3 undervalued shares to buy right now

I think there are some good opportunities to buy stocks trading below their intrinsic value right now. Rising interest rates and the prospect of a recession are pushing investors into dividend stocks.

The most valuable stocks, are the ones left behind. With the stock market looking the other way, I’m looking at some of my favorites trading at low prices.

Move right

Move right (LSE: RMV) has been one of the worst-performing FTSE 100 shares in the past year. While the index advanced 14%, the stock fell 13%.

As far as I can tell, though, that has almost nothing to do with the underlying business. The stock may have been expensive a year ago, but now it looks undervalued.

Revenue in 2022 increased by 9%, and earnings per share increased by 10%. And the business maintains its dominant market position, with the amount of time on the platform remaining high.

At best, these companies show that they are largely immune to macroeconomic threats. Neither rising inflation, nor a faltering property market can slow down the business.

A change in CEO brings risks. But with no debt and strong cash conversion metrics, I think this is one of the best FTSE 100 stocks to buy and hold for the long term.

JD Wetherspoon

At FTSE 250 up about 5% over the last 12 months. But it is not thanks to JD Wetherspoon (LSE: JDW), whose shares are down 23% and look like a bargain to me.

The amount of debt on the company’s balance sheet is a risk. But I think the market has significantly overestimated this risk, causing the stock price to be very low.

Most of the debt is fixed until 2031 at 1.24%, so there will be some time before it becomes a problem. And the company has taken advantage of the difficult times for the industry to secure its position.

Wetherspoon has invested heavily in pubs. It has also been used to keep prices low for customers, something that I think will prove important in the long term.

Lower prices now give the business scope to raise in the future while still being cheaper than competitors. I think this will generate long-term profits for the company.

Alphabet

Shares in Google’s parent company Alphabet (NASDAQ:GOOG) has fallen about 25% over the past year. That creates the kind of buying opportunity that doesn’t happen very often.

There are some risks with stocks today. The emergence of ChatGPT as a threat to Google Search is one of the latest antitrust lawsuits aimed at Google Maps.

I don’t see any of this as a threat to Alphabet’s long-term growth, though. Even with PR mistakes, I don’t think ChatGPT is superior to Alphabet’s own AI search offering.

Additionally, antitrust lawsuits come and go against big tech companies. I suspect that any fines that will be imposed will not be significant in the grand scheme of things.

Meanwhile, analysts expect 21% annual growth in earnings every year until 2027. If that happens, then the stock is cheap with a price-to-earnings (P/E) ratio of 20.