8 Most Undervalued Value Stocks To Buy According To Analysts

1. Nomad Foods Limited (NYSE:NOMD)

Average Upside Potential: 36.66%  

Forward P/E: 11.14

EPS Growth This Year: 9.70% 

Number of Hedge Fund Holders: 30

Nomad Foods Limited (NYSE:NOMD) serves as one of the largest frozen food companies in Europe. The company manufactures, sells, and distributes a range of branded frozen food products across 22 European markets. Nomad Foods was formed in 2015 and is headquartered in the United Kingdom. The firm is an owner of leading brands including Birds Eye, Findus and igloo.

Nomad Foods is targeting the historically resilient and steadily growing category of frozen food. As claimed by Nomad Foods, the company has an 18% share within Western Europe’s €22 billion savoury frozen food market. With €3.9 billion in annual sales, the company makes its place among some of the top European frozen food companies. The firm’s attractive position is also backed up by secular winds such as frozen food bringing convenience by cutting down on the prep and meals made from frozen costing €2 to 3 less compared to chilled equivalents.

The growing momentum behind the business of Nomad Foods Limited (NYSE:NOMD) was evident in Q2 results. Reported revenue grew 1.1% to €753 million and adjusted EBITDA increased 5.3% to €139 million. Gross margin increased 270 basis points to 30.9%, driven by a positive product mix performance as the firm invested in its core most profitable must-win battles, supply chain productivity, and leveraged revenue growth management capabilities.

The runway for the firm’s growth is extensive with strong per capita consumption of frozen food across many European countries. The firm is focusing on a dynamic category with promising future growth prospects. With a strong market position complemented by favorable market conditions, Nomad Foods Limited (NYSE:NOMD) is a major pure-play frozen leader in Europe. As of Q2, the stock is held by 30 hedge funds.

While we acknowledge the potential of NOMD as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than NOMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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