Some stocks have been trading far below their intrinsic value and doing so well before the current correction. These stocks have been pushed even lower recently. There is now a wide gap between market price and intrinsic worth.
If you’re willing to look beyond the short-term volatility, these stocks offer solid upside potential and minimal downside risk. Historically, undervalued stocks have delivered outsized returns when the market corrects its mispricing. These returns are even better if you buy stocks with underlying businesses that have staying power.
This post originally appeared at Money Morning.