And when I say "Deep Value" I don't mean companies like META or MSFT... While those companies are cheaper than the broader market, I wouldn't say they are "deep" value. I'm referring to companies that the market absolutely despises and has punished severely; down 60,70 or even over 80% from ATHs in some cases.
To make this interesting, any deep value stock picks must meet the following criteria:
- Consistent YoY Revenue growth over the past 3 years
- PE Ratio under 15
- FCF positive
- Net Repurchaser of shares
- Debt to Equity under 1
My top 3 picks based on current valuations, growth rates, and perceived business risk are:
-
PYPL
-
ADBE
-
LULU
What are some other stocks that meet this criteria that you think are worth a buy?