Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

The following is a list of stocks that have reached a new 52-week high during recent sessions. In addition, all of the stocks mentioned below are deeply undervalued, when comparing the current price to the average analyst target price (used as a proxy for fair value).

Yes, there are many limitations to this approach of finding undervalued companies, but the goal here is to give a value-oriented investor a starting point for his or her own analysis.

We also wanted to evaluate the past performance of trading the 52-week high signal for this sample of stocks. For each stock, we'll list the backtested results of a simple strategy described below. You can access the historical performance of the signal by clicking here.

Analysts seem to think these companies are deeply undervalued, what do you think? Full details below.

Price target 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.

Backtested Strategy: Buy 100 shares if the stock reaches a new high (as long as the stock is above its 200-day SMA). Sell if the stock moves below its 200-day SMA.

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

1. Macquarie Infrastructure Company LLC (NYSE:MIC): Basic Materials Wholesale Industry. Market cap of $1.12B. Price at time of writing $24.31 vs. target price of $37.13 (discount of 34.53%). Short float at 0.89%, which implies a short ratio of 2.8 days. The stock has gained 80.4% over the last year.

Backtested Results For MIC: Over the last 5 years, the 52-week high alert was triggered 3 times. Trading the above-mentioned strategy resulted in 2 winners and 1 loser (66.67% success rate). The strategy returned 24.43%, higher than the buy and hold return of -23.37%.

2. International Paper Co. (NYSE:IP): Paper & Paper Products Industry. Market cap of $13.03B. Price at time of writing $30.0 vs. target price of $35.93 (discount of 16.5%). Short float at 1.97%, which implies a short ratio of 1.73 days. The stock has gained 26.29% over the last year.

Backtested Results For IP: Over the last 5 years, the 52-week high alert was triggered 3 times. Trading the above-mentioned strategy resulted in 0 winners and 3 losers (0% success rate). The strategy returned -26.93%, lower than the buy and hold return of -9.68%.

3. Arrow Electronics, Inc. (NYSE:ARW): Electronics Wholesale Industry. Market cap of $4.76B. Price at time of writing $41.65 vs. target price of $48.0 (discount of 13.23%). Short float at 2.01%, which implies a short ratio of 2.55 days. The stock has gained 46.47% over the last year.

Backtested Results For ARW: Over the last 5 years, the 52-week high alert was triggered 4 times. Trading the above-mentioned strategy resulted in 0 winners and 4 losers (0% success rate). The strategy returned -25.59%, lower than the buy and hold return of 23.43%.

4. PolyOne Corporation (NYSE:POL): Synthetics Industry. Market cap of $1.39B. Price at time of writing $14.78 vs. target price of $17.0 (discount of 13.06%). Short float at 2.32%, which implies a short ratio of 2.74 days. The stock has gained 87.5% over the last year.

Backtested Results For POL: Over the last 5 years, the 52-week high alert was triggered 3 times. Trading the above-mentioned strategy resulted in 1 winner and 2 losers (33.33% success rate). The strategy returned -21.13%, lower than the buy and hold return of 113.46%.

5. RSC Holdings, Inc. (NYSE:RRR): Rental & Leasing Services Industry. Market cap of $1.36B. Price at time of writing $13.09 vs. target price of $14.94 (discount of 12.38%). Short float at 1.61%, which implies a short ratio of 1.79 days. The stock has gained 84.43% over the last year.

Backtested Results For RRR: Over the last 5 years, the 52-week high alert was triggered 1 time. Trading the above-mentioned strategy resulted in 0 winners and 1 loser (0% success rate). The strategy returned -17.15%, higher than the buy and hold return of -30.58%.

6. Stillwater Mining Co. (NYSE:SWC): Industrial Metals & Minerals Industry. Market cap of $2.5B. Price at time of writing $24.83 vs. target price of $28.33 (discount of 12.35%). Short float at 15.14%, which implies a short ratio of 1.96 days. The stock has gained 109.01% over the last year.

Backtested Results For SWC: Over the last 5 years, the 52-week high alert was triggered 3 times. Trading the above-mentioned strategy resulted in 1 winner and 2 losers (33.33% success rate). The strategy returned 10.71%, lower than the buy and hold return of 99.19%.

7. Reinsurance Group of America Inc. (NYSE:RGA): Life Insurance Industry. Market cap of $3.81B. Price at time of writing $61.27 vs. target price of $69.06 (discount of 11.28%). Short float at 3.32%, which implies a short ratio of 4.73 days. The stock has gained 33.12% over the last year.

Backtested Results For RGA: Over the last 5 years, the 52-week high alert was triggered 2 times. Trading the above-mentioned strategy resulted in 1 winner and 1 loser (50% success rate). The strategy returned 13.07%, lower than the buy and hold return of 28.73%.

