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The following is a list of undervalued stocks, with Price to Earnings Growth (PEG) ratios below 1. The management teams mentioned below have all outperformed their competitors over the last five years, when comparing the Return on Assets (ROA), Return on Invested Capital (ROI) and Return on Equity (ROE) ratios.

Will these management teams continue to outperform? What do you think? This list might offer an interesting starting point to a value-oriented investor looking for quality companies. Full details below.

Management data and industry comps sourced from Reuters, PEG ratios, 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 by the PEG ratio.

1. Royal Caribbean Cruises Ltd. (NYSE:RCL): General Entertainment Industry. Market cap of $10.22B. PEG ratio at 0.8. 5-year average ROA at 3.7% vs. industry average at 3.66%. 5-year average ROI at 4.41% vs. industry average at 4.36%. 5-year average ROE at 8.41% vs. industry average at 6.62%. Short float at 7.93%, which implies a short ratio of 4.1 days. The stock has gained 78.7% over the last year.

2. Gilead Sciences Inc. (NASDAQ:GILD): Biotechnology Industry. Market cap of $30.99B. PEG ratio at 0.81. 5-year average ROA at 21.83% vs. industry average at 3.21%. 5-year average ROI at 26.53% vs. industry average at 3.73%. 5-year average ROE at 34.88% vs. industry average at 4.3%. Short float at 2%, which implies a short ratio of 1.86 days. The stock has lost -16.62% over the last year.

3. Corning Inc. (NYSE:GLW): Communication Equipment Industry. Market cap of $30.29B. PEG ratio at 0.84. 5-year average ROA at 13.87% vs. industry average at 4.49%. 5-year average ROI at 16.41% vs. industry average at 6.14%. 5-year average ROE at 26.19% vs. industry average at 4.81%. Short float at 1.95%, which implies a short ratio of 2.59 days. The stock has gained 0% over the last year.

4. Netease.com Inc. (NASDAQ:NTES): Internet Software & Services Industry. Market cap of $4.99B. PEG ratio at 0.84. 5-year average ROA at 27.58% vs. industry average at 19.42%. 5-year average ROI at 32.93% vs. industry average at 25.82%. 5-year average ROE at 36.62% vs. industry average at 27.99%. Short float at 3.52%, which implies a short ratio of 3.91 days. The stock has gained 7.52% over the last year.

5. Cameco Corp. (NYSE:CCJ): Industrial Metals & Minerals Industry. Market cap of $15.05B. PEG ratio at 0.85. 5-year average ROA at 7.76% vs. industry average at 7.13%. 5-year average ROI at 9.66% vs. industry average at 8.67%. 5-year average ROE at 13.49% vs. industry average at 11.8%. Short float at 0.88%, which implies a short ratio of 1.43 days. The stock has gained 32.49% over the last year.

6. Southern Copper Corp. (NYSE:SCCO): Copper Industry. Market cap of $38.38B. PEG ratio at 0.85. 5-year average ROA at 26.7% vs. industry average at 15.21%. 5-year average ROI at 30.99% vs. industry average at 18.73%. 5-year average ROE at 45.48% vs. industry average at 21.3%. Short float at 3.16%, which implies a short ratio of 2.81 days. The stock has gained 55.53% over the last year.

7. H&R Block, Inc. (NYSE:HRB): Personal Services Industry. Market cap of $4.03B. PEG ratio at 0.87. 5-year average ROA at 7.07% vs. industry average at 6.96%. 5-year average ROI at 15.11% vs. industry average at 9.52%. 5-year average ROE at 27.56% vs. industry average at 13.74%. Short float at 10.7%, which implies a short ratio of 4.89 days. The stock has lost -39.18% over the last year.

8. First Solar, Inc. (NASDAQ:FSLR): Semiconductor Industry. Market cap of $12.63B. PEG ratio at 0.88. 5-year average ROA at 19.52% vs. industry average at 3.85%. 5-year average ROI at 22.83% vs. industry average at 5.43%. 5-year average ROE at 25.72% vs. industry average at 9.04%. Short float at 29.81%, which implies a short ratio of 9.98 days. The stock has gained 23.73% over the last year.

9. Nidec Corp. (NYSE:NJ): Industrial Electrical Equipment Industry. Market cap of $13.61B. PEG ratio at 0.88. 5-year average ROA at 7.45% vs. industry average at 4.49%. 5-year average ROI at 14.23% vs. industry average at 6.14%. 5-year average ROE at 14.25% vs. industry average at 4.81%. Short float at 0.03%, which implies a short ratio of 3.11 days. The stock has gained 3.3% over the last year.

