Top undervalued stocks for traders to watch in Singapore

What are undervalued stocks?

Undervalued stocks are shares with a price below their real or fair value. Sometimes stocks are undervalued due to negative press, market crashes or how the company is viewed by the public.

Undervalued stocks can make for good trading opportunities based on the assumption that markets will always correct themselves to reflect a fair value. Long trades are most common with undervalued stocks, but it’s important to take adequate risk management steps when trading them.

Undervalued shares are different to overvalued stocks, which are those that trade above their real or fair value. They can be overvalued for a number of reasons, such as buyers suddenly purchasing stock based on emotions or a decline in the company’s finances.

What are the benefits of undervalued stocks?

The main benefit of undervalued stocks is that they create opportunities for investors and traders to go long, as they’re more likely to increase in value over time. This is because of the theory that a market will eventually ‘right’ itself and bring an undervalued share up to its fair or real value.

However, downward movements can also happen on undervalued shares, so take precautions to manage your risk when trading them.

10 undervalued stocks to watch in Singapore

These 10 stocks were chosen for their cash flow and intrinsic values, or on their current relative strength index (RSI) score. If an RSI is below 30, it often indicates that a stock is undervalued.

All figures are correct at the time of writing.

1. Nanofilm Technologies International

Nanofilm Technologies International Ltd provides vacuum coating solutions and nanofabrication for a range of industries, including life sciences, consumer electronics, optics, automotive, semiconductor and energy.¹

Based on its intrinsic value, analysts place it as around 37% discounted/undervalued.²

Its current share price is S$0,935.²

2. Seatrium

Seatrium delivers maritime and new energy engineering solutions, including oil and gas newbuilds and conversions, offshore renewables, specialised shipbuilding, repairs and upgrades, and technology and new product development.³

This undervalued stock is on our list based on its intrinsic value and is discounted by around 43%.²

Its current share price is S$1,50.²

3. StarHub

StarHub Ltd is in the telecom and communications services industry. It’s one of the three primary telecommunications businesses in Singapore and offers mobile, broadband, fixed voice and pay television.

We chose this as one of the best stocks to watch now in Singapore due to its intrinsic value, which has grown since January 2024, when it was considered to be an undervalued stock by analysts.⁴

Its current share price is S$1,26.⁵

4. Frasers Logistics & Commercial Trust

Frasers Logistics & Industrial Trust operates as a real estate and investment company. Its portfolio is made up of 112 industrial and commercial properties, worth around S$6.9 billion. These are situated in Australia, Germany, Singapore, the United Kingdom and the Netherlands. It used to be known as Frasers Logistics & Industrial Trust, prior to a merger with Frasers Commercial Trust.⁶

Its current discount is estimated to be approximately 40% and its share price is S$1.²

5. Digital Core REIT

Digital Core REIT is, as the name suggests, an investment trust that has a diverse portfolio of income-producing real estate assets located globally, which are mostly used as data centres.⁷

It’s undervalued by an estimated 44% due to its intrinsic value.²

Its share price is currently at $0,625.²

6. Winking Studios

Winking Studios is an art outsourcing and game development company and is headquartered in Singapore. It’s one of the biggest game development studios globally and has over 20 years’ experience in the video game industry.⁸

Analysts place it as being undervalued by around 43%.²

Its current share price is S$0,29.²

7. Hongkong Land Holdings

Hongkong Land Holdings Ltd was founded in 1988 and builds developments and properties across Hong Kong, Chinese Mainland and Southeast Asia. It owns and manages more than 850,000 sqm of office space and luxury retail assets.⁹

It’s currently undervalued by approximately 42% and its share price is $3,35.²

8. 17LIVE Group

17LIVE Group operates a live streaming platform and has over 550,000 global monthly active users and more than 87,000 contract streamers. Its App Store app is accessible in 133 regions, while the Google Play app is available in 137.¹⁰

Its current share price is S$0,875 and it’s estimated to be discounted by around 43%.²

9. Singapore Technologies Engineering

Singapore Technologies Engineering Ltd operates in the aerospace, smart city, marine, defence, public security and digital tech industries. It’s a global technology, defence and engineering business. It has a worldwide network of subsidiaries in Asia, Europe, the Middle East and the US.¹¹

Analysts place it at around a 40% discount.²

Its share price is currently S$4,42.²

10. The Place Holdings

The Place Holdings Limited is an investment company focused on media and event management, property development, corporate functions, cash and cash equivalents. It was founded in 1988 and is based in Singapore.

We selected this share based on its RSI, which is 29.15, putting it in oversold territory and therefore making it a possible undervalued stock in Singapore.

Its current share price is S$0,003.¹²

Find out more about undervalued stocks

How to trade undervalued stocks in Singapore with us

1. Create an account or log in
2. Find an undervalued stock opportunity
3. Click ‘buy’ to go long or ‘sell’ to short
4. Set your position size
5. Take steps to manage your risk
6. Open and monitor your position

¹ NTI Nanofilm, 2024
² Yahoo Finance, 2024
³ Seatrium, 2024
⁴ Yahoo Finance, 2024
⁵ Morningstar, 2024
⁶ Frasers Property, 2024
⁷ Digital Core REIT, 2024
⁸ Winking Works, 2024
⁹ HK Land, 2024
¹⁰ 17LIVE, 2024
¹¹ ST Engineering, 2024
¹² Trading View, 2024