{"id":175599,"date":"2024-05-14T16:37:37","date_gmt":"2024-05-14T13:37:38","guid":{"rendered":"https:\/\/kupitiblog.store\/576r\/heres-how-to-hunt-for-undervalued-stocks-in-this-correction\/"},"modified":"2024-05-14T16:37:37","modified_gmt":"2024-05-14T13:37:38","slug":"heres-how-to-hunt-for-undervalued-stocks-in-this-correction","status":"publish","type":"post","link":"https:\/\/kupitiblog.store\/576r\/heres-how-to-hunt-for-undervalued-stocks-in-this-correction\/","title":{"rendered":"Here\u2019s How to Hunt for \u201cUndervalued Stocks\u201d in This Correction"},"content":{"rendered":"<p dir=\"ltr\">The markets have again corrected in Thursday&#x27;s session with the benchmark <span class=\"aqPopupWrapper js-hover-me-wrapper\">Nifty 50<\/span> index falling over 220 points, breaking below 21,900, by 10:42 AM IST. Although the very short-term trend seems to be negative, we are ye to see the formation of lower high and lower low on the daily time frame.<\/p>\n<p dir=\"ltr\">For those trying to hunt for undervalued stocks to prepare in advance for a probable reversal, here\u2019s a simple way to start building a portfolio.<\/p>\n<p dir=\"ltr\">We\u2019ll use the InvestingPro+ advanced screener and filter stocks based on the criteria \u201cFair value &gt; 20%\u201d. This filter will give us a list of stocks that are trading below their average intrinsic value but obviously, we cannot buy every stock out there in the list.<\/p>\n<p dir=\"ltr\">\n<p dir=\"ltr\">The second step we\u2019ll follow is to look for a financial health score of 3 or above. This tool analyzes over 100 parameters across 5 broad categories and rates them out of 5. The higher the score the better the company is positioned fundamentally.<\/p>\n<p dir=\"ltr\"><img decoding=\"async\" src=\"https:\/\/kupitiblog.store\/576r\/wp-content\/uploads\/2024\/05\/b64273284f52f0a990e208e144e13c2f.png\"  \/><\/p>\n<p dir=\"ltr\">Image Source: InvestingPro+<\/p>\n<p dir=\"ltr\">For eg. one of the stocks that caught my attention is Ikio Lighting Limited. It manufactures and sells light-emitting diode (LED) lighting solutions in India and has a market capitalization of INR 2,275 crore.<\/p>\n<p dir=\"ltr\">After analyzing it through 12 different financial models, its average intrinsic value (fair value) is coming at INR 363, which is a healthy 27.6% upside from the CMP of INR 284<\/p>\n<p> 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure <u>here<\/u> or <b> remove ads <\/b>.<\/p>\n<p dir=\"ltr\"><img decoding=\"async\" src=\"https:\/\/kupitiblog.store\/576r\/wp-content\/uploads\/2024\/05\/c29c4f9458692da7e85d1ba8cbaedbf4.png\"  \/><\/p>\n<p dir=\"ltr\">Image Source: InvestingPro+<\/p>\n<p dir=\"ltr\">After that, when we look at the financial health score, it is a good 3 out of 5, meaning better than average fundamentals. Once these 2 parameters are satisfied, then we look at ProTips for any red flag that\u2019s concerning.<\/p>\n<p dir=\"ltr\">ProTips gives us a valuable piece of information &#8212; the company has been profitable over the last 12 months which is important to know considering the fact it is a very small company. Profitability is an important parameter that separates the <span class=\"aqPopupWrapper js-hover-me-wrapper\">wheat<\/span> from the chaff. It also tells more cash in books than debt which is always a positive sign. <\/p>\n<p dir=\"ltr\">Those having a little knowledge of technical analysis can also look at the charts to better time the entry, however, the stock selection can be done this way which will fetch high-quality and undervalued stocks<\/p>\n<p dir=\"ltr\">\n<p dir=\"ltr\">\n<p dir=\"ltr\">\n<\/p>\n<p><a target=\"_blank\" rel=\"nofollow noopener\" href=\"http:\/\/www.investing.com\/analysis\/heres-how-to-hunt-for-undervalued-stocks-in-this-correction-200648365\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The markets have again corrected in Thursday&#x27;s session with the benchmark Nifty 50 index falling over 220 points, breaking below 21,900, by 10:42 AM IST. Although the very short-term trend seems to be negative, we are ye to see the formation of lower high and lower low on the daily time frame. For those trying &hellip;<\/p>\n","protected":false},"author":1,"featured_media":175997,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3337],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v16.