5 Undervalued ASX Stocks To Buy & Hold in 2021 (Keep These On Your Watchlist)

In this video I am going to show you 5 ASX stocks that are potentially undervalued, and could provide great returns over the next 5 plus years. We are going to look at some important performance metrics and also assess the future prospects of these businesses. All of which are on my Watchlist at the moment.

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5 Undervalued ASX Stock To Buy & Hold in 2021 (Keep These On Your Watchlist)

Stock No 1: Harvey Norman (ASX: HVN)

From 2020 to 2021 the company has grown it’s earnings by 71%, and the compounded growth rate of its revenue for the past 5 years has been 28.6%, and is expected to continue growing by 14% per year in the future..

As of this recording the stock is currently trading at $4.95 and through a discounted cash flow analysis, on Simplywallstreet.com the fair value of the stock should be around $6.83, therefore its trading at 27.6% discount.

Harvey Norman has also delivered great average Return On Equity numbers of 16%, which is pretty good as the industry standard is around 17%. Return on Equity essentially shows us how good a company is at turning profit into more profit.

Stock No 2: Nickel Mines (ASX: NIC)

According to some analysts, at the time of this recording, on Simply Wall Street, this stock is trading at a pretty significant discount of 87.4% of the current market price, and, according to these analysts, the fair value of the stock should be at around $8.35.

If we look at the insider trades we can see there has been a fair bit of buying from some of its largest shareholders. On this graph we can see that in the past 12 months 3 large shareholders of the company have bought even more stock investing with a combined additional investment over 4 million dollars, just from individual shareholders. And that’s not including additional investment from other institutions.

Stock No 3: JB Hi Fi (ASX: JBH)

A few things I really like about this stock:

Their Return on Equity is really strong and generally sits above 20% each year. It has also almost tripled its revenue numbers in the past 5 years alone from 3.9 billion in 2016 to close to 9billion in 2021. They have been growing their dividends each year for the past 5 years. They have been increasing their Book Value over the same period of time. Book Value is total assets minus total liabilities and shows us if a company is increasing or decreasing its asset each year. In the case of JB hi-fi, it is increasing its assets each year which gives further protection to investors.

Stock 4: Northern Star Resources (ASX: NST)
Northern Star Resources Ltd is an Australian-based gold producing company. The Company is principally engaged in exploration, development, mining and processing of gold deposits and the sale of refined gold.

The company share price has dropped by over 40% in the past year, and this is mainly due to the significant drop in gold prices over the same period of time.

Stock No 5: Domino's Pizza Enterprises (ASX: DMP)

Love or hate their pizzas, this company is moving in the right direction.

Dominos is fast becoming more of a technology disruptor than a hospitality chain. What I think you are buying, when you purchase Dominos stock, amongst other things, is innovation. No other Food delivery company has the level of technology that Dominos employs.

From a high converting website and mobile app, to text message promotions and pictures of your hot items before they are even delivered, Dominos is really a cut above the rest in the Consumer Food and Beverage sector, in my opinion.

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Undervalued Stocks Spreadsheet: https://bit.ly/3EiY0uo

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* Disclaimer

This video is not intended as financial or investment advice and should not be construed or relied on as such. This video is for entertainment purposes only. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial or investment adviser.

Contact: jaketonymail@gmail.com

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