For investors that have the patience to ride out volatility in exchange for possible long-term upside, value stocks to buy that are discounted against book value may offer considerable intrigue. On paper, book value represents the difference between the company’s total assets and total liabilities. Therefore, if a company trades at a discount to book (relative to its underlying industry), investors may have a market goldmine on their hands.
To be sure, no one methodology offers a guaranteed pathway to success; otherwise, there would be no point in the myriad analyses that materialize for popular securities. Therefore, to better raise the odds in your favor, the below value stocks to buy also feature bullish support from Wall Street analysts.
Micron Technology (MU)
Based in Boise, Idaho, Micron Technology (NASDAQ:MU) is a semiconductor firm specializing in computer memory and data storage products. Presently, MU stock is attempting to break out of the volatility that impacted the technology sector last year. Since the start of Jan., MU gained nearly 22% of equity value. However, in the past 365 days, it’s down almost 22%.
Still, astute investors may consider Micron as one of the value stocks to buy because of its discount to book. Specifically, MU trades at 1.36-times book value. In contrast, the sector median pings at 2.4 times. Ultimately, Gurufocus notes that this stat ranks Micron better than 75.72% of the semiconductor industry. Notably, the market price also prices MU at trailing earnings multiple of 11.13. Here, the company ranks better than 73.11% of the chipmaking space. Finally, Wall Street analysts peg MU as a strong buy. Their average price target stands at $67.27, implying nearly 10% upside potential.
Jerash Holdings (JRSH)
An apparel manufacturer, Jerash Holdings (NASDAQ:JRSH) features business partnerships with some of the most popular brands today. In other words, these enterprises contract out to Jerash to pump out their branded apparel. Of course, with the troubles impacting the consumer economy, JRSH fell under volatile fire. In the trailing year, shares fell more than 28%.
Nevertheless, the opportunity for patient investors of value stocks to buy centers on the eventual economic recovery. On that note, JRSH trades at 0.84-times book value. In contrast, the sector median comes in at 0.76. Overall, this translates to Jerash ranking better than 66.16% of the apparel and accessories industry.
In addition, Jerash benefits from a cash-rich balance sheet. Operationally, its three-year revenue growth rate clocks in at 17.1%, blowing past most of its competitors. Lastly, covering analysts peg JRSH as a buy. Most recently, D.A. Davidson’s Michael Baker forecasted a $7 price target, implying almost 46% upside potential.
Kornit Digital (KRNT)
An Israeli-American international manufacturing company, Kornit Digital (NASDAQ:KRNT) produces high-speed industrial inkjet printers, and pigmented ink and chemical products for the garment and apparel, home goods and textile accessories decorating industry. Again, troubles with the consumer economy imposes pressures on Kornit. In the trailing year, KRNT fell a staggering 76%.
Nevertheless, if you view yourself as an ultra-patient investor of value stocks to buy, Kornit might be worth investigation. In particular, KRNT trades at 1.11-times book value. In contrast, the sector median stands at 1.95 times. Per Gurufocus, Kornit ranks better than 71.73% of the industrial products sector. In full disclosure, Kornit’s operational stats leave much to be desired. As a counterbalance, though, Kornit also features a cash-rich balance sheet. Moving on, analysts peg KRNT as a consensus moderate buy. Their average price target stands at $29.33, implying 52% upside potential.
Based in Norway, Opera (NASDAQ:OPRA) specializes in web browser development, financial technology (fintech) and video (mobile) games. Although the business profile seems risky, OPRA has been on the move. Since the Jan. opener, the stock gained over 47% of equity value. In the past 365 day, it’s up over 49%, a sharp contrast to the broader tech sector’s fallout.
Despite the sharp swing higher, a case exists that OPRA stands among the value stocks to buy. Specifically, shares trade at 0.89-times book value. On the other hand, the sector median value is 2.14 times. Also, OPRA trades at 2.2-times tangible book value. For this stat, the company ranks better than 62.23% of the interactive media industry. Also, the company benefits from a robust balance sheet, undergirded by an Altman Z-Score of 7.33, indicating low bankruptcy risk. As well, its three-year revenue growth rate comes in at 24.7%, beating out nearly 76% of its rivals.
Finally, Lake Street’s Mark Argento pegs OPRA as a buy. The expert forecasts a price target of $14, implying almost 59% upside potential.
Castle Biosciences (CSTL)
Based in Texas, Castle Biosciences (NASDAQ:CSTL) is a medical technology firm that specializes in diagnostics. Its aim is to transform disease management through enabling clinicians to guide their patients to the best treatment options. Unfortunately, it’s been rough going for Castle, with shares plunging nearly 50%.
Nevertheless, patient investors value stocks to buy may find CSTL intriguing. Primarily, CSTL trades at 1.47-times book value. In contrast, the sector median is 2.18 times. Overall, Castle ranks better than 65.26% of the medical diagnostics and research industry. As well, Castle features an enterprise-value-to-forward-revenue ratio of 1.8. This compares favorably to the sector median of 2.77. In addition, Castle benefits from a cash-rich balance sheet. Plus, its Altman Z-Score comes in at 7.12, indicating low bankruptcy risk. Looking to the Street, analysts peg CSTL as a unanimous strong buy. Their average price target stands at $44.50, implying nearly 101% upside potential.
Sensus Healthcare (SRTS)
Based in Florida, Sensus Healthcare (NASDAQ:SRTS) specializes in superficial radiation therapy or SRT. This treatment approach requires, per its website, minimal to no cutting. As well, the company claims no scarring and no down time. The biotech targets patients with non-melanoma skin cancer or keloids. While scientifically intriguing, SRTS fell 58% in the trailing year.
On the charts, SRTS certainly looks wildly speculative. However, regarding the financials, Sensus could be one of the value stocks to buy for patient investors. In particular, SRTS trades at 1.81-times book value. For comparison, the sector median value is 3.91 times. Also, the market prices SRTS at a forward multiple of 5.84. As a discount to projected earnings, Sensus beats out nearly 99% of the medical devices industry. Also, it’s worth noting that the company enjoys a cash-rich balance sheet. Its Altman Z-Score pings at 10.08, indicating very low risk of bankruptcy. Lastly, analysts peg SRTS as a unanimous strong buy. Their average price target stands at $16, implying almost 223% upside potential.
Nano-X Imaging (NNOX)
Based in Israel, Nano-X Imaging (NASDAQ:NNOX) is a medical imaging company. Per its website, Nano-X notes that two-thirds of the world’s population have no meaningful access to medical imaging. Therefore, the company may have a massive total addressable market. Unfortunately, the equities market doesn’t believe so. In the trailing year, NNOX fell more than 38%.
Still, if you’re a contrarian participant of value stocks to buy, Nano-X might be of interest. Specifically, NNOX trades at 1.46-times book value. For comparison, the sector median value pings at 2.58 times. Overall, this translates to the company ranking better than 70.2% of the medical devices sector.
From there, it’s a tough pill to swallow, particularly from a growth and profitability angle. However, it’s worth pointing out that Nano-X enjoys a cash-rich balance sheet. Also, its Altman Z-Score of 4.3 indicates low bankruptcy risk. Finally, Cantor Fitzgerald’s Ross Osborn pegs NNOX as a buy. The expert’s price target comes in at $21, implying nearly 253% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.