Value investing is a proven strategy many successful investors have used over the decades to grow their wealth. The investing strategy involves conducting your due diligence to identify and invest in the stock of publicly traded companies trading for lower than their intrinsic value.
Investing at the right time in these undervalued stocks and holding onto the shares for the long run can provide stellar shareholder returns as the share prices rise to fairly reflect their intrinsic value. Stock market investing is inherently risky, especially during volatile market environments.
Harsh market environments present an ideal opportunity for value-seeking investors to find stocks trading for substantial discounts from their intrinsic value. Today, I will discuss two such stocks that you can keep on your radar for this purpose.
Suncor Energy
Suncor Energy Inc. (TSX: SU)(NYSE: SU) is a $56.8 billion market capitalization Canadian energy company headquartered in Calgary. The company boasts several business verticals, with upstream, midstream, and downstream operations in the energy industry that give it an edge over its peers. Declining oil prices have impacted energy stocks throughout the industry, and it has not spared Suncor Energy stock.
At writing, Suncor Energy stock trades for $39.46 per share and boasts a 4.76% dividend yield. It is down by 26.4% from its 52-week high. Oil prices would have to decline to lower than US$35 per barrel for the company to go down to the break-even point. WTI Crude Oil currently trades for US$89 per barrel, putting Suncor stock in a strong position to deliver attractive returns in the coming quarters.
WELL Health Technologies
WELL Health Technologies Corp. (TSX: WELL)(NYSE: WELL) is an $819.3 million market capitalization multichannel digital health technology company and Canada’s largest outpatient health clinic owner and operator.
Headquartered in Vancouver, the telehealth giant saw substantial growth during the pandemic. Despite the tech sector meltdown in the post-pandemic era, WELL Health Technologies is growing its financials at a steady rate.
The company expects to exceed $130 million in revenue for its second quarter in fiscal 2022 due to strong growth in its omnichannel patient visits. The company has accelerated its acquisitions, capitalizing on its strong pandemic-era momentum to bolster its growth potential. At writing, WELL Health Technologies stock trades for $3.67 per share.
Fortune Business Insights predicts the telehealth industry to grow at a compound annual growth rate (CAGR) of 32.1% until 2028. Down by 55.51% from its 52-week high, WELL looks attractively priced given the potential it holds to deliver long-term returns.
Foolish takeaway
A word of warning: Volatile market environments make stock market investing riskier than usual. If you are a risk-averse investor worried about short-term returns, you should know that it is possible for even the highest-quality stocks to decline on the stock market.
Investors with a long investment horizon and the discipline to remain invested despite short-term volatility can consider investing in Suncor Energy and WELL Health Technologies stock for the companies’ ability to deliver stellar long-term value to shareholders.
