Today, July 27, 2022, Dow Jones is trading at ~31,884, the S&P 500 at ~3,975, and Nasdaq at ~11,856. While the falling prices of major stock market indices signal low market confidence, this is an excellent time to search for undervalued stocks.
In this post, we found 5 good stocks to buy for 2022 that are both undervalued and issued by profitable and stable companies.
Just make sure that you do your own due diligence after going through this list before you invest in any of them.
Let’s get started…
1. Alto Ingredients Inc (NASDAQ: ALTO)
Business
Alto Ingredients Inc, founded in 2003 and headquartered in Pekin, Illinois, is an essential ingredients and specialty alcohol producer.
The company focuses on five markets: Home & Beauty, Health, Essential Ingredients, Food & Beverage, and Renewable Fuels.
Its customer base consists of major consumer products manufacturers and food and beverage companies.
The company does business through 3 segments:
- Marketing and distribution (marketing and trading for alcohol and essential ingredients)
- Pekin Campus production (products made at the firm’s Pekin, Illinois, campus)
- Other production (selling from the firm’s other facilities)
Forecast
Based on the 3 analysts’ 12-month median price target of $8 and the stock’s trading price, ALTO now has a 108.33% upside. The highest price target is $16 which represents a 316.66% upside and the lowest is $8 which is the same as the median.
Fundamentals
| P/E ratio | 6.29x |
| P/B ratio | 0.8x |
| ROE (Last Year) | 13.34% |
| Revenue Growth (YoY) | 34.65% |
| Current Ratio | 3.29x |
| Interest Coverage | 13.91x |
| D/E ratio | 0.4x |
Source: ALTO Annual Report
2. Eagle Bulk Shipping Inc (NASDAQ: EGLE)
Business
Eagle Bulk Shipping Inc, incorporated in 2005 and headquartered in Stamford, Connecticut, engages in the shipping and logistics industry worldwide.
More specifically, the company operates in the ocean transportation of dry bulk cargoes via dry bulk vessels.
Its fleet consists of Ultramax and Supramax bulk carriers.
Eagle Bulk Shipping has the following services:
- Vessel maintenance and repair
- Commercial operations & technical supervision
- Vessel acquisition and sale
- Finance, accounting, treasury and information technology services
- Legal, compliance and insurance services
Forecast
Based on the 8 analysts’ 12-month median price target of $77.5 and the stock’s trading price, EGLE now has a 48.75% upside. The highest price target is $87 which represents a 66.98% upside and the lowest is $50 which represents a 4.03% downside.
Fundamentals
| P/E ratio | 4.41x |
| P/B ratio | 1.21x |
| ROE (Last Year) | 27.54% |
| Revenue Growth (YoY) | 116.09% |
| Current Ratio | 1.26x |
| Interest Coverage | 8.1x |
| D/E ratio | 0.67x |
Source: EGLE Annual Report
3. Chuy’s Holdings Inc (NASDAQ: CHUY)
Business
Chuy’s Holdings Inc, founded in 1982 and headquartered in Austin, Texas, operates restaurants under the Chuy’s brand name in the US.
The company offers a distinct menu of freshly prepared Mexican and Tex-Mex inspired dishes. These include burritos, fajitas, tacos, enchiladas, combination platters and daily specials, complemented by a range of soups, appetizers, and salads.
Chuy’s Holdings’ restaurants also offer a full-service bar consisting of a variety of beverage offerings.
Forecast
Based on the 6 analysts’ 12-month median price target of $31 and the stock’s trading price, CHUY now has a 45.53% upside. The highest price target is $35 which represents a 64.31% upside and the lowest is $23 which represents a 7.98% upside.
Fundamentals
| P/E ratio | 14.2x |
| P/B ratio | 1.62x |
| ROE (Last Year) | 11.48% |
| Revenue Growth (YoY) | 23.52% |
| Current Ratio | 2.7x |
| Interest Coverage | 238.9x |
| D/E ratio | 0.88x |
Source: CHUY Annual Report
4. Harley-Davidson Inc (NYSE: HOG)
Business
Harley-Davidson, founded in 1903 and based in Milwaukee, Wisconsin, is a global leading manufacturer of heavy-weight motorcycles, parts, and accessories.
The company sells touring, cruiser, and custom motorcycles and provides Harley-Davidson , riding gear, apparel,motorcycle parts, accessories, and merchandise.
Harley-Davidson Financial Services provides insurance brokerage services and retail financing to customers and wholesale financing to dealers.
The firm recently expanded its operations into electric with the LiveWire brand and the middle-weight market with its Pan America model.
Forecast
Based on the 8 analysts’ 12-month median price target of $40.5 and the stock’s trading price, HOG now has a 21.73% upside. The highest price target is $60 which represents a 80.34% upside and the lowest is $35 which represents a 5.19% upside.
Fundamentals
| P/E ratio | 7.94x |
| P/B ratio | 2.01x |
| ROE (Last Year) | 25.45% |
| Revenue Growth (YoY) | 31.61% |
| EPS Growth (YoY) | 41,800% |
| Current Ratio | 1.36x |
| Interest Coverage | 25.45x |
| D/E ratio | 3.32x |
Source: HOG Annual Report
5. Intrepid Potash Inc (NYSE: IPI)
Business
Intrepid Potash Inc, founded in 2000 and based in Denver, Colorado, extracts and produces potash in the United States and internationally.
The company does business via 3 segments:
- Potash (producing and selling potash as a component of oil and gas drilling fluid to the industrial market, as a nutrient supplement to the animal feed market, and as a fertilizer input to the agricultural industry)
- Trio (producing and selling specialty fertilizer that consists of sulfate, potassium, and magnesium)
- Oilfield solutions (offering water, salt water disposal services, high-speed potassium chloride mixing services, and trucking services)
Forecast
Based on the 2 analysts’ 12-month median price target of $50 and the stock’s trading price, IPI now has a 17.28% upside. The highest price target is $60 which represents a 40.74% upside and the lowest is $40 which represents a 6.16% downside.
Fundamentals
| P/E ratio | 2.28x |
| P/B ratio | 0.86x |
| ROE (Last Year) | 37.65% |
| Revenue Growth (YoY) | 37.25% |
| Current Ratio | 2.13x |
| Interest Coverage | 21.98x |
| D/E ratio | 0.15x |
Source: IPI Annual Report
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