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The following is a list of stocks in rally mode, i.e. trading above the 20-day, 50-day and 200-day moving averages. In addition, all of these stocks are deeply undervalued when comparing the following ratios to their competitors:

  • Trailing Twelve Months Price to Earnings Ratio
  • Trailing Twelve Months Price to Sales Ratio
  • Most Recent Quarter Price to Book Ratio
  • Trailing Twelve Month Price to Cashflow
  • Trailing Twelve Month Price to Free Cashflow

We're not going to go into detailed analysis for each company. The goal here is to give value-oriented investors a starting point for their own analysis.

Valuation data and industry comps sourced from Reuters, short float and performance data 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 alphabetically.

1. CNOOC Ltd. (NYSE:CEO): Independent Oil & Gas Industry. Market cap of $109.81B. TTM Price/Earnings ratio at 16.83 vs. industry average at 24.08. TTM Price/Sales ratio at 4.89 vs. industry average at 9.4. Price/Book ratio at 3.77 vs. industry average at 1.29. TTM Price/Cashflow ratio at 11.1 vs. industry average at 17.64. TTM Price/FreeCashflow ratio at 9.8 vs. industry average at 10.79. The stock is currently 0.38% above its 20-day MA, 3.95% above its 50-day MA, and 27.21% above its 200-day MA. Short float at 0.23%, which implies a short ratio of 2.18 days. The stock has gained 65.05% over the last year.

2. Empresa Brasileira de Aeron (NYSE:ERJ): Aerospace/Defense Products & Services Industry. Market cap of $6.11B. TTM Price/Earnings ratio at 17.04 vs. industry average at 30.25. TTM Price/Sales ratio at 1.22 vs. industry average at 2.28. Price/Book ratio at 2.44 vs. industry average at 2.48. TTM Price/Cashflow ratio at 13.78 vs. industry average at 17.19. TTM Price/FreeCashflow ratio at 13.91 vs. industry average at 9.78. The stock is currently 10.5% above its 20-day MA, 11.64% above its 50-day MA, and 27.15% above its 200-day MA. Short float at 1.5%, which implies a short ratio of 2.77 days. The stock has gained 46.06% over the last year.

3. Makita Corp. (OTCPK:MKTAY): Small Tools & Accessories Industry. Market cap of $5.82B. TTM Price/Earnings ratio at 17.86 vs. industry average at 27.39. TTM Price/Sales ratio at 1.83 vs. industry average at 2.18. Price/Book ratio at 1.64 vs. industry average at 1.84. TTM Price/Cashflow ratio at 13.65 vs. industry average at 13.11. TTM Price/FreeCashflow ratio at 17.73 vs. industry average at 26.15. The stock is currently 1.1% above its 20-day MA, 6.99% above its 50-day MA, and 28.26% above its 200-day MA. Short float at 0.03%, which implies a short ratio of 2.61 days. The stock has gained 19.81% over the last year.

4. ONEOK Inc. (NYSE:OKE): Gas Utilities Industry. Market cap of $6.13B. TTM Price/Earnings ratio at 17.92 vs. industry average at 23.5. TTM Price/Sales ratio at 0.46 vs. industry average at 2.33. Price/Book ratio at 2.54 vs. industry average at 0.56. TTM Price/Cashflow ratio at 7.29 vs. industry average at 13.79. TTM Price/FreeCashflow ratio at 27.58 vs. industry average at 144.47. The stock is currently 3.74% above its 20-day MA, 8.16% above its 50-day MA, and 22.28% above its 200-day MA. Short float at 1.7%, which implies a short ratio of 3.02 days. The stock has gained 30.08% over the last year.

5. Transocean Ltd. (NYSE:RIG): Oil & Gas Drilling & Exploration Industry. Market cap of $25.27B. TTM Price/Earnings ratio at 10.3 vs. industry average at 27.15. TTM Price/Sales ratio at 2.49 vs. industry average at 2.88. Price/Book ratio at 1.2 vs. industry average at 2.34. TTM Price/Cashflow ratio at 6.2 vs. industry average at 7.64. TTM Price/FreeCashflow ratio at 10.17 vs. industry average at 17.39. The stock is currently 7.45% above its 20-day MA, 10.99% above its 50-day MA, and 24.77% above its 200-day MA. Short float at 4.67%, which implies a short ratio of 2.24 days. The stock has lost -14.86% over the last year.

6. Telecom Argentina S A (NYSE:TEO): Diversified Communication Services Industry. Market cap of $5.28B. TTM Price/Earnings ratio at 12.29 vs. industry average at 12.63. TTM Price/Sales ratio at 1.52 vs. industry average at 2.2. Price/Book ratio at 3.69 vs. industry average at 1.42. TTM Price/Cashflow ratio at 7 vs. industry average at 31.1. TTM Price/FreeCashflow ratio at 11.84 vs. industry average at 31.99. The stock is currently 4.24% above its 20-day MA, 7.41% above its 50-day MA, and 30.51% above its 200-day MA. Short float at 0.37%, which implies a short ratio of 1.1 days. The stock has gained 63.91% 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: Momentum Ideas: 6 Undervalued Stocks in Rally Mode