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If you prefer investing in stocks where you know the company has enough cash to cover several quarters of operating expenses, you might be interested in this list. Here we report 16 companies that are undervalued relative to earnings growth, with PEG < 1. These stocks also have high cash holdings relative to their average quarterly operating expense over the last year.

All stocks listed have more than two times the cash for their average quarterly operating expense. This indicates that the company can operate for more than 2 quarters without needing to generate additional revenue. Use this list as a starting-off point for your own analysis. List sorted by cash/avg. quarterly operating expense.

1. NetEase.com, Inc. (NASDAQ:NTES): Internet Software & Services Industry. Market cap of $5.66B. PEG at 0.89. Current cash holdings at $9.48B vs. average quarterly operating expenses over the last four quarters at $893.21M. Cash/Avg. Quarterly Operating Expense at 10.61, i.e. the company can pay 10.61 quarters' worth of average quarterly operating expense without needing to generate revenue. The stock has performed poorly over the last month, losing 12.55%.

2. Corning Inc. (NYSE:GLW): Diversified Electronics Industry. Market cap of $30.69B. PEG at 0.75. Current cash holdings at $6.30B vs. average quarterly operating expenses over the last four quarters at $1.29B. Cash/Avg. Quarterly Operating Expense at 4.87, i.e. the company can pay 4.87 quarters' worth of average quarterly operating expense without needing to generate revenue. The stock has gained 16.65% over the last year.

3. Microsoft Corporation (NASDAQ:MSFT): Application Software Industry. Market cap of $203.65B. PEG at 0.89. Current cash holdings at $50.15B vs. average quarterly operating expenses over the last four quarters at $10.42B. Cash/Avg. Quarterly Operating Expense at 4.81, i.e. the company can pay 4.81 quarters' worth of average quarterly operating expense without needing to generate revenue. The stock has lost 5.15% over the last year.

4. Marvell Technology Group Ltd. (NASDAQ:MRVL): Semiconductor Industry. Market cap of $8.68B. PEG at 0.7. Current cash holdings at $2.93B vs. average quarterly operating expenses over the last four quarters at $677.68M. Cash/Avg. Quarterly Operating Expense at 4.32, i.e. the company can pay 4.32 quarters' worth of average quarterly operating expense without needing to generate revenue. The stock has performed poorly over the last month, losing 10.27%.

5. KLA-Tencor Corporation (NASDAQ:KLAC): Semiconductor Equipment & Materials Industry. Market cap of $6.82B. PEG at 0.65. Current cash holdings at $1.84B vs. average quarterly operating expenses over the last four quarters at $466.26M. Cash/Avg. Quarterly Operating Expense at 3.95, i.e. the company can pay 3.95 quarters' worth of average quarterly operating expense without needing to generate revenue. The stock has gained 38.86% over the last year.

6. SanDisk Corp. (NASDAQ:SNDK): Semiconductor Industry. Market cap of $10.74B. PEG at 0.67. Current cash holdings at $2.97B vs. average quarterly operating expenses over the last four quarters at $884.37M. Cash/Avg. Quarterly Operating Expense at 3.36, i.e. the company can pay 3.36 quarters' worth of average quarterly operating expense without needing to generate revenue. The stock has gained 4.38% over the last year.

7. ORIX Corp. (NYSE:IX): Conglomerates Industry. Market cap of $9.81B. PEG at 0.45. Current cash holdings at $732.13B vs. average quarterly operating expenses over the last four quarters at $224.04B. Cash/Avg. Quarterly Operating Expense at 3.27, i.e. the company can pay 3.27 quarters' worth of average quarterly operating expense without needing to generate revenue. This is a risky stock that is significantly more volatile than the overall market (beta = 2.34).

8. Southern Copper Corp. (NYSE:SCCO): Copper Industry. Market cap of $29.53B. PEG at 0.65. Current cash holdings at $2.19B vs. average quarterly operating expenses over the last four quarters at $693.83M. Cash/Avg. Quarterly Operating Expense at 3.16, i.e. the company can pay 3.16 quarters' worth of average quarterly operating expense without needing to generate revenue. The stock has gained 31.44% over the last year.

