A group called Benzinga wrote an article about some computer chip companies that make things inside other devices, like phones and computers. They looked at how much money these companies make compared to their price in the stock market. The goal was to find out which company is not priced very high compared to its earnings or sales, meaning it could be a good deal for someone who wants to buy their shares. Read from source...
1. The title of the article is misleading and sensationalist. It claims to find the most undervalued MANGO stock right now, but it does not provide a clear definition or criterion for what constitutes "undervalued". This leaves readers with an ambiguous and subjective impression of the term and its implications for investors.
2. The article compares different semiconductor companies based on their percentage returns in the past, which is not an appropriate way to evaluate their valuations. Percentage returns do not account for the starting point or the size of the company, and they can be influenced by external factors that are unrelated to the intrinsic value of the stock, such as market trends, news, sentiment, etc. A more accurate and consistent method would be to use absolute or relative multiples, such as P/E or EV/Sales ratios, which compare the price or enterprise value of a company with its earnings or sales figures, respectively.
3. The article uses outdated or irrelevant data for some of the MANGO stocks. For example, it mentions that GlobalFoundries and Onsemi had declines of -22.07% and -7.89%, respectively, in 2021, but it does not specify the time period or source of these figures. It also cites NVIDIA's P/E ratio as of June 30, 2021, which is almost six months old at the time of writing. A more current and reliable data would enhance the credibility and usefulness of the article for readers who want to make informed decisions based on accurate information.
4. The article does not provide any analysis or explanation for why some MANGO stocks are undervalued or overvalued, other than listing their P/E and EV/Sales ratios. It does not compare them with their historical or industry averages, nor does it consider their growth prospects, competitive advantages, risks, or other factors that could affect their valuations. The article lacks depth and insight, and it leaves readers wondering how to interpret the numbers and what they mean for their investment strategies.
5. The article ends with a vague and generic conclusion that suggests investors should do more research before making any decisions. This is not very helpful or informative, as most readers would expect some guidance or recommendations from an article that claims to find the most undervalued MANGO stock right now. A better ending would be to highlight one or two stocks that have the best combination of valuation and potential, and explain why they are attractive options for investors who want to benefit from the semiconductor sector.