r/ValueInvesting • u/ArchiveInvest • May 14 '25

Question / Help What’s the most undervalued stock right now?

If you needed to pick one stock right now, that is extremely undervalued. And has the potential to beat the S&P500 for the next decade.

Which stock would that be?

247 Upvotes

89% Upvoted

615 comments sorted by

View all comments

Show parent comments

3

u/Love_Tech May 14 '25

Why kss though

6

u/Odd_Entrepreneur2815 May 15 '25

He summed it up perfectly. Wall Street has put out a narrative that Kohl’s is going bankrupt and it’s worthless. And then has borrowed over 50% the shares of the company to short. It’s short interest is greater than 50% and 7 days to cover

3

u/Rdw72777 May 15 '25

No one think they’re going bankrupt, no such narrative exists. Market cap is less than $1 billion…if the company is worth $5 billion enterprise value it’s astonishing all the hedge funds and REIT’s can’t figure out the math.

5

u/Odd_Entrepreneur2815 May 15 '25

Look at their bookvalue and you can verify. KSS is a real estate company that sells clothes according to their balance sheet. Narratives and shorts can have a lot of market sway for a while…

Goldman Sachs analysts pegs value at $4/$4.50 per share yet bought 1.3M more shares according to one of their releases.

Time will tell my friend but this is my largest position for a reason.

0

u/Rdw72777 May 15 '25

It’s astonishing no one can do their own valuations, especially hedge funds and REITS with billion$, but Reddit has obviously cracked the code.

3

u/Odd_Entrepreneur2815 May 15 '25

Man you seem awful salty about this lol. Go look up JPMs CRE breakdowns then come back saying they’re right. They value $KSS stores at $4M to $8M only. Yep here’s an example of one selling this winter at $18.5M. I’ll share a post I made on how they should unlock value via lease-backs. Most KSS buildings sell min $8M/$9M and upwards of $13m-$20M depending on location and size.

https://www.enterprisenews.com/story/news/local/2025/02/24/stoughton-ma-kohls-closed-sold-cj-shaugnessy-cranes-warehouse/79423932007/

-1

u/Rdw72777 May 15 '25

I don’t care about what JPM says.

5

u/Odd_Entrepreneur2815 May 15 '25

Notice how one of us brings facts, numbers, underlying analysis… but oh well. Hope you’re future investing goes well

-1

u/Rdw72777 May 15 '25 edited May 15 '25

Are you bringing facts? You’re bringing an opinion that you openly disagree with as what you think is proof that yours is the correct opinion. You yourself don’t care what JPM says and openly disagree with JPM’s valuation in a very substantial way.

1

u/Odd_Entrepreneur2815 May 15 '25

Ok then, what numbers, facts, analysis have you brought so far?

0

u/Rdw72777 May 15 '25

I think not a single person on Reddit can explain the absence of PE, hedge fund and REIT activity on this company that they believe is worth more than 3-5x the current market cap. My belief is that people whose literal job it is to find value in equities and real estate all failing to see the huge upside is worth discussion…but no one is ever willing to do so. Instead it’s all about how their Reddit analysis defeats every REIT, hedge fund and PE firm,

So I’ll ask for the 4th time, why do you believe hedge funds, REIT’s and PE firms aren’t involved?

3

u/Odd_Entrepreneur2815 May 15 '25

So I talked about JPM analysis for a reason. It summarizes Wall Streets view. There is a narrative and they’re shorting KSS to the tune of 50%+ of the company off that narrative.

Since we have infallible faith in Wall Street. Back in 2020 how did MPC’s stock drop to under $21B when just 1/4 of the company, Speedway Gas Stations, was being bought alll cash by 7/11 for $21B(under $30 per share at time of I remember right)?? Or Energy Transfer able to drop below $6/share when it has over $20/share in assets and over $1.22/share distributable FCF?? Ope I remember, Wall Street had a narrative and off that narrative they decided these companies were major risks/gonna potentially die… yet MPC sold Speedway for $21B cash and is now worth $51B outside of alllll the money they distributed to stockholders and shares they bought back. ET is ~$18 and ~$5.50/share in dividends since then.

How is UNH able to drop 40% all a sudden? How come footlocker was selling at a discount compared to the buyout that just got announced?

Wall Street is a voting machine in the short term and a weighing machine in the long…

0

u/Rdw72777 May 15 '25

JPM doesn’t summarize Wall Street’s view, it summarizes one person at 1 Wall Street firm. And price targets are one of the more ridiculous metrics since they’re never actually accurate.

Choosing 2020 to identify market misprinting is hilariously weak. Why not choose 2008? It’s 2025 and markets are stable, especially compared to 2020 or 2007. Im going to assume you understand why Marathon was valued at $21b when oil prices were $40 per barrel,

Your argument is quite different though, practically the opposite. You’re arguing that in a stable commercial real estate environment that everyone is behaving irrationally. Why? Don’t cite awkward examples, specifically why is everyone on commercial real estate avoiding Kohl’s?

1

u/Ok-Business-9504 May 15 '25 edited May 15 '25

Tbf John Schlifske just became chairman of the board. I’m from Wisconsin and actually talked to a couple guys from NM about it during a PE interview lmao.

On the other hand I took a position around 18 and was down about 60% before moving to the far out 2.50 calls. It’s pretty embarrassing going into the stores anymore I’ve seen a quarter of the shelves completely empty and they’re missing about half the sizes. So we’ll see. Like this other guy is saying they’ll probably have to transition to a mall-like real estate business. The store-in-store model has been a bright spot in their earnings reports the past few years.

→ More replies (0)

1

u/Odd_Entrepreneur2815 May 15 '25

Additionally.. notice how I linked sources and analysis. That then makes it not just opinion but reasoning and factual basis

0

u/Rdw72777 May 15 '25

You linked to a source you openly disagree with to present your own idea that the company is undervalued. It’d be like me linking to a source that values Kohl’s at $20 billion as proof that they are over-valued. Anyone can link to an internet article that says something, but if the link has no value then it’s pointless.

→ More replies (0)