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Here we offer an interesting way to search for companies that analysts with a history of predicting performance expect to outperform.

Using analyst ratings from Reuters that are presented on a linear scale (with 1 = "Strong Buy" and 5 = "Strong Sell"), we sliced the ratings data of highly undervalued stocks (with PEG below 1 and P/FCF below 10) into three time periods separated by a month, and identified the group of analysts that have shown predictive value, i.e. been able to accurately predict the direction of stock moves for two consecutive time periods.

We further narrowed down the list by only focusing on those stocks that have seen bullish trends in analyst opinion. In other words, predictive analysts, with a proven (short-term) track record of predicting their stock's direction, think these stocks are due for a rebound. The screen produced 2 stocks, listed below.

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

Although past performance is no guarantee of future results, the recent accuracy of these analyst ratings suggests their opinions may be a helpful starting-off point for your own analysis.

Do you think these stocks will outperform?

A quick reminder: Analyst ratings moving closer to 1 represent bullish trends, while ratings moving closer to 5 reflect bearish analyst sentiment. All alphas are relative to the S&P 500 index over comparable time periods.

1. Research In Motion Limited (RIMM): Diversified Communication Services Industry. Market cap of $14.36B. PEG at 0.33. P/FCF at 7.99. The stock has lost 48.5% over the last year.

Mean average rating changed from 2.67 to 2.91 between 04/27/11 and 05/27/11 (bearish change). Analysts correctly predicted the direction of the stock over the next month, with the stock generating an alpha of -31.56%. Analysts also got it right between 05/27/11 and 06/26/11, with the mean rating changing from 2.91 to 3.11 (bearish change).

Over the following month, the stock generated an alpha of -6.82% relative to the S&P 500 index, as predicted by the analysts. This same group of analysts now expect the stock to outperform in the future, with the mean rating changing from 3.11 to 3.09 between 06/26/11 and 07/26/11 (i.e. bullish change).

2. Marvell Technology Group Ltd. (NASDAQ:MRVL): Semiconductor Industry. Market cap of $9.49B. PEG at 0.77. P/FCF at 9.49. The stock has had a good month, gaining 10.38%.

Mean average rating changed from 2.06 to 2.13 between 04/27/11 and 05/27/11 (bearish change). Analysts correctly predicted the direction of the stock over the next month, with the stock generating an alpha of -8.72%. Analysts also got it right between 05/27/11 and 06/26/11, with the mean rating changing from 2.13 to 2.03 (bullish change).

Over the following month, the stock generated an alpha of 5.71% relative to the S&P 500 index, as predicted by the analysts. This same group of analysts now expect the stock to outperform in the future, with the mean rating changing from 2.03 to 2 between 06/26/11 and 07/26/11 (i.e. bullish change).

*Ratings sourced from Reuters, all other data sourced from Finviz.

Source: 2 Highly Undervalued Stocks Predictive Analysts Think Will Outperform