6 Undervalued Stocks with a P/S < 1
6 Undervalued Stocks with a P/S < 1
1/ $Oscar Health, Inc.(OSCR)$ P/S 0.4
"Never waste a good Crisis." Mark Bertolini
As Trump's Big Beautiful Bill creates chaos in the system, Oscar can be the one to use that chaos as a ladder.
"Oscar is a Pirate ship in a sea full of Spanish galleons full of Gold. We are ready to take their business."
They are changing health insurance by combining technology, data, and member-first design to transform how people access and experience healthcare.
Health insurance is a fragmented system that's difficult to navigate, costly to manage, and frustrating for patients. Legacy players are struggling to leverage data or modern platforms to simplify patient journeys and reduce costs.
With OSCR, members gain a seamless digital-first experience. Personalized health guidance, easy appointment scheduling, and 24/7 telemedicine. The platform integrates claims, clinical data, and engagement tools into one ecosystem, enabling more efficient care coordination and better outcomes.
This has positioned Oscar as a leader in tech-driven health insurance, powering innovation outside the old and slow group health insurance model.
2/ $Root, Inc.(ROOT)$ P/S 0.8
$ROOT trades for a P/E of 22, despite growing in one of the least disrupted industries, insurance.
Root are changing auto insurance by using real driving data rather than inaccurate demographic averages, allowing it to price risk more fairly and accurately.
This tech-driven model strongly appeals to younger, mobile-first customers and gives Root a structural advantage as usage-based insurance continues gaining adoption across the industry.
The company has also made clear progress in improving profitability. By tightening underwriting standards and reducing acquisition costs through strategic partnerships with Carvana and Hyundai.
The long-term opportunity remains highly attractive.
The US auto insurance market is massive, and even modest market share gains can drive meaningful revenue expansion. As Root continues refining its pricing models and expanding distribution, its data advantage compounds.
But the company is already looking to expand to new insurance verticals, such as rental, further increasing TAM.
3/ $UnitedHealth(UNH)$ P/S 0.7
As a result of a few scandals, government investigations, leadership assassinations, and industry turmoil, UNH trades for an attractive valuation for a company that has steadily compounded for a decades in one of the most resilient and consistent industries.
The long-term opportunity remains compelling.
US healthcare spending continues to grow faster than GDP, and UNH’s ability to cross-sell services across its platform drives organic growth with limited incremental capital. UNH’s competitive moat remains strong.
With a proven management team, defensive characteristics, and multiple growth levers, UnitedHealth remains a high-quality compounder in a complex but essential market.
I find it likely that the company will recover from the current crisis because the underlying businesses remain structurally strong, diversified, and essential to the US healthcare system.
The company has significant financial resources, scale, and operational redundancy, allowing it to absorb short-term disruptions while continuing to generate strong cash flow. Historically, UNH has navigated regulatory, operational, and reputational shocks and emerged with its competitive position intact.
4/ $High Tide Inc.(HITI)$ P/S 0.6
$HITI is THE fastest-growing cannabis retail and accessories company in Canada that is actively expanding to Germany and looking at ways of licensing their brand in the US.
While many competitors are still focused on traditional, simple dispensary models, High Tide is leveraging e-commerce, private-label products, and Costco-like subscriptions to scale rapidly.
With opportunities in cannabis retail, accessories, e-commerce, and international expansion to Germany and possibly the US, High Tide is positioned for long-term growth as legalization spreads.
As markets in Canada, the US, and globally continue to evolve, High Tide is poised to benefit from increasing consumer adoption and regulatory tailwinds.
The recent reclassification of cannabis in the US is bringing a wave of interest in the sector. High Tide as one highest quality companies in the sector, is well positioned to benefit.
5/ $Golden Matrix Group, Inc.(GMGI)$ P/S 0.6
$GMGI is a $103M gambling small cap that trades for a very affordable valuation largely because of the temporary losses and the higher risk nature of its business.
However, in my view, $GMGI is in a good position to grow in the fast-growing online gaming market.
The company has a B2B gambling business that supplies white-label platforms that allow casinos and sportsbooks to launch and operate, and run online casinos.
But also, GMGI is expanding into the higher-margin B2C consumer gaming segment through online casinos and sportsbooks in emerging markets in Eastern Europe, Africa, and South America.
The global online gaming market still has a long runway, with legalization and digital adoption advancing rapidly. GMGI’s proven technology, regulatory readiness, and scalable model position it to capture meaningful share as these markets mature.
The company has recently expanded in Brazil and plans to expand to New Jersey and Ontario in the future.
6/ $GREGGS(GRG.UK)$ P/S 0.8
Greggs is the UK’s leading food-on-the-go bakery, operating thousands of shops that sell freshly prepared pastries, sandwiches, and hot food at affordable prices. Its dense national footprint, strong brand recognition, and growing digital and delivery presence make it a daily staple for millions of customers.
Despite resilient demand and continued sales growth, Greggs’ valuation reflects near-term margin pressure from wages and input costs. The market appears to be underestimating the durability of its value proposition and its ability to normalise margins as cost inflation eases.
Furthermore, Greggs still has a significant runway to expand its store base in the UK and possibly internationally. As efficiencies from scale and supply chain investment feed through, earnings growth should re-accelerate, making the current valuation attractive for long-term investors.
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