Image Source: Getty Images
Timing the stock market right is essentially an impossible task. Furthermore, it is rarely outdone by the reliable approach of investing patiently and consistently in all market conditions.
World-renowned investor Warren Buffett makes no attempt to forecast the market, instead focusing his efforts on finding undervalued securities. In doing so, the Oracle of Omaha has consistently benefited from significant returns.
With that in mind, here’s my look at an undervalued stock that I think could be one of the best and most underrated stocks today.
If I had some extra cash lying around, I would buy a few stocks for my portfolio today and hold them for the long term.
Company providing unique international exposure
bank of georgia (LSE:BGEO) is a UK-based, Georgia-focused banking business. The group comprises retail banking and payment services, corporate and investment banking and wealth management operations.
JSC Bank of Georgia is the main unit of the company. It offers a wide range of banking products and services to its retail and corporate customers.
The company is an important bank in Georgia. It serves over 2.6 million customers through one of the largest service delivery network.
As such, Bank of Georgia shares present an exciting opportunity for me to diversify my exposure away from the UK and increase my exposure to a rapidly growing economy based outside Western Europe.
According to the National Statistics Service in Tbilisi, Georgia’s real GDP will grow by 10.1% in 2022 compared to the previous year.
a strong financial performance
Operating in a fast-growing economy, the bank’s recent financial performance has been impressive.
Last month, the owners reported a significant increase in first quarter operating income. Simultaneously, strong bottom-line growth and strong asset quality were highlighted.
Total operating income grew by 42.4% to 563.5 million Georgian Lari, with growth driven by strong performance across key revenue lines. In addition, net interest income increased by 37% and net fee and commission income increased by 90.9%.
However, it was not all smooth sailing. Analysts said profit before income tax expense was flat quarter-on-quarter, but income tax expense nearly doubled in the quarter due to the tax rate change announced in December.
As a result, the bank’s profit for the first quarter actually decreased compared to the previous quarter.
Ongoing Risks and Uncertainties
Although Georgia is an exciting emerging economy, unfortunately its location means that regional tensions and economic instability are always at risk of affecting its business environment.
This particular risk has become acute given the current Russia-Ukraine war, and Bank of Georgia is not immune to its effects.
Nevertheless, I am confident that as Georgia’s role in the South Caucasus region continues to strengthen, the group will be able to meet its target of achieving 20%+ return on average equity and nearly 10% loan book growth Will be in good condition. in the medium term.
Now if only I had some extra cash!
Post: A once-in-a-lifetime opportunity to own one of the best dividend-paying stocks on the market? First appeared in The Motley Fool UK.
read more
Matthew Dumigan has no position in any of the stocks mentioned. The Motley Fool UK has no position in any of the stocks mentioned. The views expressed on the companies mentioned in this article are those of the author and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a wide variety of insights makes us better investors.
Motley Fool UK 2023
Source
