Some stocks trade at cheap valuations for good reason. For others, temporary discounts based on misunderstandings and short-term issues can set shrewd investors up for big returns as the real story plays out and the discounts fall away.
We asked a panel of Foolish investors to share their best examples of misunderstood value plays in this market. Read on to see why they selected Medical Properties Trust (NYSE: MPW), KB Home (NYSE: KBH), and NeoPhotonics (NYSE: NPTN).