21 Undervalued Stocks With Growing Profits, Solid Cash Coverings

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 |  Includes: A, AMAT, BID, BRCM, EWBC, FCS, ITMN, JNPR, KGC, LAZ, MU, NDSN, NGD, SLW, SSRI, SWC, TER, UTHR, VC, VSH, YHOO
by: Kapitall

If you’re looking for steeply discounted stocks with the cash coverings to take on an unsteady market, then this list may be of interest to you.

Here we present 21 stocks undervalued relative to their analyst target price (used as a proxy for fair value) with significant cash vs. long-term debt, Furthermore, these names have significantly improved their Trailing Twelve Month (TTM) Net Profit Margin from the previous year.

Although target price is known to suffer from an upward bias, whenever there are steep discounts from a company’s target price, it may be undervalued and worth a closer look.

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.

Do you think these names will rise to their target prices and continue to accumulate the free cash flow to cover debts? Use the data below to start your own analysis.

List sorted by discount to target price.

1. Micron Technology Inc. (NASDAQ:MU): Semiconductor Industry. Market cap of $9.05B. Prior year's TTM Net Profit Margin at 3.54% vs. current TTM Net Profit Margin at 18.03%. Current Price at $8.95 vs. Target price of $14.34 (implies a discount of 60.20%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 1.65 times. It's been a rough couple of days for the stock, losing 9.78% over the last week.

2. Silver Standard Resources Inc. (NASDAQ:SSRI): Silver Industry. Market cap of $2.19B. Prior year's TTM Net Profit Margin at -242.43% vs. current TTM Net Profit Margin at 308.44%. Current Price at $27.12 vs. Target price of $42.92 (implies a discount of 58.24%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 2.25 times. It's been a rough couple of days for the stock, losing 6.99% over the last week.

3. Stillwater Mining Co. (NYSE:SWC): Industrial Metals & Minerals Industry. Market cap of $1.99B. Prior year's TTM Net Profit Margin at 3.71% vs. current TTM Net Profit Margin at 12.35%. Current Price at $20.03 vs. Target price of $31.33 (implies a discount of 56.43%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 1.12 times. This is a risky stock that is significantly more volatile than the overall market (beta = 2.12). The stock has gained 75.45% over the last year.

4. Silver Wheaton Corp. (NYSE:SLW): Silver Industry. Market cap of $11.89B. Prior year's TTM Net Profit Margin at 53.32% vs. current TTM Net Profit Margin at 74.18%. Current Price at $33.7 vs. Target price of $52.63 (implies a discount of 56.16%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 2.88 times. It's been a rough couple of days for the stock, losing 7.88% over the last week.

5. Kinross Gold Corporation (NYSE:KGC): Gold Industry. Market cap of $17.73B. Prior year's TTM Net Profit Margin at 20.65% vs. current TTM Net Profit Margin at 31.72%. Current Price at $15.44 vs. Target price of $22.89 (implies a discount of 48.26%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 3.81 times. The stock has lost 8.39% over the last year.

6. Sotheby's (NYSE:BID): Specialty Retail Industry. Market cap of $2.63B. Prior year's TTM Net Profit Margin at 4.73% vs. current TTM Net Profit Margin at 20.86%. Current Price at $38.66 vs. Target price of $57.06 (implies a discount of 47.59%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 1.14 times. This is a risky stock that is significantly more volatile than the overall market (beta = 2.29). It's been a rough couple of days for the stock, losing 8.23% over the last week.

7. New Gold, Inc. (NYSEMKT:NGD): Nonmetallic Mineral Mining Industry. Market cap of $3.76B. Prior year's TTM Net Profit Margin at -47.88% vs. current TTM Net Profit Margin at 23.74%. Current Price at $9.28 vs. Target price of $13.32 (implies a discount of 43.57%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 2.17 times. It's been a rough couple of days for the stock, losing 6.48% over the last week.

8. Visteon Corp. (NYSE:VC): Auto Parts Industry. Market cap of $3.08B. Prior year's TTM Net Profit Margin at 5.84% vs. current TTM Net Profit Margin at 12.06%. Current Price at $61.04 vs. Target price of $83.50 (implies a discount of 36.80%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 1.71 times. The stock has performed poorly over the last month, losing 10.03%.

9. Vishay Intertechnology Inc. (NYSE:VSH): Semiconductor Industry. Market cap of $2.46B. Prior year's TTM Net Profit Margin at 0.81% vs. current TTM Net Profit Margin at 14.04%. Current Price at $15.06 vs. Target price of $20.50 (implies a discount of 36.12%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 2.33 times. The stock is a short squeeze candidate, with a short float at 11.08% (equivalent to 6.48 days of average volume). It's been a rough couple of days for the stock, losing 6.01% over the last week.

10. Juniper Networks, Inc. (NYSE:JNPR): Networking & Communication Devices Industry. Market cap of $16.77B. Prior year's TTM Net Profit Margin at 8.21% vs. current TTM Net Profit Margin at 13.65%. Current Price at $32.62 vs. Target price of $43.91 (implies a discount of 34.60%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 3.44 times. It's been a rough couple of days for the stock, losing 15.11% over the last week.

