What sector to invest in now? - 3 undervalued stocks from an undervalued sector

What sector to invest in now and at the start of 2021? That’s a question that many of us ask ourselves in preparation for the new year. Let me therefore inspire you a bit, because today I will share with you 3 undervalued stocks from a sector which I find undervalued.

I will explain to you why I think it is an undervalued sector and I will provide you a high-level analysis of the 3 stocks.

The video includes:
👉 A brief introduction to the Cyclically Adjusted Price to Earnings (CAPE) ratio also known as the Shiller ratio
👉 A brief look at which sector is undervalued
👉 A look into the metrics of 3 different undervalued stocks.
- 10 year dividend history
- Payout Ratios
- 5 Year revenue, net profit and fund from operations (FFO) development
- My favorite metrics, i.e. ROIC more than WACC, Chowder Rule, Return on Equity
👉 A fair value estimate based on a slightly modified Discounted Cash Flow template from Sven Carlin.

Having said that, I hope you enjoy this video and that you have some additional inspiration in what to invest now

Feel free to subscribe so that you won’t miss out on any future video. It will also support me in growing this channel.

Yours Truly,

European Dividend Growth Investor

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[EuropeanDGI]

What is your favorite sector to invest in right now? Do you agree with the 3 stock picks? Let me know in the comments below 👇

[Lluix]

Dear friend, very good video and ideas.

Thanks for share and hapoy new year!!

[delama]

Nice video! I took a position in NN group myself, they strive for a progressive dividend policy and buy back there shares quite agressively. Even in times of headwinds they will be able to at least maintain their dividend👍😃. Besides insuarance companies, do you see other oppurtunities in the energy sector or consumer defensive? I have been looking at Procter and Gamble, Unilever, Danone and Total for instance

[juanjosepavliksalles]

Great content. These companies must have had a very low risk year with all the lockdowns, so chances are they didn't have to give too much many away, right?

[Piotr-hvvr]

Cool analysis, where to find your one pagers ? :) I am also bullish on insurance companies and see a potential in increasing number of customers resulting from COVID. Therefore my no 1 holding is Polish company PZU, largest insurer (building also healthcare) in CEE and with initial confirmation of repaying suspended dividend which my come to 10% :)

[glennpuystjens]

why no MUV2???? but how do you deal with double tax on dividend german is way to high....