There are a number of great companies in the market today. By using the ModernGraham Valuation Model, I’ve selected the five undervalued companies reviewed by ModernGraham trading closest to their 52 week low. Each of these companies has been determined to be suitable for the Enterprising Investor according to the ModernGraham approach.  Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore need to select only the companies that present the least amount of risk. Enterprising Investors, on the other hand, are able to do substantial research and can select companies that present a moderate (though still low) amount of risk. Defensive Investors may also be interested in reviewing 5 Undervalued Companies for the Defensive Investor Near 52 Week Lows – August 2015 while also conducting further research into the following companies.
Be sure to also check out the history of this screen
Here are the 5 Undervalued Companies for Enterprising Investors Near 52 Week Lows:
Whole Foods Market (WFM)
Whole Foods Market Inc. is not suitable for Defensive Investors but it does pass the initial requirements of the Enterprising Investor. The Defensive Investor is concerned with the low current ratio, the inconsistent dividend history, and the high PEmg and PB ratios, while the Enterprising Investor is only initially concerned with the low current ratio. As a result, all Enterprising Investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.
When it comes to that valuation, it is critical to consider the company’s earnings history. In this case, it has grown its EPSmg (normalized earnings) from $0.70 in 2011 to an estimated $1.51 for 2015. This is a robust level of demonstrated growth and outpaces the market’s implied estimate for annual earnings growth of 7.79% over the next 7-10 years.
