20 Undervalued Companies Boosting Earnings Guidance

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 |  Includes: AAPL, ASIA, BAH, BRK.A, CEPH, CROX, CXW, DAN, DECK, DRI, EZPW, KAR, KMT, LXK, NAV, PPDI, QLGC, TGI, TTMI, WFT
by: Kapitall

The following is a list of twenty companies that have recently raised earnings guidance above analysts’ estimates. These stocks are also significantly undervalued relative to analyst target price.

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.

Do you think these names can continue to beat analyst estimates? Use this list as a starting point for your own analysis.

Earnings guidance data sourced from Briefing.com, price target and all other data sourced from Finviz.

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List sorted by implied discount relative to target price.

1. AsiaInfo-Linkage,Inc. (NASDAQ:ASIA): Security Software & Services Industry. Market cap of $1.52B. Current price at $20.03 vs. target price at $26.88 (implies a discount of 34.20%). Guided Q1 at $0.37-0.39 vs. analysts' estimate of $0.36. The stock has lost 27.34% over the last year.

2. Weatherford International Ltd. (NYSE:WFT): Oil & Gas Equipment & Services Industry. Market cap of $15.78B. Current price at $20.59 vs. target price at $27.18 (implies a discount of 32.01%). Guided FY11 at “approx. $1.30” vs. analysts' estimate of $1.25. After a solid performance over the last year, WFT has pulled back during recent sessions. The stock is 15.09% below its SMA20 and 12.01% below its SMA50, but remains 12.38% above its SMA200. The stock has also performed poorly over the last month, losing 12.54%.

3. Booz Allen Hamilton Holding Cor (NYSE:BAH): Management Services Industry. Market cap of $2.39B. Current price at $18.50 vs. target price at $23.63 (implies a discount of 27.73%). Guided FY12 at $1.45-1.55 vs. analysts' estimate of $1.43.

4. Triumph Group, Inc. (NYSE:TGI): Aerospace/Defense Products & Services Industry. Market cap of $2.16B. Current price at $86.13 vs. target price at $109.83 (implies a discount of 27.52%). Guided FY11 at approx. $6.75 vs. analysts' estimate of $6.66. The stock is a short squeeze candidate, with a short float at 8.17% (equivalent to 9.83 days of average volume). The stock has also had a couple of great days, gaining 6.34% over the last week.

5. TTM Technologies Inc. (NASDAQ:TTMI): Printed Circuit Boards Industry. Market cap of $1.46B. Current price at $17.73 vs. target price at $22.60 (implies a discount of 27.47%). Guided Q4 at $0.45-0.50 vs. analysts' estimate of $0.39. Short float at 7.34% (equivalent to 5.37 days of average volume), implying the stock is a short squeeze candidate. The stock has had a couple of great days, gaining 7.31% over the last week.

6. CROCS Inc. (NASDAQ:CROX): Apparel Footwear & Accessories Industry. Market cap of $1.56B. Current price at $18.15 vs. target price at $23.00 (implies a discount of 26.72%). Guided Q1 at $0.19 vs. analysts' estimate of $0.17. This is a risky stock that is significantly more volatile than the overall market (beta = 2.02). The stock has gained 146.49% over the last year.

7. Deckers Outdoor Corp. (NYSE:DECK): Apparel Footwear & Accessories Industry. Market cap of $3.32B. Current price at $86.01 vs. target price at $108 (implies a discount of 25.57%). Guided FY11 at $4.87 vs. analysts' estimate of $4.26. The stock has had a good month, gaining 13.52%.

8. Kennametal Inc. (NYSE:KMT): Machine Tools & Accessories Industry. Market cap of $3.25B. Current price at $38.48 vs. target price at $47 (implies a discount of 22.14%). Guided FY11 at $2.50-2.65 vs. analysts' estimate of $2.48. After a solid performance over the last year, KMT has pulled back during recent sessions. The stock is 3.04% below its SMA20 and 4.48% below its SMA50, but remains 18.59% above its SMA200.

