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fallen angels stocks

10+ Stocks That Are Undervalued

portfolio strategy Jun 08, 2022

In the world of finance, a “Fallen Angel” can be a company who once had a good reputation. But for whatever reason, no longer does.

If you’ve ever heard someone say “I wouldn’t touch that stock with a ten-foot pole,” they were probably talking about a Fallen Angel.

The trick is in finding the ones that deserve this reputation, and the ones that don’t. Some of these “Fallen Angel” companies might still have redeeming qualities.

Let’s say you’re a contrarian investor. You want to go against the grain. In that case, a Fallen Angel is attractive, provided they have the redeeming qualities you’re seeking.

Long story short? A Fallen Angel is a solid company that was once well-liked, and highly-valued—but is now down in the dumps.

But everyone loves a comeback story, right? If you fancy yourself, someone who can find deep value where no one else sees it, Fallen Angels are naturally attractive.

In practice, looking for Fallen Angels is similar to the Deep Value approach. But we want to be sure. We want to assign numbers to it. We want a quantitative approach.

TL:DR?

We’re on the hunt for Fallen Angels: large companies that have fallen far and become extremely cheap, but have grown in earnings per share over the past 1-5 years and have massive upside ahead.

  • But How Do We Find Fallen Angels In Stocks?

  • Which Are The Best Fallen Angels Stocks?

  • When Will They Recover?