- Value stocks and growth stocks are the two main types of stocks.
- They are generally traded for valuations below the average stock in the S&P 500.
- Most value stocks have stable revenues.
Publicly traded firms that are trading at low prices compared to their earnings and long-term growth prospects, are called value stocks. Their multiples such as P/E ratio is generally below the average P/E value of the benchmark index.
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Most value stocks showcase stable revenue and earnings, but trade below industry average.
Let's have a look at some of these ASX stocks with good earnings growth but are trading below their 52-week high.
Australia's marketplace that connects millions of consumers with thousands of retailers, mydeal.com (ASX:MYD) is a one stop shopping platform. Its products range from furniture, home & garden, fashion, to electronics, and baby & kids products.
For the half year ended on December 31, 2021, Mydeal's revenue grew 248 percent to $21.2 million which was $6.1 million in first half of FY20. The company's gross sales increased by 217 percent to $126.7 million as compared with $40 million in H1 FY20.
However, the company is trading much below the 52-week high of AU$2.20 and closed the day’s session at AU$0.595 each, up 0.85 percent on ASX on 18 June 2021.
Adore Beauty Group Ltd
Australian online beauty retailer Adore Beauty Group (ASX:ABY) is an online retail platform for the people who partners with beauty and personal care brands. It has products under the categories like skincare, fragrance, haircare, makeup, and all.
For the half year ended on December 31, 2020, ABY reported a revenue of AU$96.2 million, an 85 percent increase from previous corresponding period. Its net income was AU$2.5 million vs loss of AU$3.2 million.
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The company had a cash of AU$25.9 million as of December 31 with no debt in its books.
However, ABY's shares are trading much below the 52-week high of AU$7.420 and closed the day’s session at AU$4.34 each, down 2.25 percent on ASX on 18 June 2021.
Vulcan Energy Resources Ltd
Energy metals exploration company Vulcan Energy Resources Ltd (ASX:VUL) aims to become the first lithium producing company all over the world with zero greenhouse gas emissions.
From its combined geothermal energy and lithium deposit, the Zero Carbon Lithium Project is expected to produce a battery-quality lithium hydroxide chemical product.
Last month, the team at the pilot plant has received target specification for a direct lithium extraction (DLE) feed into its pilot plant. The team was able to extract more than 90 percent of the lithium chloride from Upper Rhine Valley brine.
In H1 FY2020, Vulcan Energy Resources Ltd revenues increased from AU$29K to AU$372K.
However, VUL's shares are trading much below the 52-week high of AU$14.20 and closed the day’s session at AU$8.11 each, up 0.25 percent on ASX on 18 June 2021.
Location intelligence company Nearmap Ltd (ASX:NEA) is mainly involved in online aerial photomapping in New Zealand, Australia and North America.
For the half year ended on December 31, 2020, Nearmap recorded 17 percent growth in its revenues increased to AU$54.9 million. The company's net loss decreased by 50 percent to AUD $9.4 million.
However, Nearmap's shares are trading much below the 52-week high of AU$3.22 and closed the day’s session at AU$1.92 each, up 3.79 percent on ASX on 18 June 2021.
Silver Lake Resources Ltd (ASX:SLR)
Silver Lake Resources (ASX:SLR) produces and explores gold. It is involved in gold mining and processing from the Mount Monger Operation, gold exploration and evaluation projects. Its segments include Deflector Operation and Mount Monger Operation.
The company announced today that it has a carbon-in-pulp circuit to its Deflector plant, around 160 kilometres east of Geraldton in WA's Murchison region.
For the six months periods ended in December 2020, SLR had a 22 percent increase in its revenue to AU$316.3 million. Its net income increased 48 percent to AU$65.8 million and reflect Deflectro segment increased 35 percent to AU$153.9 million.
However, SLR's shares are trading much below the 52-week high of AU$2.750 and closed the day’s session at AU$1.65 each, down 1.2 percent on ASX on 18 June 2021.