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Do you enjoy the hunt for undervalued stocks? If so, the following list may be of interest to you.

To create this screen of stocks we searched for names with a market cap over $300M and a Price/Earnings Growth ratio between 0.7 and 1–-a signal of possible undervalued conditions.

We further analyzed the names by those undervalued by price relative to their current year earnings per share (EPS) estimates. In evaluating this metric we worked off of the theoretical assumption that P/E equals a constant, K. It follows that there should be a linear relationship between price changes and Earnings per share changes. Thus,

If P/E = K
Then P = (K)(E)

If there is a mismatch between growth rates in projected earnings per share values and price, a mis-pricing may have occurred, presenting an opportunity to value investors. (Note: There is no reason to be believe there is indeed a constant value for P/E--the simplifying assumption is made to construct a screen. The goal here is to give you a starting point for your own analysis)

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.



List sorted by % distance between changes.

1. Spreadtrum Communications Inc. (NASDAQ:SPRD): Semiconductor Industry. Market cap of $708.60M. PEG ratio at 0.75. Over the last 30 days, the current year EPS consensus has increased by 0.98% (from 2.04 to 2.06) while price has decreased over 30 days by 26.02% (from $19.79 to $14.64). It's been a rough couple of days for the stock, losing 17.62% over the last week.

2. Giant Interactive Group, Inc. (NYSE:GA): Business Services Industry. Market cap of $1.68B. PEG ratio at 0.88. Over the last 30 days, the current year EPS consensus has increased by 6.56% (from 0.61 to 0.65) while price has decreased over 30 days by 16.4% (from $8.66 to $7.24). It's been a rough couple of days for the stock, losing 5.84% over the last week.

3. Perry Ellis International Inc. (NASDAQ:PERY):
Textile Clothing Industry. Market cap of $348.55M. PEG ratio at 0.79. Over the last 30 days, the current year EPS consensus has increased by 3.78% (from 2.38 to 2.47) while price has decreased over 30 days by 13.82% (from $28.87 to $24.88). This is a risky stock that is significantly more volatile than the overall market (beta = 2.13). It's been a rough couple of days for the stock, losing 10.27% over the last week.

4. Jos. A Bank Clothiers Inc. (NASDAQ:JOSB): Apparel Stores Industry. Market cap of $1.25B. PEG ratio at 0.96. Over the last 30 days, the current year EPS consensus has increased by 0.58% (from 3.46 to 3.48) while price has decreased over 30 days by 16.5% (from$ 54.8 to $45.76). The stock is a short squeeze candidate, with a short float at 18.51% (equivalent to 9.73 days of average volume). It's been a rough couple of days for the stock, losing 5.84% over the last week.

5. AutoNavi Holdings Limited (NASDAQ:AMAP):
Application Software Industry. Market cap of $703.15M. PEG ratio at 0.78. Over the last 30 days, the current year EPS consensus has increased by 5.88% (from 0.68 to 0.72) while price has decreased over 30 days by 10.86% (from $17.5 to $15.6). The stock is currently stuck in a downtrend, trading -8.38% below its SMA20, -12.58% below its SMA50, and -11.91% below its SMA200. It's been a rough couple of days for the stock, losing 9.13% over the last week.

6. Shuffle Master Inc. (NASDAQ:SHFL):
Diversified Machinery Industry. Market cap of $490.87M. PEG ratio at 0.82. Over the last 30 days, the current year EPS consensus has increased by 1.82% (from 0.55 to 0.56) while price has decreased over 30 days by 13.84% (from $10.55 to $9.09). The stock is currently stuck in a downtrend, trading -12.83% below its SMA20, -14.49% below its SMA50, and -9.65% below its SMA200. It's been a rough couple of days for the stock, losing 11.86% over the last week.

7. Cresud Inc. (NASDAQ:CRESY):
Farm Products Industry. Market cap of $729.01M. PEG ratio at 0.89. Over the last 30 days, the current year EPS consensus has increased by 3.08% (from 0.65 to 0.67) while price has decreased over 30 days by 12.57% (from $16.95 to $14.82). The stock is currently stuck in a downtrend, trading -10.63% below its SMA20, -13.12% below its SMA50, and -14.98% below its SMA200. It's been a rough couple of days for the stock, losing 13.14% over the last week.

