stock is undervalued [1] Price-to-Book Ratio (P/B Ratio) - The P/B ratio is a useful metric for identifying low-priced stocks with high growth potential, calculated as market price per share divided by book value of equity per share [2][6] - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued, while a ratio above one suggests overvaluation [6][7] - Stocks with low P/B ratios include StoneCo, USANA Health Sciences, KT Corporation, PagSeguro Digital, and Itron, all showing strong projected EPS growth [3][10] Book Value - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities, calculated by subtracting total liabilities from total assets [4][5] Screening Parameters for Value Stocks - Stocks are screened based on several parameters, including P/B ratio less than the industry median, P/S ratio less than the industry median, and P/E ratio using forward estimates less than the industry median [12][13] - A PEG ratio of less than 1 indicates undervaluation relative to future growth prospects, while a minimum stock price of $5 and an average trading volume of at least 100,000 are also considered [14][15] Highlighted Stocks - StoneCo: Provides financial technology solutions with a projected EPS growth rate of 25.3% and a Zacks Rank of 2 [16] - USANA Health Sciences: Develops nutritional products with a projected EPS growth rate of 12.0% and a Zacks Rank of 2 [17] - KT Corporation: Offers telecommunication services with a projected EPS growth rate of 51.7% and a Zacks Rank of 1 [17] - PagSeguro Digital: Provides digital payment solutions with a projected EPS growth rate of 11.4% and a Zacks Rank of 2 [18] - Itron: Supplies technology and services for utility sectors with a projected EPS growth rate of 30.0% and a Zacks Rank of 2 [20]