This is not easy to invest in the stock exchange market. Investors can be classified on the basis of their stock portfolios. Those investors who are low in risk-taking usually prefer high dividend-paying shares or stocks while investors who are high risk-takers usually prefer to make investments in undervalued or falling knife stocks. Falling knife stocks are those which might fall at least 50% in the month or up to 80% in 6 months. These stocks are in that category which experienced a huge decline in the value of shares in less time. This is a very popular term for investors i.e. “catching the falling knife”. This is popular for those who tried to purchase shares at the lowest value and hold them until the price increase again. When the share value of the company declines to a great extent then it results in making the shares undervalued. This situation is considered by the majority of the investors as a good opportunity to buy stocks as soon as possible before the prices appreciate again.
We are going to share the list of the top 10 undervalued stocks in light of the post by Insider Monkey. Our list starts with Pacwest Bancorp which is one of the best-undervalued stock at present. PACW is a popular bank holding firm which is specialized in banking and financial solutions. During Q3 of 2020, the net earnings reported by the company were $45.5 million. Cardinal Capital of Amy Minella is the top-level hedge fund of this particular stock. The total investment of this hedge fund as of September was $71 million. Around 1600 shares were purchased by an insider at $16 each and now the price increases by 93%.
The next company on the list is Jazz Pharmaceuticals whose focus is more on patient lives through product commercialization that is addressing the critical medical requirements. JAZZ was facing trouble when investors were showing more interest towards other biotech companies that were engaged in innovating Coronavirus vaccines. The share value of JAZZ reduced by 6.9% in September 2020. The net income reported by the company as of September 2020 was around $242 million. Renaissance Technologies of Jim Simons is regarded as the top hedge fund that is holding stock of this company. A total of $475 million have been invested by this hedge fund in JAZZ. Around 11482 shares have been purchased by an insider at the rate of $112 and till then the price has increased by 44%.
If your interest developed in undervalued stocks and you want to learn more, then read 15 Best Undervalued Stocks to Buy Now.