In This Article:
As global markets react to the recent Federal Reserve rate cut, European stocks have shown mixed performance with a cautious outlook on monetary policy. Amid this environment, identifying undervalued stocks in Sweden could present unique opportunities for investors. In light of these market conditions, a good stock is typically characterized by strong fundamentals, resilience to economic fluctuations, and potential for growth despite broader market uncertainties.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
Name | Current Price | Fair Value (Est) | Discount (Est) |
Concentric (OM:COIC) | SEK221.00 | SEK407.66 | 45.8% |
Lindab International (OM:LIAB) | SEK290.00 | SEK532.08 | 45.5% |
Biotage (OM:BIOT) | SEK184.40 | SEK365.03 | 49.5% |
Securitas (OM:SECU B) | SEK130.55 | SEK258.74 | 49.5% |
Cavotec (OM:CCC) | SEK21.00 | SEK41.62 | 49.5% |
Tourn International (OM:TOURN) | SEK8.98 | SEK16.47 | 45.5% |
MilDef Group (OM:MILDEF) | SEK85.80 | SEK160.46 | 46.5% |
BHG Group (OM:BHG) | SEK14.67 | SEK26.83 | 45.3% |
Sinch (OM:SINCH) | SEK32.26 | SEK64.22 | 49.8% |
Lyko Group (OM:LYKO A) | SEK115.00 | SEK215.66 | 46.7% |
We're going to check out a few of the best picks from our screener tool.
H & M Hennes & Mauritz
Overview: H & M Hennes & Mauritz AB (publ) is a global retailer offering clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children with a market cap of SEK278.62 billion.
Operations: The company's revenue segments include clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide.
Estimated Discount To Fair Value: 18%
H & M Hennes & Mauritz AB is trading at SEK 173, below its estimated fair value of SEK 210.91. Despite a dip in recent quarterly earnings, the company has shown solid profit growth over the past year and forecasts indicate continued annual earnings growth of 15.55%, outpacing the Swedish market average. However, its dividend yield of 3.76% is not well covered by earnings, raising sustainability concerns despite strong revenue forecasts and return on equity projections.
Nolato
Overview: Nolato AB (publ) develops, manufactures, and sells plastic, silicone, and thermoplastic elastomer products for various sectors including medical technology, pharmaceutical, consumer electronics, telecom, automotive, hygiene, and other industrial sectors globally; it has a market cap of SEK15.00 billion.