Three Undervalued Stocks Under $15 Worth Your Attention

Finding quality companies trading below $15 can be tricky—especially when figuring out if the momentum will hold or if you’re catching a falling knife. But right now, there’s an interesting cohort of beaten-down stocks worth deeper digging. Here are three plays that caught our eye, all priced to make a meaningful move in 2024-2025, and conveniently totaling around $15 combined.

The Turkish E-Commerce Dark Horse: HEPS

D-Market Electronic Services & Trading (HEPS) operates Hepsiburada, Turkey’s leading e-commerce platform. At $3.09, it’s a compelling value proposition. The numbers tell an interesting story: Q1 2024 revenue hit 11.31 billion Turkish lira ($340 million), up 45% year-over-year, while the company managed to flip positive free cash flow to 1.03 billion Turkish lira ($31.4 million) despite a net loss.

The trajectory is what matters here. Full-year 2023 revenue reached 35.6 billion Turkish lira ($1.09 billion)—34% growth—while operating losses shrank 86% compared to 2022. The company now boasts 12.1 million active customers and has become Turkey’s most recommended e-commerce brand by NPS metrics.

What’s compelling is the weighted alpha of 117.26, which exceeds its 52-week gain of 77.6%—suggesting the rally has legs. After jumping 44% in just the past month following strong Q1 results in mid-June, HEPS is positioned to reach profitability by late 2024 or early 2025. Is it the Turkish MercadoLibre? Probably too bold to say, but the asymmetric risk-reward is interesting.

South America’s Protein Play: BRF

BRF ($4.14) is basically the dominant protein processor of South America—think Tyson Foods, but with a stronger international footprint and dairy operations. The company derives 49% of revenue domestically in Brazil, 47% internationally, and 4% from other ventures.

Recent momentum has been explosive: up 62% in six months. Q1 2024 adjusted EBITDA of 2.12 billion Brazilian real ($388 million) represented a 3.5x surge versus Q1 2023. This turnaround accelerated after Marfrig Global Foods (Brazil’s other meat giant) took 50.06% ownership in late December 2023, building on an initial 24.2% stake acquired in May 2021.

The real catalyst? Merger talks between the two companies could create a world-class protein powerhouse. Under current terms, BRF would own 85% of the combined entity with Marfrig shareholders holding 15%. That optionality, combined with legendary brands like Perdigão (90 years) and Sadia (80 years), has attracted institutional attention. Currently ranked 54th on the Top 100 momentum list, BRF is worth monitoring.

The Fresh Food Disruptor: MAMA

Mama’s Creations (MAMA) rounds out the trio at $7.44—bringing the total to $14.67, right at our target. With a $277 million market cap, it’s the smallest of the group but arguably the most dynamic.

The company manufactures fresh deli prepared foods distributed across 8,400 U.S. retail locations (grocery, mass, club, convenience). Its portfolio spans MamaMancini’s, Creative Salads, and The Olive Branch. Founded in 2009 by two Dans (Dougherty and Mancini) using grandmother Anna’s recipes, the business rebranded to Mama’s Creations in August 2023 to signal broader ambitions.

Trailing 12-month revenue hit $110 million with an 11% adjusted EBITDA margin. The weighted alpha of 118.95 exceeds the 52-week gain of 95.3%—again, a sign momentum is accelerating. CEO Adam Michaels (brought on in September 2022 from Mondelez International where he headed commercial strategy) has signaled expansion through acquisitions. The setup resembles an earlier-stage J&J Snack Foods play with significant runway ahead.

The Bottom Line

All three stocks trade under $15 and share common threads: strong recent momentum, improving profitability profiles, and catalysts pointing to 2024-2025 upside. They’re not risk-free, but the risk-reward skews favorably for patient capital.