8. IRSA Investments and Representations Inc. (NYSE:IRS): Real Estate Development Industry. Market cap of $755.20M. PEG ratio at 0.92. Over the last 30 days, the current year EPS consensus has increased by 15.46% (from 0.97 to 1.12) while price has increased over 30 days by 1.7% (from $12.91 to $13.13). The stock has had a couple of great days, gaining 5.16% over the last week.

9. DG FastChannel, Inc. (NASDAQ:DGIT): Business Services Industry. Market cap of $814.35M. PEG ratio at 0.91. Over the last 30 days, the current year EPS consensus has increased by 0.46% (from 2.19 to 2.2) while price has decreased over 30 days by 12.65% (from $33.68 to $29.42). The stock is a short squeeze candidate, with a short float at 10.93% (equivalent to 11.46 days of average volume). It's been a rough couple of days for the stock, losing 9.48% over the last week.

10. Safe Bulkers, Inc. (NYSE:SB):
Shipping Industry. Market cap of $506.79M. PEG ratio at 0.9. Over the last 30 days, the current year EPS consensus has increased by 0.68% (from 1.46 to 1.47) while price has decreased over 30 days by 12.36% (from $8.17 to $7.16). The stock is currently stuck in a downtrend, trading -5.57% below its SMA20, -10.87% below its SMA50, and -11.43% below its SMA200. It's been a rough couple of days for the stock, losing 7.14% over the last week.

11. Kadant Inc. (NYSE:KAI): Paper & Paper Products Industry. Market cap of $322.88M. PEG ratio at 0.76. Over the last 30 days, the current year EPS consensus has increased by 0.46% (from 2.18 to 2.19) while price has decreased over 30 days by 11.59% (from $30.1 to $26.61). The stock has performed poorly over the last month, losing 16.19%.

12. Textainer Group Holdings Limited (NYSE:TGH):
Rental & Leasing Services Industry. Market cap of $1.38B. PEG ratio at 0.89. Over the last 30 days, the current year EPS consensus has increased by 1.61% (from 3.1 to 3.15) while price has decreased over 30 days by 10.18% (from $31.72 to $28.49). The stock has performed poorly over the last month, losing 14.29%.

13. GT Solar International, Inc. (SOLR):
Semiconductor Industry. Market cap of $1.56B. PEG ratio at 0.7. Over the last 30 days, the current year EPS consensus has increased by 16.78% (from 1.43 to 1.67) while price has increased over 30 days by 5.13% (from $11.79 to $12.4). Might be undervalued at current levels, with a PEG ratio at 0.7, and P/FCF ratio at 7.08. It's been a rough couple of days for the stock, losing 8.35% over the last week.

14. Gorman-Rupp Co. (NYSEMKT:GRC): Diversified Machinery Industry. Market cap of $513.44M. PEG ratio at 0.93. Over the last 30 days, the current year EPS consensus has increased by 1.67% (from 1.8 to 1.83) while price has decreased over 30 days by 9.46% (from $32.87 to $29.76). The stock has performed poorly over the last month, losing 12.48%.

15. TAL International Group, Inc. (NYSE:TAL):
Rental & Leasing Services Industry. Market cap of $991.76M. PEG ratio at 0.94. Over the last 30 days, the current year EPS consensus has increased by 0.29% (from 3.4 to 3.41) while price has decreased over 30 days by 10.74% (from $33.42 to $29.83). The stock has performed poorly over the last month, losing 15.21%.

16. iGATE Corporation (NASDAQ:IGTE):
Information Technology Services Industry. Market cap of $935.94M. PEG ratio at 0.91. Over the last 30 days, the current year EPS consensus has increased by 2.06% (from 0.97 to 0.99) while price has decreased over 30 days by 8.54% (from $18.5 to $16.92). The stock is a short squeeze candidate, with a short float at 6.47% (equivalent to 5.06 days of average volume). It's been a rough couple of days for the stock, losing 6.91% over the last week.

17. Iconix Brand Group, Inc. (NASDAQ:ICON):
Textile Industry. Market cap of $1.56B. PEG ratio at 0.82. Over the last 30 days, the current year EPS consensus has increased by 0.61% (from 1.65 to 1.66) while price has decreased over 30 days by 9.61% (from $23.94 to $21.64). The stock is a short squeeze candidate, with a short float at 13.45% (equivalent to 15.08 days of average volume). It's been a rough couple of days for the stock, losing 5.8% over the last week.

*Analyst EPS estimates sourced from Yahoo! Finance, all other data sourced from Finviz. Data collected Monday, June 13, 2011.

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

Source: 17 Undervalued Stocks That Still Have to Price in Analyst Estimates