Bargain Hunt: Global Stocks Trading at Steep Discounts in February 2026
Global equity markets in February 2026 present a paradox of caution and opportunity. With central banks holding interest rates steady and consumer sentiment fluctuating, a clear trend has emerged: large-cap value stocks are consistently outpacing their growth-oriented rivals. Sectors like communication services and energy have led recent gains, but for many investors, the real action lies in identifying fundamentally sound companies trading at a discount to their estimated worth.
Below, we delve into a curated selection from our screening results, highlighting potential opportunities across different regions.
Suzhou Zelgen Biopharmaceuticals Co., Ltd. (SHSE:688266)
Overview: A China-based firm engaged in the research, development, and commercialization of medicines. Market Cap: CN¥23.90 billion.
Operations: Revenue is primarily derived from its pharmaceuticals segment, which generated CN¥742.28 million.
The Opportunity: Trading at CN¥90.5, the stock appears deeply undervalued, sitting approximately 47.6% below its estimated future cash flow value of CN¥172.84. The company is on a high-growth trajectory, with earnings expected to surge 124.86% annually and revenue projected to grow 34.2% per year over the next three years—far exceeding the Chinese market average. Analysts anticipate profitability soon, aligning with a consensus price target suggesting a potential 64.3% upside.
Kioxia Holdings Corporation (TSE:285A)
Overview: A global leader in flash memory and solid-state drive (SSD) technology. Market Cap: ¥11.38 trillion.
Operations: Revenue comes from the development, production, and sale of flash memory and SSDs worldwide.
The Opportunity: Priced at ¥19,530, Kioxia trades at a 10.8% discount to its estimated fair value of ¥21,893. Its earnings are forecast to grow at a robust 34.2% per year, outperforming the Japanese market. While investors should note its significant debt load and recent leadership transition—Hiroo Oota took over as CEO in April 2026—the combination of undervaluation and strong earnings growth presents a compelling case for consideration.
MonotaRO Co., Ltd. (TSE:3064)
Overview: Operates a leading online marketplace for Maintenance, Repair, and Operations (MRO) products serving industrial clients globally. Market Cap: ¥1.06 trillion.
Operations: The Indirect Material Sales Business for factories is its core, generating ¥333.88 billion in revenue.
The Opportunity: At ¥2,210.5, MonotaRO trades 17.4% below its estimated cash flow value of ¥2,674.91. The company recently initiated a share buyback program to boost shareholder returns. With earnings having grown 23.1% last year and forecast to expand 13% annually (beating the Japanese market average), it offers solid growth prospects, even if not the deepest discount in our screen.
Market Voices:
David Chen, Portfolio Manager, Hong Kong: "Zelgen is a classic example of market myopia. The growth narrative in specialized pharma is strong, but short-term volatility in China's markets is creating a disconnect. For patient capital, this is a significant entry point."
Akari Tanaka, Retail Investor, Tokyo: "Kioxia's discount seems modest given the cyclical nature of memory chips and its debt. I'm more intrigued by MonotaRO—its B2B model and buyback signal real confidence from management."
Marcus Thorne, Financial Analyst Blog: "This entire 'value hunt' feels like rearranging deck chairs. With global macro uncertainty this high, a 10% discount isn't a margin of safety—it's a rounding error. These screens often miss the forest for the trees."
Priya Sharma, Independent Advisor, London: "The key is diversification and context. These are three distinct stories across sectors and regions. They shouldn't be seen as a basket but as individual, deep-dive opportunities within a value-focused strategy."
This article is based on historical data and analyst forecasts using an unbiased methodology. It is not intended as financial advice, nor a recommendation to buy or sell any security, and does not consider your individual objectives or financial situation. We strive to provide long-term, fundamental analysis. Note that our analysis may not include the latest company announcements or qualitative factors. Simply Wall St has no position in the stocks mentioned.
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