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If you follow the value investment philosophy, then this may be an interesting list you to begin your own research.

To construct this list we looked for stocks that had seen an increase in its net profit margin over the last twelve months in comparison to the previous trailing twelve months (TTM). We then focused on those companies that had enough cash in hand to cover long-term liabilities and trading at a discount to analysts’ estimates. Lastly, we focused on those that had a Piotroski score equal to or above 8.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-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 information, which of these stocks do you think will outperform the market?

1. Micron Technology Inc. (MU): Semiconductor Industry. Market cap of $8.96B. TTM net profit margin at 18.03% vs. prior TTM net profit margin at 3.54%. Cash and equivalents at $2.18B vs. long term debt at $1.32B. This stock is trading at a discount of 37.89%, given its current price of $8.67 and target price of $13.96. Piotroski score at 8. It's been a rough couple of days for the stock, losing 12.25% over the last week.

2. Silver Wheaton Corp. (SLW): Silver Industry. Market cap of $11.90B. TTM net profit margin at 74.18% vs. prior TTM net profit margin at 53.32%. Cash and equivalents at $564.08M vs. long term debt at $195.89M. This stock is trading at a discount of 37.85%, given its current price of $32.71 and target price of $52.63. Piotroski score at 8. It's been a rough couple of days for the stock, losing 8.3% over the last week.

3. RF Micro Devices Inc. (RFMD): Semiconductor Industry. Market cap of $1.63B. TTM net profit margin at 11.84% vs. prior TTM net profit margin at 7.26%. Cash and equivalents at $291.64M vs. long term debt at $177.34M. This stock is trading at a discount of 28.8%, given its current price of $5.91 and target price of $8.3. Piotroski score at 8. This is a risky stock that is significantly more volatile than the overall market (beta = 2.46). Might be undervalued at current levels, with a PEG ratio at 0.83, and P/FCF ratio at 8.7. It's been a rough couple of days for the stock, losing 6.35% over the last week.

4. Vishay Intertechnology Inc. (VSH): Semiconductor Industry. Market cap of $2.49B. TTM net profit margin at 14.04% vs. prior TTM net profit margin at 0.81%. Cash and equivalents at $1.01B vs. long term debt at $432.0M. This stock is trading at a discount of 28.0%, given its current price of $14.76 and target price of $20.5. Piotroski score at 8. The stock is a short squeeze candidate, with a short float at 11.08% (equivalent to 6.52 days of average volume). It's been a rough couple of days for the stock, losing 5.1% over the last week.

5. 3D Systems Corporation (DDD): Application Software Industry. Market cap of $901.84M. TTM net profit margin at 13.84% vs. prior TTM net profit margin at 4.35%. Cash and equivalents at $70.83M vs. long term debt at $7.66M. This stock is trading at a discount of 25.22%, given its current price of $17.76 and target price of $23.75. Piotroski score at 8. It's been a rough couple of days for the stock, losing 10.01% over the last week. The stock has had a good month, gaining .

6. Diodes Incorporated (DIOD): Semiconductor Industry. Market cap of $1.27B. TTM net profit margin at 13.31% vs. prior TTM net profit margin at 7.34%. Cash and equivalents at $278.74M vs. long term debt at $4.56M. This stock is trading at a discount of 24.32%, given its current price of $28.0 and target price of $37.0. Piotroski score at 8. This is a risky stock that is significantly more volatile than the overall market (beta = 2.1). The stock has performed poorly over the last month, losing 14.78%.

7. Teradyne Inc. (TER): Semiconductor Equipment & Materials Industry. Market cap of $2.74B. TTM net profit margin at 24.01% vs. prior TTM net profit margin at 0.58%. Cash and equivalents at $855.84M vs. long term debt at $151.75M. This stock is trading at a discount of 22.58%, given its current price of $14.74 and target price of $19.04. Piotroski score at 8. The stock is a short squeeze candidate, with a short float at 12.8% (equivalent to 5.8 days of average volume). It's been a rough couple of days for the stock, losing 7.56% over the last week.

8. Applied Materials Inc. (AMAT): Semiconductor Equipment & Materials Industry. Market cap of $17.18B. TTM net profit margin at 14.48% vs. prior TTM net profit margin at 6.32%. Cash and equivalents at $3.31B vs. long term debt at $204.0M. This stock is trading at a discount of 21.88%, given its current price of $12.89 and target price of $16.5. Piotroski score at 9. It's been a rough couple of days for the stock, losing 5.44% over the last week.

*Data sourced from Screener.co and Finviz.

Source: Value Ideas: 8 Profitable Companies Deeply Undervalued by Analyst Estimates