🔍10 Quality Stocks That Look a Steal Right Now
We've identified 10 stocks with strong fundamentals, trading at attractive valuations.
As long-term investors, we believe in the power of buying great companies at fair prices. One of our favorite quotes comes from Warren Buffett:
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
With that in mind, we went looking for companies with strong fundamentals that are currently undervalued or reasonably priced. Recently, many quality stocks have dropped sharply after Trump announced the new import tariffs. This has made some of these companies more attractive for long-term investors.
To make it on our list, we used a strict set of filters. Each company had to meet all of the following criteria:
Market cap of at least $5 billion
Trading Region United States or Europe
Profitable, with gross margins of 40% or higher
Free Cash Flow positive and a positive ROIC (Return on Invested Capital)
Expected to grow revenue and earnings by at least 10% per year on average over the next 3 years
PEG ratio under 1, indicating that earnings growth is higher than price to earnings ratio
With at least 40% upside to the average analyst price target
No stock comes with a guarantee, but these names offer an interesting mix of quality and value and are worth a closer look.
Find below 10 undervalued quality stocks that fit the criteria, sorted by PEG ratio from highest to lowest:
10. Monolithic Power Systems (MPWR)
Sector: Semiconductors / Power Management
Description: Monolithic Power Systems designs and manufactures energy-efficient power solutions, such as integrated circuits used in cloud computing, industrial applications, automotive systems, and consumer electronics.
Price: $455.19
Avg. Analyst Target: $803.45 (76% upside)
PEG (NTM): 0.98
9. Workday (WDAY)
Sector: Software / Cloud Computing
Description: Workday provides enterprise cloud applications for finance and human resources. Its software helps large organizations manage payroll, employee data, budgeting, and planning in real-time.
Price: $210.47
Avg. Analyst Target: $311.19 (48% upside)
PEG (NTM): 0.95
8. BE Semiconductor (BESI.AS)
Sector: Semiconductors
Description: Based in the Netherlands, BE Semiconductor (BESI) produces advanced packaging equipment used in the assembly of microchips. It serves the global semiconductor and electronics industry, including automotive and consumer electronics.
Price: €85.84
Avg. Analyst Target: €141.26 (64% upside)
PEG (NTM): 0.89
7. Onto Innovation (ONTO)
Sector: Semiconductors
Description: Onto Innovation provides metrology and inspection tools for the semiconductor industry. Its systems are used in the manufacturing of advanced chips, helping ensure quality and precision in production processes.
Price: $105.60
Avg. Analyst Target: $235 (123% upside)
PEG (NTM): 0.83
6. Birckenstock (BIRK)
Sector: Consumer / Footwear
Description: Birkenstock is a well-known German brand that manufactures orthopedic-inspired sandals and shoes. Known for comfort and craftsmanship, the company has expanded globally and become a fashion staple.
Price: $42.03
Avg. Analyst Target: $72.37 (72% upside)
PEG (NTM): 0.76
Discover the top five most undervalued quality stocks below — exclusively available to our paid members: