It is time to build defensive portfolios to protect against geopolitical risks, higher inflation and rising interest rates. This is important as GEO stock is a defensive stock that is expected to be less volatile than the stock market as a whole. The GEO Group (NYSE: GEO) is the most undervalued stock on this list with a Beta less than 1.0, coming in at 0.71.
![what are micro cap stocks what are micro cap stocks](https://einvestingforbeginners.com/wp-content/uploads/2020/09/b224p1.png)
This is a combination that could deliver strong returns. Celestica is an undervalued stock with strong EPS growth. Throughout the period between 20, it has been consistently positive and above $300 million. Year-to-date, CLS stock is almost flat in a very tough year for the stock market, but the company shows resilience when it comes to its EBITDA. And even though declining sales growth is a concern, profitability is strong and consistent. The price-to-earnings (PE) Ratio (TTM) of 13.6 is low. It has an expected 3–5-year earnings per share (EPS) growth of nearly 15%, which is considered very positive. It operates in two main segments: Advanced Technology Solutions and Connectivity and Cloud Solutions.
![what are micro cap stocks what are micro cap stocks](https://p.calameoassets.com/200603205740-d82c9c7b79eb1c601b88a349ad47e10c/p1.jpg)
Undervalued Small-Cap Stocks: Celestica (CLS)Ĭelestica (NYSE: CLS) provides supply chain solutions to original equipment manufacturers and service providers on a global basis. Here are my picks for the three best undervalued small-cap stocks: CLS Meeting these three criteria supports the idea of these stocks being undervalued. I used the Zacks stock screener to find stocks with a price-to-earnings-growth (PEG) ratio of less than one, a price-to-book (P/B) value ratio of less than one and a price-to-sales (P/S) ratio of less than one.
![what are micro cap stocks what are micro cap stocks](https://cdn.nanalyze.com/uploads/2017/01/Ekso-Bionics-Exoskeleton-Wearable-Robot-1.jpg)
Second, a way to diversify a portfolio made of stocks can be based on market capitalization and not just on sectors and industries. Additionally, the S&P 500 index has a loss of nearly 6% in 2022, so looking for bargains in small-cap stocks now seems like a valid thing to do. So, why invest in undervalued small-cap stocks? There are a couple of reasons.įirst, the Russell 2000 Index that tracks 2,000 small-cap companies has underperformed in 2022 with losses of 11.17% as of Apr. This trend is likely to persist throughout the whole year.
![what are micro cap stocks what are micro cap stocks](https://static.seekingalpha.com/uploads/2016/7/6/saupload_Figure_1_thumb1.jpg)
stock market with unanticipated geopolitical risks, higher interest rates and a shift in the investment preference from growth to value.
WHAT ARE MICRO CAP STOCKS FREE
The GEO Group ( GEO): The real estate investment trust has consistent positive free cash flow.Celestica ( CLS): This technology company has a high expected EPS growth of nearly 15%.InvestorPlace - Stock Market News, Stock Advice & Trading Tips