5 Attractive Undervalued Companies To Consider Today

By Delian Naydenov In this article I will discuss five companies which have attractive valuations and current prices that offer a good entry point. The first two companies pay generous income to their shareholders in the form of dividends and the next three offer growth but still have well-established and proven business models. Most importantly, all five companies are undervalued relative to their peers and barring any “black swan” event are good buying opportunities. Marathon Oil (MRO) traded at around $32 per share at the time of this writing, has 703.8 million shares outstanding for a market capitalization of $22.7 billion and a dividend yield of 1.9% per year. The company has promising exploration projects for oil, gas and oil sands in the U.S. and around the world. In June of 2011, MRO spun-off its downstream operations into a separate company (for more information on the spin-off click here) and is now a pure play exploration and production company. With the demand and price of oil expected to increase, Marathon Oil is well positioned to improve its sales and margins. Currently, the shares are undervalued due to the reduced ability to accurately estimate its future earnings power on a stand…