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

If you’re looking across the pond for investment opportunities, this list may be a great launching pad for ideas.

Here we present 5 European stocks that are undervalued by three measures: PEG ratio below 1, P/FCF ratio below 10, and trading at a significant discount to analyst target price.

Do you think it’s the right time to pick up these names? Use this list as a starting-off point for your own analysis.

click for expanded image

List sorted by discount from target price.

1. Barclays PLC (BCS): Foreign Money Center Banks Industry. Market cap of $58.52B. United Kingdom. PEG at 0.33. P/FCF at 1.94. Current price at $32.32 vs. target price at $19.35 (implying a discount of 40.13%). This is a risky stock that is significantly more volatile than the overall market (beta = 2.52). The stock has had a couple of great days, gaining 7.11% over the last week.

2. ASM International NV (ASMI): Semiconductor Equipment & Materials Industry. Market cap of $2.21B. Netherlands. PEG at 0.62. P/FCF at 9.96. Current price at $52.00 vs. target price at $39.73 (implying a discount of 23.60%). The stock has gained 47.05% over the last year.

3. Xyratex Ltd. (XRTX): Data Storage Devices Industry. Market cap of $304.31M. United Kingdom. PEG at 0.45. P/FCF at 7.74. Current price at $12.81 vs. target price at $10.16 (implying a discount of 20.69%). The stock is currently stuck in a downtrend, trading 5.65% below its SMA20, 15.47% below its SMA50, and 26.82% below its SMA200. XRTX has lost 9.95% over the last week.

4. Flagstone Reinsurance Holdings SA (FSR): Property & Casualty Insurance Industry. Market cap of $630.51M. Luxembourg. PEG at 0.74. P/FCF at 2.54. Current price at $10.67 vs. target price at $8.89 (implying a discount of 16.68%). The stock has performed poorly over the last month, losing 20.61%.

5. HSBC Holdings plc (HBC): Foreign Money Center Banks Industry. Market cap of $193.06B. United Kingdom. PEG at 0.37. P/FCF at 4.01. Current price at $61.08 vs. target price at $54.21 (implying a discount of 11.25%). The stock has had a couple of great days, gaining 5.37% over the last week.

*Price multiples, target price, and all other data sourced from Finviz.

Source: 5 Deeply Undervalued European Stocks for Your Watchlist