Top 20 Undervalued Stocks by Market Cap Class January 2021: Consumer Defensive

What are the top 20 Undervalued Stocks (selected over 5 market cap classes) in the Consumer Defensive Sector? I have used the analysis tools on the website to generate the content of this blog post. Have a look down the Welcome page for some of the free lists and reports available.

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Undervalued Stocks – Consumer Defensive Sector

Today our focus is the Consumer Defensive sector and we are looking at companies that are undervalued based on our Weighted Average Valuation (WAV) calculation which we do for the 8000 stocks each night in the StockCalc database. The Consumer Defensive sector includes a variety of industries such as Beverages, Confectioners, Farm Products, Household & Personal Products, Packaged Foods, Education & Training Services, Discount Stores and Grocery Stores. These companies tend to have steady revenues and earnings through the economic cycles. The stocks are also held for their dividends.

We generate our Weighted Average Valuation (WAV) from 5 models and Analyst consensus. Overview of the models used: Discounted Cash Flow (DCF value) is a valuation technique where cash flow projections are discounted back to the present to calculate value per share. A Comparables model values the company on the basis of ratios from selected comparable companies. We actually do 3 types of comparables models. An Adjusted Book Value (ABV) is calculated by multiplying book value per share by its historical Price to Book ratio. If we have Analyst coverage we look at the consensus target price.

Today’s Data – Consumer Defensive

In the table below we can see the close price (Jan 22th 2021) and valuation for these companies along with the ratio of valuation to price as well as their market cap class and average trading volume.

Symbol Company Name Close Price($) Valuation ($) Value/ Price Class Average Volume
STZ-N Constellation Brands 191.94 223.64 1.17 Large Cap 1695494
MO-N Altria Group 51.03 57.50 1.13 Large Cap 7300053
KR-N Kroger 28.37 30.80 1.09 Large Cap 4821759
KO-N Coca-Cola 57.61 62.00 1.08 Large Cap 12869732
MRU-T Metro 54.55 58.86 1.08 Large Cap 425624
BJ-N BJ’s Wholesale Club 21.96 27.32 1.24 Mid Cap 1467748
BG-N Bunge 55.88 62.88 1.13 Mid Cap 822653
MFI-T Maple Leaf Foods 24.81 27.67 1.12 Mid Cap 291456
SAFM-Q Sanderson Farms 152.98 167.52 1.10 Mid Cap 399574
GSX-N GSX Techedu 35.25 38.29 1.09 Mid Cap 3643077
CRESY-Q Cresud SACIF 6.12 10.99 1.80 Small Cap 238627
UNFI-N United Natural Foods 7.88 12.07 1.53 Small Cap 1185633
NUS-N Nu Skin Enterprises 38.05 56.30 1.48 Small Cap 804730
MGPI-Q MGP Ingredients 38.33 54.04 1.41 Small Cap 277627
SPTN-Q SpartanNash 13.13 18.09 1.38 Small Cap 131069
BRID-Q Bridgford Foods 31.04 45.31 1.46 Micro Cap 58739
TEDU-Q Tarena International 3.68 4.19 1.14 Micro Cap 1304351
DL-N China Distance Education 8.79 9.85 1.12 Micro Cap 52257
LFVN-Q Lifevantage 15.53 15.96 1.03 Micro Cap 67211
DWS-X Diamond Estates Wines 0.22 0.23 1.06 Nano Cap 65214

N-NYSE, Q-Nasdaq, A-American, T-Toronto, X-Toronto Venture

Lets look at a few companies…

Lets look at a couple of the companies on this list to get a better understanding of them.

Altria Group
Altria Group Inc along with its subsidiaries is engaged in the manufacture and sale of cigarettes, machine-made large cigars, pipe tobacco, smokeless tobacco products and wine.

Bunge Ltd is an agribusiness and food company with integrated operations. It acts as an oilseed processor and seller of packaged vegetable oils. The company also grows and processes Brazilian sugarcane to produce sugar and ethanol.

Tarena International
Tarena International Inc through its subsidiaries provides professional education services in China. It offers courses in IT subjects, non-IT subjects and kid education programs.

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