Cheap Uk Stock That Is Undervalued

last updated on

Cheap Uk Stock That Is Undervalued

This Cheap Stock Is Benefiting From The Ai Boom

Those who invested in AI-related stocks a few years back were the ones who earned substantial returns. A classic example of this was Nvidia, which reached new all-time highs & even now continues to set new records.

However, some analysts think there's another stock that is still undervalued. Yes, we are talking about Hill & Smith (HILS), which is secretly benefiting from the AI boom.

Hill &Amp;Amp; Smith Has 17 Different Businesses

Hill & Smith is a very diversified business as it owns up to 17 businesses in different niches. But all of these businesses are designed to serve the infrastructure sector.

Another thing about Hill & Smith is that it makes most of its money from the US, while it is a UK-listed stock. Now, that's a good thing, as the US is spending trillions on the AI infrastructure, and this also benefits Hill & Smith.

In the last 5 years, the profits of Hill & Smith have also doubled, which has sent its share price higher. Especially, the increase in spending on building data centers has helped Hill & Smith immensely.

Hill & Smith is also involved in different sectors like renewables, electricity generation, EV charging stations, logistics centers, and so on. Similarly, the firm also provides infrastructure and components for new data centers.

But despite having such an operational momentum, the forward P/E of Hill & Smith is only 15. So, there's no doubt that Hill & Smith stock is still very undervalued.

In addition, the balance sheet of Hill & Smith is also in very good shape. This means the management has enough funds to even out through down periods.

With the cheap share price and reasonable ratios, there's no doubt that Hill & Smith stock is a very good opportunity. This stock gives you exposure to the AI and a range of other sectors.

So, for those who want a stock that benefits from the AI boom but also has other things going on, then Hill & Smith stock is the best option.

Trending Stories