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Here\u2019s How to Hunt for \u201cUndervalued Stocks\u201d in This Correction - BiznesSMI - \u043a\u043e\u0442\u0438\u0440\u043e\u0432\u043a\u0438 \u0432\u0430\u043b\u044e\u0442, \u0430\u043a\u0446\u0438\u0438, \u0444\u043e\u0440\u0435\u043a\u0441, \u0438\u043d\u0434\u0435\u043a\u0441\u044b, \u0430 \u0442\u0430\u043a\u0436\u0435 \u0442\u0435\u0445\u043d\u0438\u0447\u0435\u0441\u043a\u0438\u0439 \u0430\u043d\u0430\u043b\u0438\u0437, \u0433\u0440\u0430\u0444\u0438\u043a\u0438, \u0444\u0438\u043d\u0430\u043d\u0441\u043e\u0432\u044b\u0435 \u043d\u043e\u0432\u043e\u0441\u0442\u0438 \u0438 \u0430\u043d\u0430\u043b\u0438\u0442\u0438\u043a\u0430.<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"ru_RU\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Here\u2019s How to Hunt for \u201cUndervalued Stocks\u201d in This Correction - BiznesSMI - \u043a\u043e\u0442\u0438\u0440\u043e\u0432\u043a\u0438 \u0432\u0430\u043b\u044e\u0442, \u0430\u043a\u0446\u0438\u0438, \u0444\u043e\u0440\u0435\u043a\u0441, \u0438\u043d\u0434\u0435\u043a\u0441\u044b, \u0430 \u0442\u0430\u043a\u0436\u0435 \u0442\u0435\u0445\u043d\u0438\u0447\u0435\u0441\u043a\u0438\u0439 \u0430\u043d\u0430\u043b\u0438\u0437, \u0433\u0440\u0430\u0444\u0438\u043a\u0438, \u0444\u0438\u043d\u0430\u043d\u0441\u043e\u0432\u044b\u0435 \u043d\u043e\u0432\u043e\u0441\u0442\u0438 \u0438 \u0430\u043d\u0430\u043b\u0438\u0442\u0438\u043a\u0430.\" \/>\n<meta property=\"og:description\" content=\"The markets have again corrected in Thursday&#x27;s session with the benchmark Nifty 50 index falling over 220 points, breaking below 21,900, by 10:42 AM IST. Although the very short-term trend seems to be negative, we are ye to see the formation of lower high and lower low on the daily time frame. For those trying &hellip;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/kupitiblog.store\/576r\/heres-how-to-hunt-for-undervalued-stocks-in-this-correction\/\" \/>\n<meta property=\"og:site_name\" content=\"BiznesSMI - \u043a\u043e\u0442\u0438\u0440\u043e\u0432\u043a\u0438 \u0432\u0430\u043b\u044e\u0442, \u0430\u043a\u0446\u0438\u0438, \u0444\u043e\u0440\u0435\u043a\u0441, \u0438\u043d\u0434\u0435\u043a\u0441\u044b, \u0430 \u0442\u0430\u043a\u0436\u0435 \u0442\u0435\u0445\u043d\u0438\u0447\u0435\u0441\u043a\u0438\u0439 \u0430\u043d\u0430\u043b\u0438\u0437, \u0433\u0440\u0430\u0444\u0438\u043a\u0438, \u0444\u0438\u043d\u0430\u043d\u0441\u043e\u0432\u044b\u0435 \u043d\u043e\u0432\u043e\u0441\u0442\u0438 \u0438 \u0430\u043d\u0430\u043b\u0438\u0442\u0438\u043a\u0430.\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-14T13:37:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/kupitiblog.store\/576r\/wp-content\/uploads\/2024\/05\/b64273284f52f0a990e208e144e13c2f.png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\u041f\u0440\u0438\u043c\u0435\u0440\u043d\u043e\u0435 \u0432\u0440\u0435\u043c\u044f \u0434\u043b\u044f \u0447\u0442\u0435\u043d\u0438\u044f\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 \u043c\u0438\u043d\u0443\u0442\u044b\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/kupitiblog.store\/576r\/#website\",\"url\":\"https:\/\/kupitiblog.store\/576r\/\",\"name\":\"BiznesSMI - 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