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In this article we present 20 stocks that are at least 25% below their 52-week highs but have recently seen analyst upgrades. In fact these stocks are in the top 10 percentile in terms of changes in analysts’ consensus view during the past 30 days.

Company Name

Symbol

Target Price

Last Price

Upside Potential

BPZ RESOURCES INC

BPZ

8.09

4.76

70%

DEMAND MEDIA INC

DMD

26.50

16.57

60%

HIGHER ONE HOLDINGS INC

ONE

22.13

14.09

57%

QUINSTREET INC

QNST

26.89

18.08

49%

MARVELL TECHNOLOGY

MRVL

21.30

15.43

38%

GEVO INC

GEVO

24.75

19.35

28%

PENN VIRGINIA CORP

PVA

19.73

15.46

28%

FELCOR LODGING TRUST INC

FCH

7.91

6.36

24%

DREAMWORKS ANIMATION

DWA

32.56

26.49

23%

TELLABS INC

TLAB

5.93

4.90

21%

SYNOVUS FINANCIAL CORP.

SNV

2.98

2.50

19%

MOMENTA PHARMA

MNTA

22.00

18.86

17%

FIRSTMERIT CORP

FMER

19.70

17.47

13%

OLD NATIONAL BANCORP

ONB

11.58

10.35

12%

BOYD GAMING CORP

BYD

9.92

8.94

11%

BEBE STORES INC

BEBE

7.41

6.72

10%

CAPELLA EDUCATION CO

CPLA

54.17

49.60

9%

NORDIC AMERICAN TANKER

NAT

24.38

22.98

6%

FORMFACTOR INC

FORM

10.63

10.37

3%

AMYLIN PHARMACEUTICA

AMLN

13.06

13.30

-2%

BPZ Resources (BPZ) is an oil and gas drilling and exploration company. The stock is more than 30% below its 52-week high. The stock plunged at the beginning of March after its disappointing earnings. We like this company because George Soros has more than 4% of its outstanding shares. Analysts also have a target price of $8.09 for this stock. The stock has an upside potential of 70%.

Demand Media (DMD) shares were trading above $25 just three weeks ago. The stock plunged after Google (GOOG) changed its search engine ranking methodology. However, a Stifel Nicolaus analyst thinks that investors are overreacting. The consensus price target on this stock is $26.50 and the stock has an upside potential of 60%.

Another stock we like is Felcor Lodging (FCH). Felcor recently spent $140 Million on a Midtown Manhattan hotel by issuing shares at $6. Several insiders participated as well and bought significant amounts. They have significant incentives in place to make this work. Billionaire investor John Paulson owns nearly 5% of outstanding shares in this stock. Analysts also expect the stock reach nearly $8 in one year. We believe the economic recovery will benefit the travel market and Felcor and the stock will increase by more than 20% in one year.

Analysts don't upgrade all at the same time. We believe most of these firms will have additional analyst upgrades in the next few weeks and will perform better than the market. Short-term investors should consider buying all of these stocks, whereas long-term investors should focus on the stocks that have at least 20% upside potential.

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 Ready to Take Off