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The following is a list of the most undervalued stocks reaching new highs, when comparing the current price against the average analyst target price (used as a proxy for fair value).

Yes, there are many limitations to this approach - analyst ratings are notoriously inaccurate. But the goal here is to give you a starting point for your own analysis.

All of these stocks are approaching their 52-week highs, suggesting that these stocks have some upward momentum. Analysts seem to think there's more upside to these names - what do you think?

We wrote about this exact same screen back on August 19, 2010. Since then, 9 out of 14 stocks mentioned in that article outperformed the S&P 500. A full breakdown of this screen's recent performance can be accessed here.

Target price data sourced from Finviz. Full analysis below.

click for expanded image

The list has been sorted by discount to analyst target price.

1. Libbey Inc. (LBY): Housewares & Accessories Industry. Market cap of $412.22M. The stock is -1.31% below its 52-week high. Current price at $15.05 vs. analyst target price of $20.67 (implies a discount of -27.19%). The stock has gained 282.95% over the last year.

2. Reed Elsevier NV (ENL): Publishing Industry. Market cap of $9.81B. The stock is -1.03% below its 52-week high. Current price at $26.83 vs. analyst target price of $32.10 (implies a discount of -16.42%). The stock has gained 20.1% over the last year.

3. BHP Billiton plc (BBL): Industrial Metals & Minerals Industry. Market cap of $195.5B. The stock is -0.99% below its 52-week high. Current price at $70.27 vs. analyst target price of $82.27 (implies a discount of -14.59%). The stock has gained 20.61% over the last year.

4. Steven Madden, Ltd. (SHOO): Apparel Footwear & Accessories Industry. Market cap of $1.21B. The stock is -2.68% below its 52-week high. Current price at $43.65 vs. analyst target price of $50.6 (implies a discount of -13.74%). The stock has gained 68.79% over the last year.

5. Coach Inc. (COH): Apparel Footwear & Accessories Industry. Market cap of $13.3B. The stock is -0.49% below its 52-week high. Current price at $44.73 vs. analyst target price of $49.53 (implies a discount of -9.69%). The stock has gained 30.37% over the last year.

6. Waters Corp. (WAT): Scientific & Technical Instruments Industry. Market cap of $6.63B. The stock is -2.33% below its 52-week high. Current price at $72.06 vs. analyst target price of $79.29 (implies a discount of -9.12%). The stock has gained 23.67% over the last year.

7. Tim Hortons Inc. (THI): Restaurants Industry. Market cap of $6.44B. The stock is -1.73% below its 52-week high. Current price at $37.02 vs. analyst target price of $40.50 (implies a discount of -8.59%). The stock has gained 27.3% over the last year.

8. Polaris Industries, Inc. (PII): Recreational Vehicles Industry. Market cap of $2.26B. The stock is -0.09% below its 52-week high. Current price at $67.94 vs. analyst target price of $73.15 (implies a discount of -7.12%). The stock has gained 43.97% over the last year.

9. Herbalife Ltd. (HLF): Drug Related Products Industry. Market cap of $3.86B. The stock is -1.75% below its 52-week high. Current price at $65.17 vs. analyst target price of $69.50 (implies a discount of -6.23%). The stock has gained 78.25% over the last year.

10. Diamond Management & Technology Consultants, Inc. (DTPI): Management Services Industry. Market cap of $342.35M. The stock is -0.48% below its 52-week high. Current price at $12.49 vs. analyst target price of $13.25 (implies a discount of -5.74%). The stock has gained 86.42% over the last year.

11. Dollar Tree, Inc. (DLTR): Discount, Variety Stores Industry. Market cap of $6.36B. The stock is -1.73% below its 52-week high. Current price at $50.08 vs. analyst target price of $53.07 (implies a discount of -5.63%). The stock has gained 54.09% over the last year.

12. Freeport-McMoRan Copper & Gold Inc. (FCX): Copper Industry. Market cap of $46.13B. The stock is -2.28% below its 52-week high. Current price at $98.05 vs. analyst target price of $103.36 (implies a discount of -5.14%). The stock has gained 30.61% over the last year.

13. Dionex Corp. (DNEX): Scientific & Technical Instruments Industry. Market cap of $1.53B. The stock is -2.29% below its 52-week high. Current price at $87.37 vs. analyst target price of $91.75 (implies a discount of -4.77%). The stock has gained 29.76% over the last year.

14. Check Point Software Technologies Ltd. (CHKP): Security Software & Services Industry. Market cap of $9.58B. The stock is -1.78% below its 52-week high. Current price at $39.27 vs. analyst target price of $41.15 (implies a discount of -4.57%). The stock has gained 32.27% over the last year.

Disclosure: No positions

Source: 14 Undervalued Stocks Approaching 52-Week Highs