Finding deep value stocks involves pinning down and investing in significantly undervalued companies based on their material worth. In effect, to find deep value stocks, you do research to find something – anything – the market missed and capitalized on the mispricing.

The approach, rooted in the principles popularized by the legendary investor Benjamin Graham and touted by Warren Buffer and others, seeks out stocks trading for less than their “true” worth due to market factors like temporary setbacks, market overreactions, or general investor bearishness. Deep value investors focus on financial and fundamental analysis to find stocks that are both undervalued and fundamentally sound. The ultimate goal is to capitalize on hidden, overlooked market inefficiencies by buying stocks on sale before waiting for markets to realize their mistake.

In many ways, deep value investing is a thing of the past. When Graham and his proteges were learning the ropes, digging into financial filings was a rarer and more esoteric form of fundamental analysis. Today’s digitization means markets price companies to the minute, leaving less room for true undervaluation. Still, factors point to these stocks being as close to deep value opportunities as you’ll find in today’s era.

H&R Block (HRB)

As the tax season sets upon us, H&R Block (NYSE:HRB) stands out as a deep value stock ready to run. Earlier in the year, the company faced challenges as speculation grew about the IRS possibly launching a free national tax filing service. But HRB has since recovered impressively and is now strategically poised to dominate the tax return sector and capitalize on various other revenue-generating opportunities.

HRB introduced a mobile banking service at the beginning of the year to offset the seasonal nature of its tax-related revenue. By April, this initiative had already attracted significant customer interest, with 291,000 users onboard and a collective deposit of over $280 million. Moreover, the company’s small-business accounting service witnessed a 10% year-over-year increase. These strategic moves are point to strong efforts to stabilize cash flow, a common challenge for tax-focused firms, to ensure a more consistent revenue stream throughout the year.

In addition to these developments, HRB is also making waves with its dividend policy. The company currently offers an impressive total yield of 9.28%, combining buybacks and dividend distributions. This remarkable figure makes HRB an attractive investment option, especially for value investors seeking diversified returns in uncertain market conditions.

Nintendo (NTDOY, NTDOF)

Nintendo (OTCMKTS:NTDOY, OTCMKTS:NTDOF) mixes growth potential and deep value, making it a perfect play for 2024. The general market buzz around Nintendo intensified recently, especially amid rumors of a collaboration with Google (NASDAQ:GOOG, NASDAQ:GOOGL). The potential partnership, which remains unconfirmed, suggests the duo may be developing a next-gen VR headset platform.

Adding to the intrigue, leaked emails from a Microsoft (NASDAQ:MSFT) court case indicate Microsoft’s significant interest in partnering with or acquiring Nintendo. Although these emails date back to 2020 and no concrete developments transpired, they highlight the considerable corporate interest in Nintendo. This positions Nintendo favorably for leveraging its brand and assets for substantial growth in 2024. And, of course, we can’t forget the impact of the upcoming Zelda movie on Nintendo’s franchising opportunities.

Nintendo’s financial management is also top-notch. Praised for its sound management in the Microsoft emails, the company currently has a substantial cash reserve. This financial strength puts Nintendo in a solid position to navigate economic uncertainties and capitalize on emerging opportunities. Additionally, its current total yield of 2.81% appeals to deep value investors, offering a steady return while they await the stock’s eventual repricing.

Medtronic (MDT)

Medtronic PLC (NYSE:MDT), a top-tier medical device manufacturer, is a prime choice among healthcare stocks for deep value divers. Despite a relatively flat performance throughout most of this year, shares ticked higher this month. Today, the stock is set up for a 5% total gain this year. But, looking ahead, the company’s 2024 prospects outweigh its modest performance – and make its current stock price an ideal entry point for investors.

Medtronic’s latest earnings report points to a solid growth trajectory post-pandemic (unlike many healthcare stocks) as it hit a 6% increase in revenue year-over-year. But, moving forward, Medtronic’s innovation alongside deep value tendencies point to the greatest upside.

Medtronic’s future potentiality lies in its ventures into artificial intelligence in healthcare. The collaboration with Nvidia (NASDAQ:NVDA), initiated in early 2023 to develop AI-driven platform solutions, should reach wide market usage by 2024. This holds promise for investors who have remained patient through the stock’s recent stagnation.

Medtronic’s current dividend yield of 3.57% further solidifies its status as a compelling deep value stock, offering both stability and potential for growth as we move into the new year.

On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.