11. Lazard Ltd. (NYSE:LAZ): Asset Management Industry. Market cap of $4.31B. Prior year's TTM Net Profit Margin at -7.80% vs. current TTM Net Profit Margin at 14.76%. Current Price at $36.02 vs. Target price of $48.36 (implies a discount of 34.27%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 1.14 times. It's been a rough couple of days for the stock, losing 7.86% over the last week.

12. East West Bancorp, Inc. (NASDAQ:EWBC): Regional Banks Industry. Market cap of $2.73B. Prior year's TTM Net Profit Margin at 12.48% vs. current TTM Net Profit Margin at 21.73%. Current Price at $18.42 vs. Target price of $24.28 (implies a discount of 31.80%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 4.73 times. It's been a rough couple of days for the stock, losing 7.32% over the last week.

13. Broadcom Corp. (NASDAQ:BRCM): Semiconductor Circuits Industry. Market cap of $18.23B. Prior year's TTM Net Profit Margin at 7.20% vs. current TTM Net Profit Margin at 15.33%. Current Price at $34.27 vs. Target price of $45.04 (implies a discount of 31.42%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 3.27 times. It's been a rough couple of days for the stock, losing 6.85% over the last week.

14. Teradyne Inc. (NYSE:TER): Semiconductor Equipment & Materials Industry. Market cap of $2.75B. Prior year's TTM Net Profit Margin at 0.58% vs. current TTM Net Profit Margin at 24.01%. Current Price at $14.8 vs. Target price of $19.04 (implies a discount of 28.64%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 5.64 times. The stock is a short squeeze candidate, with a short float at 12.8% (equivalent to 5.68 days of average volume). It's been a rough couple of days for the stock, losing 5.12% over the last week.

15. InterMune Inc. (NASDAQ:ITMN): Biotechnology Industry. Market cap of $2.01B. Prior year's TTM Net Profit Margin at -225.50% vs. current TTM Net Profit Margin 47.91%. Current Price at $34.24 vs. Target price of $43.67 (implies a discount of 27.53%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 2.99 times. This is a risky stock that is significantly more volatile than the overall market (beta = 2.26). The stock has performed poorly over the last month, losing 19.65%.

16. Fairchild Semiconductor International Inc. (NASDAQ:FCS): Semiconductor Circuits Industry. Market cap of $2.16B. Prior year's TTM Net Profit Margin at 1.01% vs. current TTM Net Profit Margin 10.65%. Current Price at $17.06 vs. Target price of $21.75 (implies a discount of 27.49%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 1.35 times. This is a risky stock that is significantly more volatile than the overall market (beta = 2.43). The stock has performed poorly over the last month, losing 14.55%.

17. Nordson Corporation (NASDAQ:NDSN): Diversified Machinery Industry. Market cap of $3.45B. Prior year's TTM Net Profit Margin at -13.74% vs. current TTM Net Profit Margin 18.98%. Current Price at $50.79 vs. Target price of $64.70 (implies a discount of 27.39%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 1.29 times. The stock has gained 68.58% over the last year.

18. Yahoo! Inc. (NASDAQ:YHOO): Internet Information Providers Industry. Market cap of $20.13B. Prior year's TTM Net Profit Margin at 7.87% vs. current TTM Net Profit Margin 12.90%. Current Price at $15.44 vs. Target price of $19.61 (implies a discount of 26.99%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 20.13 times. The stock has performed poorly over the last month, losing 16.17%.

19. Applied Materials Inc. (NASDAQ:AMAT): Semiconductor Equipment & Materials Industry. Market cap of $16.99B. Prior year's TTM Net Profit Margin at 6.32% vs. current TTM Net Profit Margin at 14.48%. Current Price at $13.03 vs. Target price of $16.50 (implies a discount of 26.63%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 16.22 times. The stock has performed poorly over the last month, losing 13.32%.

20. United Therapeutics Corp. (NASDAQ:UTHR): Drug Manufacturers Industry. Market cap of $3.43B. Prior year's TTM Net Profit Margin at 6.01% vs. current TTM Net Profit Margin 16.14%. Current Price at $59.51 vs. Target price of $75.05 (implies a discount of 26.11%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt 9.91 times. The stock is a short squeeze candidate, with a short float at 9.99% (equivalent to 7.56 days of average volume). It's been a rough couple of days for the stock, losing 8.82% over the last week.

21. Agilent Technologies Inc. (NYSE:A): Scientific & Technical Instruments Industry. Market cap of $16.24B. Prior year's TTM Net Profit Margin at 3.97% vs. current TTM Net Profit Margin 14.46%. Current Price at $47.7 vs. Target price of $59.75 (implies a discount of 25.26%). Cash and Equivalents for most recent quarter are capable of covering the Long Term Debt (NYSE:I) 1.39 times. It's been a rough couple of days for the stock, losing 5.12% over the last week.

*Data sourced from Screener.co and Reuters on Tuesday, June 7th.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.