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Way Undervalued
  Finding undervalued stocks

These 3 Healthcare stocks are Way Undervalued

There are 3 large cap healthcare stocks that recently became Way Undervalued ouf of over 350 stocks in the Healthcare sector.  Each of these companies is currenty trading nearly three times below next years earnings.  No other Healthcare stocks even come close to this discount.  These 3 companies are currently more undervalued than any of the airline stocks I've recommended on the site.

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Why Warren Buffet Changed His Mind on Airline Stocks

Recently, Warren Buffet decided announced that he's been buying up airline stocks, contrary to his own advice in the past.  I have yet to see his reasoning behind his decision to invest about $1 Billion in American Airlines alone, along with a few hundred million dollars each in United Airlines and Delta Airlines.  I can see two possible reasons Buffet decided to make such a large investment in these airlines:

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Undervalued Dow Jones Stocks

Here is the current list of all companies in the Dow Jones, sorted by their 2014 Value Discount:

Ticker

P/E Ratio Used

Closing Price on 5/1/14

Current Value Discount

2014 Value Discount

2015 Value Discount

Company Name
UNH 10.6 $74.95 -23% -22% -15% UnitedHealth Group
MMM 16.6 $140.81 -19% -12% -3% 3M
DIS 17.3 $79.56 -21% -12% 0% Walt Disney
CVX 10.3 $124.94 -8% -10% -7% Chevron Corporation
MSFT 13.4 $40.00 -11% -10% -4% Microsoft Corporation
NKE 22.3 $72.92 -10% -10% 3% Nike
V 20.8 $206.09 -21% -9% 5% Visa
XOM 12.2 $101.41 -11% -9% -8% Exxon Mobil
KO 18.3 $40.78 -16% -6% 1% Coca-Cola
UTX 16.1 $116.80 -14% -6% 5% United Technologies
CAT 16.0 $105.07 -10% -5% 9% Caterpillar
WMT 14.3 $79.70 -13% -5% 3% Walmart
PG 18.8 $82.34 -15% -4% 3% Procter & Gamble
MCD 17.0 $100.96 -7% -3% 5% McDonald's
JNJ 16.7 $100.53 -13% -2% 5% Johnson & Johnson
INTC 14.1 $26.45 -1% 1% 7% Intel
GE 15.9 $26.77 -28% 1% 9% General Electric
AXP 16.8 $86.82 -2% 5% 16% American Express
DD 16.7 $66.76 -21% 8% 22% Du Pont
TRV 10.8 $90.83 23% 10% 8% Travelers
BA 19.0 $128.46 -14% 12% 23% Boeing
HD 20.5 $79.33 -3% 15% 33% Home Depot
MRK 19.8 $59.62 -51% 15% 22% Merck
JPM 11.7 $55.72 -15% 17% 29% JP Morgan Chase
GS 12.2 $160.37 15% 20% 29% Goldman Sachs
IBM 13.1 $193.53 -1% 21% 35% International Business Machines
PFE 18.0 $31.15 84% 29% 33% Pfizer
T 17.7 $35.58 71% 35% 41% AT&T
CSCO 16.0 $23.01 6% 38% 47% Cisco Systems
VZ 21.8 $47.22 85% 66% 78% Verizon Communications

At first glance, you might think Verizon (VZ) is Undervalued.  But look at the current value discount of 85%.  That means Verizon is already undervalued.  That could still mean VZ is poised to go up.  But, given the fact that last year VZ has been trading at a lower P/E than normal could likely mean that the market now values Verizon lower than in past years.  That basically means that the 21.8 P/E ratio used above will decrease over time, but the stock price will not.

I like to see companies that are valued where they normally are historically.  Cisco fits this nicely.  At 6%, they're

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4 Way Undervalued stocks to buy on the dip

The past 6 weeks has beaten down a lot of stocks.  Here are 4 way undervalued stocks to buy on the dip.

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Undervalued Large Cap stocks

Welcome to the first release of Undervalued companies.  Make sure to also check out the Way Undervalued Large Cap Picks.  The companies below didn't make the cut as Way Undervalued, which means the 2014 value discount isn't 100% or higher.  Instead, it includes companies that are at least 50% undervalued based on the 2014 value estimate.  Don't be fooled though.  If you are a value investor, the companies below are undervalued and worth considering.

You could argue that some of the 19 companies listed below are safer investments compared to some of the companies in my last post for small cap WayUndervalued stocks.  There's also a wider selection to choose from below than the WayUndervalued Large Cap stocks.  There are definitely more familiar names to pick from.  Here's the list:

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