10. Ensco plc (NYSE:ESV): Oil & Gas Drilling & Exploration Industry. Market cap of $7.5B. PEG ratio at 0.92. 5-year average ROA at 16.49% vs. industry average at 6.27%. 5-year average ROI at 17.92% vs. industry average at 8.1%. 5-year average ROE at 21.65% vs. industry average at 11.39%. Short float at 4.05%, which implies a short ratio of 3.91 days. The stock has gained 27.03% over the last year.

11. Canon Inc. (NYSE:CAJ): Photographic Equipment & Supplies Industry. Market cap of $61.39B. PEG ratio at 0.93. 5-year average ROA at 8.81% vs. industry average at 5.92%. 5-year average ROI at 12.69% vs. industry average at 8.63%. 5-year average ROE at 12.98% vs. industry average at 9.4%. Short float at 0.04%, which implies a short ratio of 1.52 days. The stock has gained 21.32% over the last year.

12. Best Buy Co. Inc. (NYSE:BBY): Electronics Stores Industry. Market cap of $13.92B. PEG ratio at 0.94. 5-year average ROA at 9.3% vs. industry average at 4.34%. 5-year average ROI at 19.31% vs. industry average at 7.51%. 5-year average ROE at 24.04% vs. industry average at 11.03%. Short float at 4%, which implies a short ratio of 1.73 days. The stock has lost -6.04% over the last year.

13. DIRECTV (NASDAQ:DTV): CATV Systems Industry. Market cap of $36.19B. PEG ratio at 0.94. 5-year average ROA at 7.37% vs. industry average at 4.23%. 5-year average ROI at 9.57% vs. industry average at 1%. 5-year average ROE at 18.25% vs. industry average at 10.65%. Short float at 1.54%, which implies a short ratio of 1.64 days. The stock has gained 31.65% over the last year.

14. Telecom Argentina S A (NYSE:TEO): Diversified Communication Services Industry. Market cap of $5.24B. PEG ratio at 0.95. 5-year average ROA at 10.07% vs. industry average at 4.18%. 5-year average ROI at 17.9% vs. industry average at 5.89%. 5-year average ROE at 36.76% vs. industry average at 8.67%. Short float at 0.37%, which implies a short ratio of 1.09 days. The stock has gained 66.21% over the last year.

15. BHP Billiton plc (NYSE:BBL): Industrial Metals & Minerals Industry. Market cap of $212.13B. PEG ratio at 0.97. 5-year average ROA at 17.98% vs. industry average at 15.21%. 5-year average ROI at 22.08% vs. industry average at 18.73%. 5-year average ROE at 35.02% vs. industry average at 21.3%. Short float at 0.02%, which implies a short ratio of 0.4 days. The stock has gained 24.92% over the last year.

16. Siemens AG (SI): Telecom Services. Market cap of $106.33B. PEG ratio at 0.97. 5-year average ROA at 3.24% vs. industry average at 2.71%. 5-year average ROI at 5.81% vs. industry average at 5.29%. 5-year average ROE at 10.28% vs. industry average at 7.19%. Short float at 0.07%, which implies a short ratio of 0.83 days. The stock has gained 37.83% over the last year.

17. Western Digital Corp. (NASDAQ:WDC): Data Storage Devices Industry. Market cap of $7.3B. PEG ratio at 0.97. 5-year average ROA at 18.75% vs. industry average at 7.61%. 5-year average ROI at 28.08% vs. industry average at 15.34%. 5-year average ROE at 32.08% vs. industry average at 16.8%. Short float at 2.49%, which implies a short ratio of 1.38 days. The stock has lost -29.85% over the last year.

18. Vale S.A. (NYSE:VALE): Steel & Iron Industry. Market cap of $187.62B. PEG ratio at 0.98. 5-year average ROA at 13.59% vs. industry average at 12.06%. 5-year average ROI at 16% vs. industry average at 15.19%. 5-year average ROE at 29.66% vs. industry average at 24.04%. Short float at 0.66%, which implies a short ratio of 1.89 days. The stock has gained 27.17% over the last year.

19. Endo Pharmaceuticals Holdings Inc. (NASDAQ:ENDP): Drug Manufacturer. Market cap of $3.9B. PEG ratio at 0.99. 5-year average ROA at 13.45% vs. industry average at 9.93%. 5-year average ROI at 17.87% vs. industry average at 12.87%. 5-year average ROE at 19.95% vs. industry average at 16.34%. Short float at 4.41%, which implies a short ratio of 3.82 days. The stock has gained 65.38% over the last year.

20. The TJX Companies, Inc. (NYSE:TJX): Department Stores Industry. Market cap of $18.61B. PEG ratio at 0.99. 5-year average ROA at 14.33% vs. industry average at 8.79%. 5-year average ROI at 24.49% vs. industry average at 13.14%. 5-year average ROE at 40.76% vs. industry average at 15.02%. Short float at 1.98%, which implies a short ratio of 2.18 days. The stock has gained 29.28% 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: 20 Undervalued Stocks Backed by Strong Management Teams