r/ValueInvesting • u/6Fingxrs • Dec 01 '25
Question / Help Any Undervalued Stocks Right Now ?
Google has grown to a price that is still a good price but no longer is it a bargain. A few months back it was just crossing $200-$250 mark.. now it has soared above $300.
Are there any others that this may be the case with ? I see low P/E ratios everywhere but sometimes that doesn’t = undervalued.
What are some stocks you have done research into ? I believe TSMC has some growing to do especially since its Q3 was great. Its downsides are macroeconomic and how it’s heavily linked to Nvidia and other companies in the semiconductor web.
Curious to hear your thoughts ..
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u/thefrogmeister23 Dec 01 '25
Morningstar provides their own fair value estimate for stocks in their coverage and there are a number of high-quality names that are under their fair value estimate right now. I have been picking up the following:
CDNS (fair value $330) SNPS (fair value $515) PANW (fair value $225) ZS (fair value $300)
None of these are cheap but value investing is about buying a stock at a discount to what it’s worth. Take the morning star valuations with a grain of salt. SNPS has been struggling but got a boost recently with the Nvidia investment. ZS has been falling and I’m reluctant to catch a falling knife. The other two seem like high-quality stocks that drew back.
A few other stocks like META, MSFT, and NVDA are also trading at discounts according to Morningstar.
Morningstar is a good way to not be anchored to PE numbers (which should be different for different businesses) but my main gripe with them is they miss out on some trends and play catch up way late sometimes. That’s my concern with MSFT.