8. MAXIMUS, Inc. (NYSE:MMS): Business Services Industry. Market cap of $1.23B. Price at time of writing $71.71 vs. target price of $80.67 (discount of 11.11%). Short float at 2.12%, which implies a short ratio of 4.67 days. The stock has gained 28.31% over the last year.

Backtested Results For MMS: Over the last 5 years, the 52-week high alert was triggered 3 times. Trading the above-mentioned strategy resulted in 2 winners and 1 loser (66.67% success rate). The strategy returned 42.96%, lower than the buy and hold return of 90.07%.

9. Peabody Energy Corp. (NYSE:BTU): Industrial Metals & Minerals Industry. Market cap of $17.77B. Price at time of writing $65.32 vs. target price of $73.45 (discount of 11.07%). Short float at 2.26%, which implies a short ratio of 1.52 days. The stock has gained 42.8% over the last year.

Backtested Results For BTU: Over the last 5 years, the 52-week high alert was triggered 4 times. Trading the above-mentioned strategy resulted in 2 winners and 2 losers (50% success rate). The strategy returned -8.52%, lower than the buy and hold return of 56.84%.

10. Steel Dynamics Inc. (NASDAQ:STLD): Steel & Iron Industry. Market cap of $4.22B. Price at time of writing $19.41 vs. target price of $21.78 (discount of 10.88%). Short float at 2.86%, which implies a short ratio of 1.5 days. The stock has gained 20.88% over the last year.

Backtested Results For STLD: Over the last 5 years, the 52-week high alert was triggered 5 times. Trading the above-mentioned strategy resulted in 2 winners and 3 losers (40% success rate). The strategy returned -7.1%, lower than the buy and hold return of 112.54%.

11. Waste Connections Inc. (NYSE:WCN): Waste Management Industry. Market cap of $3.37B. Price at time of writing $29.72 vs. target price of $33.25 (discount of 10.62%). Short float at 6.64%, which implies a short ratio of 15.02 days. The stock has gained 35.14% over the last year.

Backtested Results For WCN: Over the last 5 years, the 52-week high alert was triggered 5 times. Trading the above-mentioned strategy resulted in 1 winner and 4 losers (20% success rate). The strategy returned -27.78%, lower than the buy and hold return of 91.17%.

12. Eagle Rock Energy Partners, L.P. (NASDAQ:EROC): Oil & Gas Refining & Marketing Industry. Market cap of $787.72M. Price at time of writing $9.39 vs. target price of $10.5 (discount of 10.57%). Short float at 1.28%, which implies a short ratio of 2.89 days. The stock has gained 61.63% over the last year.

Backtested Results For EROC: Over the last 5 years, the 52-week high alert was triggered 1 time. Trading the above-mentioned strategy resulted in 0 winners and 1 loser (0% success rate). The strategy returned -22.57%, higher than the buy and hold return of -48.65%.

13. AmTrust Financial Services, Inc. (NASDAQ:AFSI): Property & Casualty Insurance Industry. Market cap of $1.12B. Price at time of writing $18.97 vs. target price of $21.17 (discount of 10.39%). Short float at 7.67%, which implies a short ratio of 12 days. The stock has gained 63.34% over the last year.

Backtested Results For AFSI: Over the last 5 years, the 52-week high alert was triggered 1 time. Trading the above-mentioned strategy resulted in 0 winners and 1 loser (0% success rate). The strategy returned -5.17%, lower than the buy and hold return of 145.38%.

14. Schlumberger Limited (NYSE:SLB): Oil & Gas Equipment & Services Industry. Market cap of $125.54B. Price at time of writing $91.48 vs. target price of $102.03 (discount of 10.34%). Short float at 1.02%, which implies a short ratio of 1.83 days. The stock has gained 42.32% over the last year.

Backtested Results For SLB: Over the last 5 years, the 52-week high alert was triggered 4 times. Trading the above-mentioned strategy resulted in 2 winners and 2 losers (50% success rate). The strategy returned -8.95%, lower than the buy and hold return of 70.21%.

15. MasTec, Inc. (NYSE:MTZ): Heavy Construction Industry. Market cap of $1.24B. Price at time of writing $16.22 vs. target price of $18.04 (discount of 10.09%). Short float at 6.24%, which implies a short ratio of 5.63 days. The stock has gained 29.35% over the last year.

Backtested Results For MTZ: Over the last 5 years, the 52-week high alert was triggered 2 times. Trading the above-mentioned strategy resulted in 0 winners and 2 losers (0% success rate). The strategy returned -9.96%, lower than the buy and hold return of 51.94%.

Source: Top 15 Most Undervalued Stocks Reaching New Highs