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The following is a list of undervalued growth stocks, when comparing the current price to the average analyst target price, used as a proxy for fair value. All of the companies mentioned below have projected EPS growth rates above 20%.

Yes, there are many limitations to to this method of finding undervalued stocks, but the goal here is to give you a starting point for your own analysis. Full details below.

Target price and EPS projections sourced from Finviz.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.


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

1. Mitsui & Co. Ltd. (OTCPK:MITSY): Conglomerates Industry. Market cap of $30.76B. Current price at $337.22 vs. average analyst target price at $498.79 (implies a discount of -32.39%). EPS projected to grow by 40.9% over the next five years. Short float at 0%, which implies a short ratio of 0.62 days. The stock has gained 10.11% over the last year.

2. Randgold Resources Ltd. (NASDAQ:GOLD):
Gold Industry. Market cap of $7.11B. Current price at $78.17 vs. average analyst target price at $111.11 (implies a discount of -29.65%). EPS projected to grow by 61.9% over the next five years. Short float at 0.77%, which implies a short ratio of 0.86 days. The stock has lost -5.03% over the last year.

3. Koninklijke Philips Electronics NV (NYSE:PHG): Electronic Equipment Industry. Market cap of $29.1B. Current price at $30.76 vs. average analyst target price at $41.45 (implies a discount of -25.79%). EPS projected to grow by 23.5% over the next five years. Short float at 0.05%, which implies a short ratio of 0.49 days. The stock has gained 4.41% over the last year.

4. Goldcorp Inc. (NYSE:GG):
Gold Industry. Market cap of $32.49B. Current price at $44.12 vs. average analyst target price at $57.15 (implies a discount of -22.8%). EPS projected to grow by 28.9% over the next five years. Short float at 1.85%, which implies a short ratio of 2.22 days. The stock has gained 5.68% over the last year.

5. Petrohawk Energy Corporation (NYSE:HK): Independent Oil & Gas Industry. Market cap of $5.76B. Current price at $19.05 vs. average analyst target price at $24.57 (implies a discount of -22.47%). EPS projected to grow by 36.4% over the next five years. Short float at 7.47%, which implies a short ratio of 3.67 days. The stock has lost -26.5% over the last year.

6. Panasonic Corporation (PC): Electronic Equipment Industry. Market cap of $29.71B. Current price at $14.35 vs. average analyst target price at $18.19 (implies a discount of -21.11%). EPS projected to grow by 54.9% over the next five years. Short float at 0%, which implies a short ratio of 0.36 days. The stock has lost -1.98% over the last year.

7. ICICI Bank Ltd. (NYSE:IBN): Foreign Regional Banks Industry. Market cap of $27.26B. Current price at $47.5 vs. average analyst target price at $60 (implies a discount of -20.83%). EPS projected to grow by 24% over the next five years. Short float at 1.62%, which implies a short ratio of 1.83 days. The stock has gained 22.68% over the last year.

8. Cosan Ltd. (NYSE:CZZ): Confectioners Industry. Market cap of $3.88B. Current price at $14.35 vs. average analyst target price at $17.96 (implies a discount of -20.1%). EPS projected to grow by 53.9% over the next five years. Short float at 1.07%, which implies a short ratio of 0.74 days. The stock has gained 59.09% over the last year.

9. Equinix, Inc. (NASDAQ:EQIX): Telecom Services Industry. Market cap of $3.81B. Current price at $82.84 vs. average analyst target price at $102.88 (implies a discount of -19.48%). EPS projected to grow by 20.63% over the next five years. Short float at 13.99%, which implies a short ratio of 3.32 days. The stock has lost -23.68% over the last year.

10. China Life Insurance Co. Ltd. (NYSE:LFC): Life Insurance Industry. Market cap of $117.92B. Current price at $62.58 vs. average analyst target price at $76.47 (implies a discount of -18.16%). EPS projected to grow by 21.6% over the next five years. Short float at 0.25%, which implies a short ratio of 2.52 days. The stock has lost -15.66% over the last year.

11. China Petroleum & Chemical Corp. (NYSE:SNP): Independent Oil & Gas Industry. Market cap of $86.46B. Current price at $99.72 vs. average analyst target price at $121.69 (implies a discount of -18.05%). EPS projected to grow by 41.6% over the next five years. Short float at 0.2%, which implies a short ratio of 1.85 days. The stock has gained 17.23% over the last year.

12. Repsol YPF SA (REP): Major Integrated Oil & Gas Industry. Market cap of $33.85B. Current price at $27.73 vs. average analyst target price at $33.5 (implies a discount of -17.22%). EPS projected to grow by 35.3% over the next five years. Short float at 0.17%, which implies a short ratio of 2.23 days. The stock has gained 4.84% over the last year.

13. Southwest Airlines Co. (NYSE:LUV): Regional Airlines Industry. Market cap of $9.94B. Current price at $13.31 vs. average analyst target price at $15.98 (implies a discount of -16.71%). EPS projected to grow by 28.5% over the next five years. Short float at 2.46%, which implies a short ratio of 3.48 days. The stock has gained 16.75% over the last year.

14. HDFC Bank Ltd. (NYSE:HDB): Foreign Regional Banks Industry. Market cap of $25.01B. Current price at $163.2 vs. average analyst target price at $195 (implies a discount of -16.31%). EPS projected to grow by 30% over the next five years. Short float at 0.79%, which implies a short ratio of 3.78 days. The stock has gained 22.48% over the last year.

15. Ctrip.com International Ltd. (NASDAQ:CTRP): Consumer Services Industry. Market cap of $6.07B. Current price at $44.59 vs. average analyst target price at $53.23 (implies a discount of -16.23%). EPS projected to grow by 31.36% over the next five years. Short float at 5.63%, which implies a short ratio of 2.97 days. The stock has gained 19% over the last year.

16. DIRECTV (NASDAQ:DTV): CATV Systems Industry. Market cap of $35.42B. Current price at $41.4 vs. average analyst target price at $49.33 (implies a discount of -16.08%). EPS projected to grow by 26.22% over the next five years. Short float at 2.34%, which implies a short ratio of 2.48 days. The stock has gained 22.05% over the last year.

17. Harmony Gold Mining Co. Ltd. (NYSE:HMY): Gold Industry. Market cap of $5.13B. Current price at $11.97 vs. average analyst target price at $14.17 (implies a discount of -15.53%). EPS projected to grow by 28.4% over the next five years. Short float at 0.97%, which implies a short ratio of 1.82 days. The stock has gained 11.66% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Top 17 Most Undervalued Growth Stocks by Target Price