9. Gilead Sciences Inc. (NASDAQ:GILD): Biotechnology Industry. Market cap of $31.81B. PEG at 0.83. Current cash holdings at $3.01B vs. average quarterly operating expenses over the last four quarters at $1.02B. Cash/Avg. Quarterly Operating Expense at 2.95, i.e. the company can pay 2.95 quarters' worth of average quarterly operating expense without needing to generate revenue.

10. Ryanair Holdings plc (NASDAQ:RYAAY): Regional Airlines Industry. Market cap of $8.53B. PEG at 0.87. Current cash holdings at $2.23B vs. average quarterly operating expenses over the last four quarters at $768.95M. Cash/Avg. Quarterly Operating Expense at 2.90, i.e. the company can pay 2.90 quarters' worth of average quarterly operating expense without needing to generate revenue.

11. Millicom International Cellular SA (MICC): Telecom Services Industry. Market cap of $11.36B. PEG at 0.42. Current cash holdings at $1.22B vs. average quarterly operating expenses over the last four quarters at $480.60M. Cash/Avg. Quarterly Operating Expense at 2.54, i.e. the company can pay 2.54 quarters' worth of average quarterly operating expense without needing to generate revenue. It's been a rough couple of days for the stock, losing 5.19% over the last week.

12. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM): Semiconductor Industry. Market cap of $68.14B. PEG at 0.8. Current cash holdings at $163.41B vs. average quarterly operating expenses over the last four quarters at $67.13B. Cash/Avg. Quarterly Operating Expense at 2.43, i.e. the company can pay 2.43 quarters' worth of average quarterly operating expense without needing to generate revenue. The stock offers a good dividend, and appears to have good liquidity to back it up -- dividend yield at 3.54%, current ratio at 1.97, and quick ratio at 1.72. The stock has gained 44.19% over the last year.

13. Cameco Corp. (NYSE:CCJ): Industrial Metals & Minerals Industry. Market cap of $10.81B. PEG at 0.62. Current cash holdings at $1.48B vs. average quarterly operating expenses over the last four quarters at $613.44M. Cash/Avg. Quarterly Operating Expense at 2.42, i.e. the company can pay 2.42 quarters' worth of average quarterly operating expense without needing to generate revenue. The stock has gained 14.88% over the last year.

14. NII Holdings Inc. (NASDAQ:NIHD): Wireless Communications Industry. Market cap of $7.16B. PEG at 0.96. Current cash holdings at $2.78B vs. average quarterly operating expenses over the last four quarters at $1.25B. Cash/Avg. Quarterly Operating Expense at 2.23, i.e. the company can pay 2.23 quarters' worth of average quarterly operating expense without needing to generate revenue. The stock has gained 20.61% over the last year.

15. Lam Research Corporation (NASDAQ:LRCX): Semiconductor Equipment & Materials Industry. Market cap of $5.67B. PEG at 0.77. Current cash holdings at $1.26B vs. average quarterly operating expenses over the last four quarters at $590.79M. Cash/Avg. Quarterly Operating Expense at 2.13, i.e. the company can pay 2.13 quarters' worth of average quarterly operating expense without needing to generate revenue. The stock has gained 23.48% over the last year.

16. Las Vegas Sands Corp. (NYSE:LVS): Resorts & Casinos Industry. Market cap of $29.02B. PEG at 0.77. Current cash holdings at $3.13B vs. average quarterly operating expenses over the last four quarters at $1.53B. Cash/Avg. Quarterly Operating Expense at 2.05, i.e. the company can pay 2.05 quarters' worth of average quarterly operating expense without needing to generate revenue. The stock is currently stuck in a downtrend, trading 8.71% below its SMA20, 7.25% below its SMA50, and 5.35% below its SMA200. The stock has performed poorly over the last month, losing 13.44%.

Cash and operating expense data sourced from Google Finance, all other data sourced from Finviz.

Source: 16 Undervalued Stocks With High Cash Relative to Operating Expenses