24 Stocks Under $5 Undervalued Relative to Target Price

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 |  Includes: ADPT-OLD, AZC, CAA, CPST, DENN, FBC, GFIG, GILD, GSS, HIMX, KRG, LEU, MTU, MWA, NRG, ODP, PWAV, QTM, SNV, SONS, TLAB, VTG, WTSL, XRIT
by: Kapitall

If you’re looking for low-priced stocks that may be undervalued, you might want to take a look at this list.

Here we report 24 stocks under $5 that are trading at steep discounts to target price, possibly indicating that they are undervalued from their fair values.

Although we will admit that target price does suffer from an upward bias, when a stock is trading at a steep discount to target price, it can indicate that it is undervalued.

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Do you think these stocks are fairly valued? Use this list as a starting-off point for your own analysis.

List sorted by potential upside implied from target price.

1. Standard Pacific Corp. (SPF): Residential Construction Industry. Market cap of $706.84M. Target price at $5 vs. current price at $3.58 (implies a potential upside of 39.66%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.29). The stock is a short squeeze candidate, with a short float at 12.9% (equivalent to 11.27 days of average volume). The stock has lost 23.5% over the last year.

2. USEC Inc. (USU): Industrial Metals & Minerals Industry. Market cap of $482.76M. Target price at $5.44 vs. current price at $3.96 (implies a potential upside of 37.37%. The stock is a short squeeze candidate, with a short float at 17.13% (equivalent to 8.53 days of average volume). The stock is currently stuck in a downtrend, trading 9.39% below its SMA20, 11.00% below its SMA50, and 23.93% below its SMA200.

3. YM BioSciences Inc. (YMI): Drug Manufacturers Industry. Market cap of $361.11M. Target price at $4.49 vs. current price at $3.27 (implies a potential upside of 37.31%. The stock has had a couple of great days, gaining 5.14% over the last week.

4. Flagstar Bancorp Inc. (NYSE:FBC): Savings & Loans Industry. Market cap of $747.74M. Target price at $1.85 vs. current price at $1.35 (implies a potential upside of 37.04%. The stock has lost 67.86% over the last year.

5. Office Depot, Inc. (NYSE:ODP): Specialty Retail, Other Industry. Market cap of $1.12B. Target price at $5.5 vs. current price at $4.02 (implies a potential upside of 36.82%. This is a risky stock that is significantly more volatile than the overall market (beta = 3.29). It's been a rough couple of days for the stock, losing 10.47% over the last week.

6. Vantage Drilling Company (NYSEMKT:VTG): Oil & Gas Drilling & Exploration Industry. Market cap of $533.08M. Target price at $2.49 vs. current price at $1.84 (implies a potential upside of 35.33%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.06). The stock has gained 30.5% over the last year.

7. Mitsubishi UFJ Financial Group, Inc. (NYSE:MTU): Money Center Banks Industry. Market cap of $63.25B. Target price at $6.04 vs. current price at $4.47 (implies a potential upside of 35.12%. The stock is currently stuck in a downtrend, trading 5.91% below its SMA20, 5.01% below its SMA50, and 9.82% below its SMA200. The stock has lost 8.78% over the last year.

8. Golden Star Resources, Ltd. (NYSEMKT:GSS): Gold Industry. Market cap of $687.64M. Target price at $3.58 vs. current price at $2.66 (implies a potential upside of 34.59%. The stock is currently stuck in a downtrend, trading 7.06% below its SMA20, 9.59% below its SMA50, and 34.56% below its SMA200. The stock has performed poorly over the last month, losing 14.19%.

9. Wet Seal Inc. (WTSLA): Apparel Stores Industry. Market cap of $433.11M. Target price at $5.67 vs. current price at $4.27 (implies a potential upside of 32.79%. The stock is a short squeeze candidate, with a short float at 18.26% (equivalent to 7.28 days of average volume). It's been a rough couple of days for the stock, losing 11.04% over the last week.

10. ADPT Corp (OTC:ADPT-OLD): Computer Based Systems Industry. Market cap of $345.29M. Target price at $3.77 vs. current price at $2.91 (implies a potential upside of 29.55%. The stock has lost 3.04% over the last year.

11. Capstone Turbine Corp. (NASDAQ:CPST): Industrial Electrical Equipment Industry. Market cap of $445.22M. Target price at $2.33 vs. current price at $1.81 (implies a potential upside of 28.73%. The stock is a short squeeze candidate, with a short float at 15.75% (equivalent to 8.19 days of average volume). The stock has gained 77.45% over the last year.

12. X-Rite, Incorporated (NASDAQ:XRIT): Photographic Equipment & Supplies Industry. Market cap of $401.34M. Target price at $6 vs. current price at $4.67 (implies a potential upside of 28.48%. The stock has had a couple of great days, gaining 7.11% over the last week.

13. Powerwave Technologies Inc. (NASDAQ:PWAV): Communication Equipment Industry. Market cap of $619.16M. Target price at $4.66 vs. current price at $3.66 (implies a potential upside of 27.32%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.88). The stock has performed poorly over the last month, losing 17.75%.

14. GFI Group Inc. (NYSE:GFIG): Investment Brokerage Industry. Market cap of $553.95M. Target price at $5.72 vs. current price at $4.5 (implies a potential upside of 27.11%. The stock is currently stuck in a downtrend, trading 5.63% below its SMA20, 5.74% below its SMA50, and 5.41% below its SMA200. The stock has lost 19.21% over the last year.

15. Denny's Corporation (NASDAQ:DENN): Restaurants Industry. Market cap of $381.83M. Target price at $4.9 vs. current price at $3.86 (implies a potential upside of 26.94%. The stock has gained 26.97% over the last year.

16. Synovus Financial Corp. (NYSE:SNV): Regional Banks Industry. Market cap of $1.84B. Target price at $2.96 vs. current price at $2.34 (implies a potential upside of 26.50%. The stock is a short squeeze candidate, with a short float at 10.94% (equivalent to 9.07 days of average volume). The stock has lost 10.34% over the last year.

17. Quantum Corporation (NYSE:QTM): Data Storage Devices Industry. Market cap of $673.95M. Target price at $3.71 vs. current price at $2.99 (implies a potential upside of 24.08%. This is a risky stock that is significantly more volatile than the overall market (beta = 3.2). The stock has had a couple of great days, gaining 5.28% over the last week.

18. Himax Technologies, Inc. (NASDAQ:HIMX): Semiconductor Industry. Market cap of $381.29M. Target price at $2.62 vs. current price at $2.13 (implies a potential upside of 23.00%. The stock might be undervalued at current levels, with a PEG ratio at 0.75, and P/FCF ratio at 8.88. The stock has performed poorly over the last month, losing 10.5%.

19. GenOn Energy, Inc. (NYSE:GEN): Electric Utilities Industry. Market cap of $3.01B. Target price at $4.78 vs. current price at $3.9 (implies a potential upside of 22.56%. The stock has had a couple of great days, gaining 8.03% over the last week.

20. Sonus Networks, Inc. (NASDAQ:SONS): Communication Equipment Industry. Market cap of $821.19M. Target price at $3.61 vs. current price at $2.95 (implies a potential upside of 22.37%. The stock is currently stuck in a downtrend, trading 8.39% below its SMA20, 14.71% below its SMA50, and 6.95% below its SMA200. The stock has performed poorly over the last month, losing 18.06%.

21. Mueller Water Products, Inc. (NYSE:MWA): Industrial Equipment & Components Industry. Market cap of $640.58M. Target price at $5.04 vs. current price at $4.12 (implies a potential upside of 22.33%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.4). The stock is a short squeeze candidate, with a short float at 6.27% (equivalent to 7.19 days of average volume). The stock has lost 0.24% over the last year.

22. Kite Realty Group Trust (NYSE:KRG): REIT Industry. Market cap of $312.72M. Target price at $5.96 vs. current price at $4.92 (implies a potential upside of 21.14%. The stock has gained 18.84% over the last year.

23. Tellabs Inc. (NASDAQ:TLAB): Communication Equipment Industry. Market cap of $1.66B. Target price at $5.53 vs. current price at $4.58 (implies a potential upside of 20.74%. The stock has performed poorly over the last month, losing 15.96%.

24. Augusta Resource Corp. (NYSEMKT:AZC): Industrial Metals & Minerals Industry. Market cap of $606.04M. Target price at $5.12 vs. current price at $4.27 (implies a potential upside of 19.91%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.12). The stock has had a couple of great days, gaining 9.21% over the last week. The stock has performed poorly over the last month, losing 11.96%.

*All 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.