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Looking for momentum plays that also offer good value? Here’s a list of ideas for your search...

Here we present 6 stocks undervalued by the price to earnings growth ratio (PEG < 1). All of these stocks are currently in rally mode, trading above their 20-day, 50-day, and 200-day moving averages. These stocks have also seen significant drops in put/call ratio over the last two weeks, indicating bullish options market sentiment.



Do you think these stocks have the potential to keep climbing? Use this list as a starting-off point for your own analysis.

List sorted by decrease in put/call ratio.

1. Aetna Inc. (AET): Health Care Plans Industry. Market cap of $15.92B. PEG at 0.91. The stock is currently 8.45% above its 20-day moving average, 12.07% above its 50-day MA, and 29.43% above its 200-day MA. Put/Call ratio has decreased 28.72% over the last ten trading days (from 0.94 to 0.67). The stock has had a good month, gaining 11.32%.



2. Companhia de Saneamento Basico do Estado de Sao Paulo (SBS):
Foreign Utilities Industry. Market cap of $6.65B. PEG at 0.97. The stock is currently 1.47% above its 20-day moving average, 6.89% above its 50-day MA, and 21.93% above its 200-day MA. Put/Call ratio has decreased 28.36% over the last ten trading days (from 0.67 to 0.48). The stock has gained 59.73% over the last year.



3. Alcoa, Inc. (AA): Aluminum Industry. Market cap of $18.09B. PEG at 0.69. The stock is currently 0.80% above its 20-day moving average, 1.93% above its 50-day MA, and 19.98% above its 200-day MA. Put/Call ratio has decreased 26.87% over the last ten trading days (from 1.34 to 0.98). This is a risky stock that is significantly more volatile than the overall market (beta = 2.07). The stock has gained 43.42% over the last year.



4. Tim Hortons Inc. (THI): Restaurants Industry. Market cap of $8.01B. PEG at 0.85. The stock is currently 2.94% above its 20-day moving average, 6.52% above its 50-day MA, and 21.82% above its 200-day MA. Put/Call ratio has decreased 23.40% over the last ten trading days (from 0.47 to 0.36). The stock has gained 54.66% over the last year.

5. AMERIGROUP Corporation (AGP): Health Care Plans Industry. Market cap of $3.34B. PEG at 0.92. The stock is currently 4.93% above its 20-day moving average, 9.55% above its 50-day MA, and 41.03% above its 200-day MA. Put/Call ratio has decreased 21.31% over the last ten trading days (from 0.61 to 0.48). The stock is a short squeeze candidate, with a short float at 14.36% (equivalent to 8.35 days of average volume). The stock has gained 92.51% over the last year.

6. Advance America, Cash Advance Centers Inc. (AEA): Credit Services Industry. Market cap of $362.08M. PEG at 0.67. The stock is currently 11.26% above its 20-day moving average, 12.73% above its 50-day MA, and 20.76% above its 200-day MA. Put/Call ratio has decreased 10.81% over the last ten trading days (from 0.37 to 0.33). This is a risky stock that is significantly more volatile than the overall market (beta = 3.02). The stock has had a good month, gaining 11.95%.

*Options data sourced from Schaeffer’s, 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: 6 Undervalued Rally Stocks With Bullish Options Trends