Introduction
InvestingPro offers a list of undervalued stocks to help users identify potential investment opportunities. However, users may notice that some stocks with high fair value upside are not included in these lists. This article explains the reasons behind this and how users can find a list of stocks based purely on fair value using the InvestingPro screener.
Factors Affecting Inclusion in Undervalued Stocks Lists
InvestingPro's undervalued stocks lists are not based exclusively on fair value upside. There are other factors that determine whether or not an asset gets displayed on this list, including:
- Trading Volume: Stocks with low trading volume are less liquid and carry higher risk. To ensure that the undervalued stocks list features more reliable and accessible investment opportunities, InvestingPro prioritizes stocks with higher trading volume.
- Market Capitalization: Smaller companies may not have reliable fair value estimates due to their size. To maintain a higher level of accuracy and reliability, InvestingPro focuses on stocks with larger market capitalization.
- Overall Financial Health: The financial health of a company can impact the reliability of fair value as a trading signal. Companies with inconsistent financial health scores may not be included in the undervalued stocks list, as their fair value may not be a great indicator for potential investment.
Finding Stocks Based Purely on Fair Value
If users are interested in finding a list of stocks based solely on fair value without considering the factors mentioned above, they can use the InvestingPro Screener. The screener allows users to customize their search criteria and filter stocks based on their preferences, including fair value upside.
An example of the screener: https://www.investing.com/pro/screener/strong-upside
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