Undervalued Stocks Investing / Trading

Hello you wonderful and kind people that make up this forum. I sincerely hope you are doing well today and hope your day goes well.

I kindly wanted to ask please once a stock has been analysed as undervalued, say it is massively undervalued by 40%, would this protect you for instance against volatility. Say on a recent earnings release sales were slightly down and growth was slowing, would this have a less impact on the share price volatility please, as it is already undervalued? For instance when Zoom share price grew rapidly in lockdown 2020 as everyone was having video calls, the share price grew rapidly and was massively overvalued. Then suddenly when growth started slowing the share price dropped significantly. I kindly wanted to ask please if buying undervalued stocks protects you from these massive share price drops, i understand there is still risk but wanted to protect myself from downside losses as much as possible. If anyone kindly had anyone opinion on this i would be forever grateful, your support means the world to me and you are all amazing people here.

Hope you have a wonderful rest of the weekend and hope you achieve massive success with your investing. More importantly, take care of yourself and all the very best to you.

If a stock is undervalued, it’ll go up. But how do you know it’s undervalued? It’s impossible to know for sure and protect yourself against a bad result announcement.

1 Like

exactly - the key question

i can tell this reliably only with hindsight - the same point chesterjohn makes above

if you have discovered a way of telling this in advance, then the whole game is surely pretty easy for you, in the long term? :wink: