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Highlights
- Companies trading below their real worth are known as undervalued stocks, or value stocks.
- PE and PEG are some of the ratios used to recognise undervalued stocks apart from several other parameters.
The companies, which are trading below their real worth, are known as undervalued stocks, or value stocks. These stocks are undervalued owing to many factors, like bad public perception due to any unethical action taken by the company. Nevertheless, if the company has a robust financial position, the value-seekers can buy these stocks during such times prior to the stocks realizing their real market value.
Ratios like price-to-earnings (PE) ratio and price-to-earnings growth (PEG) ratio can be used to recognize uundervalued stocks. The stocks are typically undervalued if the PE ratio is low, and the PEG ratio is less than 1.
Based on these ratios, here are 5 value stocks that you should keep an eye on in 2022.
RELATED READ: Top 5 value stocks to buy in December 2021
© 2021 Kalkine Media®
Serco Group Plc (LON: SRP)
UK-based company Serco Group plc functions as a contractor that provides government services in sectors like defence, transport, health etc. The market cap of the FTSE250-listed company stood at £1,573.67 million as of 21 December 2021. It has given a return of 7.72% to its shareholders in the last one year and its year-to-date returns stood at 8.54% as of 21 December 2021. Its PE ratio stands at 5.43x, and it has a PEG ratio of 0.56x, as of 21 December 2021. Serco Group plc’s shares were trading at GBX 132.80, up by 1.32%, at 12:15 AM on 22 December 2021.
Barclays PLC (LON: BARC)
London-headquartered global bank Barclays PLC primarily operates through its two divisions, Barclays UK and Barclays International. The market cap of the FTSE100-listed company stood at £29,916.67 million as of 21 December 2021. It has given a return of 25.42% in the last one year and its year-to-date returns stood at 23.93% as of 21 December 2021. Its PE ratio stands at 5.71x, and it has a PEG ratio of 0.14x, as of 21 December 2021. Barclays PLC’s shares were trading at GBX 186.28, up by 1.10%, at 12.15 AM on 22 December 2021.
Londonmetric Property Plc (LON: LMP)
Leading UK-based REIT Londonmetric Property PLC principally invests in property development. The market cap of the FTSE250-listed company stood at £2,690.61 million as of 21 December 2021. It has given a return of 19.91% to its shareholders in the last one year and its year-to-date returns stood at 20.44% as of 21 December 2021. Its PE ratio stands at 5.88x, and it has a PEG ratio of 0.86x, as of 21 December 2021. Londonmetric Property PLC’s shares were trading at GBX 275.00, up by 0.29%, at 12.15 AM on 22 December 2021.
RELATED READ: Four key reasons why a stock is undervalued
© 2021 Kalkine Media®
Anglo American Plc (LON: AAL)
UK-based leading mining firm, Anglo American plc, is a major global producer of platinum, and it also produces diamond, copper, nickel, and so on. The market cap of the FTSE100-listed company stood at £39,109.79 million as of 21 December 2021. It has given a return of 21.68% in the last one year and its year-to-date returns stood at 21.65% as of 21 December 2021. Its PE ratio stands at 7.11x, and it has a PEG ratio of 0.46x, as of 21 December 2021. Anglo American PLC’s shares were trading at GBX 2,949.50, down by 0.64%, at 12.15 AM on 22 December 2021.
Redrow Plc (LON: RDW)
UK’s leading housebuilder Redrow plc has been performing quite well this year and is expected to grow further in 2022 with the government’s stance to boost the housing market. The market cap of the FTSE250-listed company stood at £2,361.08 million as of 21 December 2021. It has given a return of 27.29% to its shareholders in the last one year and its year-to-date returns stood at 19.38% as of 21 December 2021. Its PE ratio stands at 9.10x, and it has a PEG ratio of 0.55x, as of 21 December 2021. Redrow plc’s shares were trading at GBX 694.20, up by 1.40%, at 12.15 AM on 22 December 2021.
