5-Star Stocks for Value Investors

THE VALUE INVESTOR: Risk averse investors, look away now. These seriously undervalued stocks are only for the brave - those who are willing to risk it all for a bumper profit

Emma Wall 1 October, 2015 | 11:36AM
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Looking for a bargain stock to add to your portfolio? If you have nerves of steel and a long-term investment horizon, consider these five companies which are trading at significantly less than their estimated fair value share price.

Banco Santander (SAN)

Despite a Spanish real estate downturn that has persisted since 2008, Spain-based Banco Santander has managed to stay profitable throughout, largely due its geographic diversity, says Morningstar equity analyst Timothy Puls. While loan losses piled up in Spain, the bank’s Latin American operations in Brazil, Chile, and Mexico have been very profitable.

Latin America has generated half of the bank’s profits over the past three years and should remain the largest contributor going forward. Now that it seems the worst of Spain’s economic issues have already surfaced and taken their toll on the bank, Puls expects Banco Santander to be able to once again generate healthy and stable returns for shareholders.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Banco Santander SA3.33 EUR0.00Rating
BHP Group PLC2,240.50 GBX-0.24Rating
Casino Guichard-Perrachon SA27.51 EUR-1.11Rating
Elekta AB Class B113.20 SEK0.85Rating
Volkswagen AG267.40 EUR-0.52Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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