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For stocks that may appear to be deeply undervalued, downside momentum could raise a flag...

Here we present 8 stocks that are relatively undervalued when comparing TTM P/E, PEG, and TTM P/CF to their industry averages. These stocks have also recently seen a bearish crossover of their 50-day simple moving average below their 200-day SMA, indicating downside technical momentum.



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. No surprises here, but the list has underperformed the rest of the market over the last month. To access a complete analysis of this list's recent performance, click here.



Do you think these stocks are undervalued? Or is this a list of value traps? Let us know in the comments below.

List sorted by market cap.

1. Wal-Mart Stores Inc. (NYSE:WMT)
: Discount, Variety Stores Industry. Market cap of $193.35B. SMA50 at $52.72 vs. SMA200 at $52.95 (current price at $55.25). TTM P/E at 13.2 vs. industry average of 17.69. PEG ratio at 1.28 vs. industry average of 1.44. TTM P/CF at 8.74 vs. industry average of 11.6. The stock has gained 5.18% over the last year.

2. Hewlett-Packard Company (NYSE:HPQ):
Diversified Computer Systems Industry. Market cap of $87.27B. SMA50 at $41.53 vs. SMA200 at $42.60 (current price at $40.47). TTM P/E at 10.26 vs. industry average of 18.7. PEG ratio at 1.07 vs. industry average of 1.41. TTM P/CF at 6.48 vs. industry average of 13.41. The stock has lost 19.76% over the last year.

3. Mitsubishi UFJ Financial Group, Inc. (NYSE:MTU): Money Center Banks Industry. Market cap of $68.35B. SMA50 at $4.88 vs. SMA200 at $4.96 (current price at $4.82). TTM P/E at 8.05 vs. industry average of 13.49. PEG ratio at 0.69 vs. industry average of 1.51. TTM P/CF at 5.79 vs. industry average of 11.9. The stock has lost 5.29% over the last year.

4. Carnival Corporation (NYSE:CCL):
General Entertainment Industry. Market cap of $30.72B. SMA50 at $39.16 vs. SMA200 at $39.99 (current price at $38.43). TTM P/E at 15.91 vs. industry average of 25.92. PEG ratio at 1.25 vs. industry average of 1.98. TTM P/CF at 9.12 vs. industry average of 15.31. The stock has lost 3.12% over the last year.

5. Logitech International SA (NASDAQ:LOGI): Computer Peripherals Industry. Market cap of $2.56B. SMA50 at $16.65 vs. SMA200 at $17.64 (current price at $13.40). TTM P/E at 18.58 vs. industry average of 18.7. PEG ratio at 1.31 vs. industry average of 1.41. TTM P/CF at 11.67 vs. industry average of 13.41. The stock is a short squeeze candidate, with a short float at 14.57% (equivalent to 14.37 days of average volume). The stock has lost 13.73% over the last year.

6. Bally Technologies, Inc. (NYSE:BYI): Gaming Activities Industry. Market cap of $2.08B. SMA50 at $37.20 vs. SMA200 at $37.20 (current price at $38.75). TTM P/E at 21.54 vs. industry average of 25.92. PEG ratio at 1.44 vs. industry average of 1.98. TTM P/CF at 11.91 vs. industry average of 15.31. The stock is a short squeeze candidate, with a short float at 12.52% (equivalent to 8.01 days of average volume). The stock has lost 14.92% over the last year.

7. RF Micro Devices Inc. (NASDAQ:RFMD): Semiconductor Industry. Market cap of $1.74B. SMA50 at $6.47 vs. SMA200 at $6.50 (current price at $6.18). TTM P/E at 14.34 vs. industry average of 19.32. PEG ratio at 0.91 vs. industry average of 1.02. TTM P/CF at 9.22 vs. industry average of 13.48. This is a risky stock that is significantly more volatile than the overall market (beta = 2.49). The stock has gained 12.28% over the last year.

8. P.F. Chang's China Bistro, Inc. (NASDAQ:PFCB):
Restaurants Industry. Market cap of $882.38M. SMA50 at $45.38 vs. SMA200 at $46.15 (current price at $38.85). TTM P/E at 18.49 vs. industry average of 25.92. PEG ratio at 1.22 vs. industry average of 1.98. TTM P/CF at 7.02 vs. industry average of 15.31. The stock is a short squeeze candidate, with a short float at 23.33% (equivalent to 10.28 days of average volume). It's been a rough couple of days for the stock, losing 15.15% over the last week.

*Price multiples sourced from Fidelity, all other 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.

Source: Value Traps? 8 Undervalued Stocks With Bearish SMA50/SMA200 Crossovers