9. Pharmaceutical Product Development Inc. (NASDAQ:PPDI): Medical Laboratories & Research Industry. Market cap of $3.38B. Current price at $28.09 vs. target price at $34.15 (implies a discount of 21.57%). Guided FY11 at $1.53-1.69 vs. analysts' estimate of $1.48. The stock has a relatively low correlation to the market (beta = 0.51), which may be appealing to risk-averse investors. The stock is also a short squeeze candidate, with a short float at 6.27% (equivalent to 9.06 days of average volume).

10. KAR Auction Services, Inc. (NYSE:KAR): Auto Dealerships Industry. Market cap of $1.94B. Current price at $14.33 vs. target price at $17.36 (implies a discount of 21.14%). Guided FY11 at $1.20-1.25 vs. analysts' estimate of $1.07. The stock has gained 2.14% over the last year.

11. Navistar International Corp. (NYSE:NAV): Trucks & Other Vehicles Industry. Market cap of $4.40B. Current price at $60.21 vs. target price at $72.80 (implies a discount of 20.91%). Guided FY11 at $5.00-6.00 vs. analysts' estimate of $4.67. The stock has gained 45.97% over the last year.

12. Dana Holding Corporation (NYSE:DAN): Auto Parts Industry. Market cap of $2.66B. Current price at $18.63 vs. target price at $22.50 (implies a discount of 20.77%). Guided FY11 at $1.50-1.60 vs. analysts' estimate of $1.18. The stock has gained 60.78% over the last year.

13. Corrections Corporation of America (NYSE:CXW): Property Management Industry. Market cap of $2.73B. Current price at $24.58 vs. target price at $29.60 (implies a discount of 20.42%). Guided FY10 at $1.37-1.45 vs. analysts' estimate of $1.36. The stock has gained 19.39% over the last year.

14. Lexmark International Inc. (NYSE:LXK): Computer Based Systems Industry. Market cap of $2.89B. Current price at $35.95 vs. target price at $43.15 (implies a discount of 20.03%). Guided Q1 at $1.18-1.28 vs. analysts' estimate of $1.14. The stock has gained 7.41% over the last year.

15. Lubrizol Corporation (LZ): Specialty Chemicals Industry. Market cap of $7.08B. Current price at $106.41 vs. target price at $127.00 (implies a discount of 19.35%). Guided FY11 at $11.05-11.55 vs. analysts' estimate of $10.82. The stock has gained 26.38% over the last year.

16. Darden Restaurants, Inc. (NYSE:DRI): Restaurants Industry. Market cap of $6.50B. Current price at $46.29 vs. target price at $55.13 (implies a discount of 19.10%). Guided FY11 at $3.36-3.37 vs. analysts' estimate of $3.34. Guided Q3 at $1.04-1.06 vs. analysts' estimate of $1.01. The stock has gained 19.74% over the last year.

17. Cephalon Inc. (NASDAQ:CEPH): Biotechnology Industry. Market cap of $4.37B. Current price at $56.38 vs. target price at $67.12 (implies a discount of 19.05%). Guided FY11 at $8.70-9.00 vs. analysts' estimate of $8.15. The stock has relatively low correlation to the market (beta = 0.42), which may be appealing to risk-averse investors. Short float at 19.06% (equivalent to 10 days of average volume). The stock has lost 17.81% over the last year.

18. QLogic Corp. (NASDAQ:QLGC): Semiconductor Industry. Market cap of $1.88B. Current price at $17.61 vs. target price at $20.84 (implies a discount of 18.34%). Guided Q3 at $0.38-0.39 vs. analysts' estimate of $0.36. The stock has lost 4.39% over the last year.

19. EZCORP Inc. (NASDAQ:EZPW): Specialty Retail Industry. Market cap of $1.47B. Current price at $28.88 vs. target price at $34.17 (implies a discount of 18.32%). Guided FY11 at $2.40 vs. analysts' estimate of $2.35. The stock has gained 45.21% over the last year.

20. Apple Inc. (NASDAQ:AAPL): Personal Computers Industry. Market cap of $331.26B. Current price at $358.35 vs. target price at $423.22 (implies a discount of 18.10%). Guided Q2 at $4.90 vs. analysts' estimate of $4.46. The stock has gained 70.64% 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.