What does low valuation mean in the stock market? You can often hear a word in the stock market, undervalued. Of course, low valuation is relative and needs to be extended throughout the cycle. For stocks, low valuations are generally the industry that has been making adjustments

undervalued mean in the stock market?

can often hear a word in the stock market, undervalued. Of course, low valuation is relative and needs to be extended throughout the cycle. For stocks, the low valuation is generally the industry has been making adjustments recently.

In addition, there are some accidents in the company itself, However, if the company's adjustment or industry adjustment is over, the company's valuation will be restored and there will be a chance of profit. What are the advantages of choosing low-valuation stocks?

first, medium and long-term investment is suitable for choosing low-valuation stocks.

If you look at medium and long-term investors, the period of low valuation is a more suitable period for layout . Of course, this also requires extraordinary endurance and trust your choices.

In the short term, there are also uncertain factors for low-valuation stocks. of course also depends on the company's market share and industry. If it is an emerging industry, the company will undergo valuation repair after the adjustment, and the stock price will return to normal.

Second, low-valuation stocks also depend on the fundamentals of the company.

Generally speaking, the industry adjustment of a company will affect the company's performance in the short term. However, a company with strength will quickly analyze, start from the adjusted content, and innovate the company.

also develops vertical fields and expands the company's business, so as to help the company's business return to normal situations and survive the most difficult period.

Third, stocks with low valuations have greater opportunities.

If it is in the food, liquor, medicine and other sectors, these sectors themselves are weak cycles. These industries are less affected by the economic cycle and have great development prospects.

Especially in our country, people's income is constantly increasing, and their quality of life is also constantly improving. Domestic demand and exports stimulate my country's economic development, and these low-valuation companies will also usher in a spring.

1. Defang Nano

net profit increased by 847.44% year-on-year, with a low valuation of 0.66, and earnings per share of 11.20

The company has successfully reached and stabilized cooperative relations with many top lithium-ion battery manufacturers and suppliers in my country. At the same time, the company has also continuously carried out technological innovation and product improvement, maintaining close relationships with customers at the technical level and product end.

2. Wanrun New Energy

net profit increased by 251.90% year-on-year, with a low valuation of 0.61, and earnings per share of 8.29

As an excellent high-tech enterprise, the company has been focusing on the development of lithium battery positive electrode material for a long time. Since its establishment, it has seized the development opportunities of the new energy power battery industry and actively optimized the technology and process level. In addition, the core products that the company has mastered are currently moving closer to the energy storage industry, and a few products have been recognized by users.

3. Daquan Energy

net profit increased by 340.81% year-on-year, with a low valuation of 0.19, and earnings per share of 6.12

The company has more than 10 years of development experience in the new energy industry and has been engaged in the development of high-purity polysilicon for a long time. The company combines various advantages with technological innovation. At this stage, it has mastered high-quality high-purity polysilicon with an annual output of up to 100,000 tons.

4. Xinzhoubang

net profit increased by 129.75% year-on-year, with a low valuation of 0.54, and earnings per share of 2.52

in recent years, and has now developed into an internationally renowned professional manufacturer and supplier of solid-state polymer capacitors. The company has also independently developed a core technology, which not only makes up for the gap in my country in this field, but also reaches the world's leading level in performance.

5. Naipu Mining Machine

net profit increased by 156.27% year-on-year, with a low valuation of 0.33, and earnings per share of 3.76

The company continues to promote the large-scale development layout of mining equipment, and the products developed have high technical standards and added value. The company currently has more than 100 kinds of production equipment, and its diverse products can provide customers with effective choices, thereby enhancing the company's industry position in the market.

6, Dangsheng Technology

net profit increased by 104.06% year-on-year, with a low valuation of 0.63, and earnings per share of 3.07

The lithium battery positive electrode material research center mastered by the company is mainly responsible for the manufacturing of high-end automotive power lithium battery positive electrode materials. The core equipment used is all imported overseas, and its technical process and automation have also reached the world's top level.

company continues to expand the domestic and foreign lithium battery market scope with its production capacity advantages, thereby further consolidating the company's market position in this field.