Top 3 Most Underrated Companies to Invest In
31 different companies were evaluated to determine if they are sustainable for investment. The companies were evaluated through the ModernGraham model which is largely focused on the formulas of Benjamin Graham’s values on investing. These formulas help determine whether or not a company has value worth investing in. Only 5 of the 31 companies were determined to be sustainable enough to be worth investing in by Enterprising &Defensive Investors. The top three are listed below.
Bank of America Corp is highly worth investment for an Enterprising investor but not a Defensive Investor. This is due to the lessing concern with in the Enterprising investor for how many years the Corp has sustained an investment worthy status. The ModernGrahams’s evaluation deems the company worthy of investment. The company is showing to be currently undervalued considering its major growth from being worth $0.01 in 2012 to its value as of 2016 rising to $0.92. This earning growth potential has its growth projection to be over three percent every year for the next seven years.
Gilead Sciences Inc was also found to be worthy for an Enterprising investor and not a Defensive Investor. A Defensive investor would be to worried about the current low ratio and poor share dividend history. The Enterprising Investor is only truly focused on the level f debt to current assets ratio. The ModernGraham deems this company investment worthy so their is little to no risk involved. The company is also undervalued according to their massive growth as well. In 2012 their shares were worth $1.61 growing to be valued at $8.69 in 2016. They are projected to grow 0.72% every year for the next seven years.
Marsh & McLennan Companies Inc is too suitable for an Enterprising investor and not a Defense Investor. Marsh has not shown enough stability over the last ten years for a Defense investor to feel comfortable investing within this company. The Enterprising investor is focused only on the current debt to income ratio and Marsh has passed the test. The ModernGraham evaluation has once again proved a company to be worth an investment. Marsh's values have grown from 2012 to 2016 beginning at $1.52 and rising to $2.9.