Investment legend Warren Buffett once wisely stated: "Price is what you pay, but value is what you get."

Locating undervalued stocks with genuine growth potential is always tough. Don't believe us? Ask value investors.

Here are two-such gems trading well below their intrinsic value. 

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Berry Plastics Group (BERY) - Get Report

Evansville, Indiana-headquartered Berry Plastics is one of the leading providers of value-added plastic consumer packaging and engineered materials. Its rivals include companies like AptarGroup.

Berry is scheduled to deliver a massive 20.9% annual earnings growth for the next five years, twice the rate of the packaging and containers industry.

Peers like AptarGroup (9.26%), Crown Holdings (8.94%) and WestRock Company (9.08%) aren't even looking at double-digit growth.

In fact, investment fund Jana Partners recently invested, according to its latest 13F filing. Third quarter results have also reflected Berry's strong growth trajectory.

Health, hygiene, and specialties net sales rocketed 365% to $567 million. Overall, operating margin rates improved by a sharp 110 bps to 10.9%. Operating EBITDA also improved 44.3% to $316 million. The company issued a guidance for fiscal year 2016 for adjusted free cash flow at $475 million.

Trading at shockingly cheap price-to-earnings growth (PEG) ratio of 0.89, Berry Plastic is at a roughly 40% discount to the industry standard. This stock is a solid value-creator and income driver.

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Dow Chemical is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. See how Cramer rates the stock here. Want to be alerted before Cramer buys or sells DOW? Learn more now.

Dow Chemical (DOW) - Get Report

Dow Chemical is a giant in the chemicals space. Over the years, Dow has evolved from a one-product enterprise into an innovative science and technology entity. Its massive scale and powerful intellectual property portfolio are standouts.

We believe it will only get better thanks to its proposed merger with DuPont (DD) - Get Report . Shareholders have already given approval.

The Dow-DuPont amalgam would be hugely cash flow positive, as Dow's capital expenditures would be sharply lower post-integration. Significant capacity expansions and focused efforts to achieve cost reduction via consolidation will also play a big role.

Pre-merger, second quarter earnings have beaten analyst estimates -- Dow has now delivered its 15th straight quarter of earnings and margin growth.

The stock, though, hasn't moved much this year, due to overhangs of the merger. Its shares are up just 4.5%, under-performing peers like PolyOne (up 7.18%) and BASF SE (up 7.8%).

Dow's solid economic moat, strong margins and financials are great positives. Further, its market-aligned businesses for vertical integration and the successful asset-light approach for cost competitive solutions has held it rock-steady for years now.

The 13.48-times forward P/E valuation is just too low.

Dow's track record of delivering value to its shareholders and its tremendous growth potential makes Dow Chemical a compelling investment opportunity.

Additionally, the stock carries a dividend yield of 3.42% and its less than 53% payout ratio points to the hefty opportunity to gain almost risk-free and growing steady incomes every year.

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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.