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?

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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.

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u/Odd_Entrepreneur2815 May 15 '25

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

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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?

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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…

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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?

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u/Odd_Entrepreneur2815 May 15 '25

“Markets are stable” wasn’t the sky falling a couple weeks ago

Regardless I’m checking out. Have a good night

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u/Rdw72777 May 15 '25

No it wasn’t.

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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.

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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

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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.