Value investing is a proven method that investors use to stay profitable in the stock market. Investors search for companies with oversold stock. This can happen because of recent news and poor sector performance. The company is often stable, has solid financials with the possibility of future growth.
Thus, these opportunities can be a perfect time to buy in hopes of exponentially increasing profit potential. Below are three stocks that may continually perform well and offer an excellent valuation for investors.
M/I Homes (MHO)
M/I Homes (NYSE:MHO) is a homebuilding company focusing on single-family homes with properties in Texas, Minnesota, Florida, Tennessee, Ohio, North Carolina, and Michigan. Also, they acquire undeveloped land for future single-family home construction. In addition, they originate and sell mortgages and offer other financial services relating to insurance.
Recently, MHO Q2 earnings results for 2023 stated a drop in net income of 14% and total revenue for homebuilding of $989 million. Financial services brought in only a tiny fraction of $25 million together, which is 3% compared to prior year. Within the same period, they reported an increase in new home contracts of 21%, and overall home deliveries decreased by 7%. Over the last year, the company has seen a rise in their share price of 114%. This is a company trading at a significant valuation.
Copa Holdings (CPA)
Panama City-based Copa Holdings (NYSE:CPA) offers cargo and passenger airline services, primarily running flights to South America, North America, and the Caribbean islands.
Copa Holdings has seen a significant increase in their share price so far this year by 41%. Still, this company remains trading at a reasonable valuation for investors. On August 9, Q2 earnings results were released, stating a net income drop of 86% and total revenue growth of 17%. Passenger traffic improved by 15% year over year.
Furthermore, Copa Holdings also announced they expect to receive an additional six Boeing 737 Max 9s throughout 2023. In total, the number of aircraft for the company is expected to reach 107.
Additionally, CPA will make another dividend payment of $0.82 per share to their shareholders on October 13. In early August, the company saw a drop in its share price of over 15%. This was due partly because of the reported significant decrease in net income, which also led to a greater value for investors. On their July traffic report, the company stated an increase in revenue generated per passenger of 13% compared to July 2022.
StoneCo (STNE)
Brazil-based fintech company StoneCo (NASDAQ:STNE) provides merchants and other partners with seamless transaction capabilities for in-store and online purchases. Currently, they serve over two million small and medium-sized Brazilian businesses.
With a 32% jump in share price, the company also has seen quite a few shifts in management over the first half of this year. In April, they announced the chief executive office (CEO) transition from former CEO Thiago Piauin to current CEO Pedro Zimmer. Piauin stepped down to join the board of directors. Then in May, StoneCo declared that Mateus Scherer would be appointed as chief financial officer (CFO).
On August 16, they released Q2 earnings results which stated a revenue increase of 28% and net income growth nearly six-fold.
As of this writing, Noah Bolton did not hold (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.
