For this list we looked for U.S. based stocks with market cap above $300M, reaching new 52-week highs during recent trading sessions.
Additionally, all of these names are undervalued relative to their industry when compared to the following three metrics:
- Trailing twelve month price to earnings ratio (TTM P/E)
- Price to earnings to growth ratio (PEG)
- Price to cash flow ratio
We also created an equal weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Considering this valuation metrics, performance data and your opinion about the markets, which of these stocks do you think is more likely to continue moving higher?
1. Domino's Pizza, Inc. (NYSE:DPZ): Restaurants Industry. Market cap of $1.14B. TTM P/E at 12.89 vs. industry average 30.02. PEG at 1.32 vs. industry average 2.27. Price/Cash flow at 9.88 vs. industry average 15.86. The stock has gained 15.57% over the last year.
2. Express Inc. (NYSE:EXPR): Apparel Stores Industry. Market cap of $1.91B. TTM P/E at 14.83 vs. industry average 17.99. PEG at 0.87 vs. industry average 1.25. Price/Cash flow at 9.92 vs. industry average 11.99. The stock has had a good month, gaining 10.08%.
3. HealthSpring Inc. (Pending:HS): Health Care Plans Industry. Market cap of $2.50B. TTM P/E at 12.29 vs. industry average 17.34. PEG at 1.03 vs. industry average 1.23. Price/Cash flow at 10.28 vs. industry average 11.57. Exhibiting strong upside momentum -- currently trading 8.9% above its SMA20, 12.52% above its SMA50, and 49.2% above its SMA200. The stock has had a couple of great days, gaining 10.57% over the last week.
4. Intel Corporation (NASDAQ:INTC): Semiconductor Industry. Market cap of $123.37B. TTM P/E at 10.51 vs. industry average 20.1. PEG at 0.89 vs. industry average 1.27. Price/Cash flow at 7.41 vs. industry average 12.7. Offers a good dividend, and appears to have good liquidity to back it up -- dividend yield at 3.16%, current ratio at 1.97, and quick ratio at 1.62.
5. Matthews International Corporation (NASDAQ:MATW): Metal Fabrication Industry. Market cap of $1.18B. TTM P/E at 16.89 vs. industry average 22.96. PEG at 1.25 vs. industry average 1.75. Price/Cash flow at 12.91 vs. industry average 16.51. The stock is a short squeeze candidate, with a short float at 5.78% (equivalent to 20.66 days of average volume). The stock has had a couple of great days, gaining 8.7% over the last week.
6. Oracle Corp. (NYSE:ORCL): Application Software Industry. Market cap of $184.05B. TTM P/E at 24.09 vs. industry average 36.14. PEG at 1.59 vs. industry average 1.87. Price/Cash flow at 17.43 vs. industry average 23.75. The stock has gained 40.86% over the last year.
*Price multiples sourced from Fidelity, other relevant data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.