Undervalued companies should be a cornerstone of any investment portfolio. They provide safety, especially if you choose a stock that turns out to be unprofitable due to minimized realized losses. They also allow investors to buy into a company at a favorable rate, and if the company performs well over time, investors who prioritize valuation are highly profitable. Strong fundamentals help to support a stock’s credibility and valuation. Suppose a company is trading at a fair valuation but may be experiencin ...