7 Distressed Companies With Amazing Top Line Growth Still Trading at Low Valuations

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 |  Includes: LEN, LUV, MS, PLD, TAP, TSO, VLO
by: Follow My Alpha

Some of the best investments in our view are the underdogs that are trying to turn the ship around. The process though of indentifying these companies is easier said than done. There are so many metrics to look at and review it can make your head explode. Not to mention that investing in companies like this entails additional risk that must be factored in. In our view when investors are going for distressed companies they need to be already posting spectacular top line numbers while still trading at a low price-multiple valuation.

We ran a screen for companies that were trading below book value (X< Price/Book value=1). From this pool we screened for companies that generated high quarterly sales growth (X>15%). We did not screen out any sectors.

The list below is sorted from highest to lowest by the earnings growth rate.

Prologis Inc (NYSE:PLD)

Sector

Financial

Industry

REIT-Industrial

Market Cap

$13.20B

Beta

2.03

Analyst Sentiment

9/16 - Neutral/Hold (Neutral)

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ProLogis runs an international real estate property network that primarily focuses on industrial distribution properties. Business has been segmented into CDFS business, fund management, & property operations. The firm has a price/book value value Ratio of .34. The firm’s Quarterly Sales Growth rate is 102.63%. In the last month PLD has lost 20% in value.

Short Interest Note:
The short interest for PLD is 9.60% as of 07/15/2011.

Molson Coors Brewing Co (NYSE:TAP)

Sector

Consumer Goods

Industry

Beverages-Brewers

Market Cap

$7.97B

Beta

7.97B

Analyst Sentiment

10/12- List Hold/Neutral (Neutral)

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This is a holding company that operates subsidiaries such as Coors Brewing Company and others. The firm has a price/book value Ratio of .87. The firm’s Quarterly Sales Growth rate is .38.68%. In the last month TAP has lost 5.59% in value.

Short Interest Note:
The short interest for TAP is 1.70% as of 07/15/2011.

Lennar Corp (NYSE:LEN)

Sector

Industrial Goods

Industry

Residential Construction

Market Cap

$2.89B

Beta

1.72

Analyst Sentiment

11/20- List Buy/Outperform (Bullish)

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The firm primarily builds single-family attached, detached homes, and condominiums. The firm has a price/book value Ratio of .89. The firm’s Quarterly Sales Growth rate is 36.99. In the last month the ticker has lost 18.35% in value.

Short Interest Note:
The short interest for LEN is 22.10% as of 07/15/2011.

Southwest Airlines (NYSE:LUV)

Sector

Services

Industry

Regional Airlines

Market Cap

$6.34B

Beta

1.35

Analyst Sentiment

13/19- List Buy/Outperform (Bullish)

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The firm is a major airline in the US that focuses on low-fare operations. The firm has a price/book value Ratio of .96. The firm’s Quarterly Sales Growth rate is 33.29%. In the last month the firm has lost 27.05% in value.

Short Interest Note:
The short interest for LUV is 27.05% as of 07/15/2011.

Tesoro Corp (NYSE:TSO)

Sector

Basic Materials

Industry

Oil & Gas Refining & marketing

Market Cap

$3.06B

Beta

1.20

Analyst Sentiment

23/33- List Buy/Outperform (Bullish)

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Independent petroleum refiners and marketers in the US with two operating segments: refining crude oil and selling refined products in bulk and wholesale markets and selling motor fuels and convenience products in the retail market.

The firm is a large independent petroleum refiner in the US. The firm has a price/book value Ratio of .92. The firm’s Quarterly Sales Growth rate is 22.02%. In the last month TSO has lost 12.25% in value.

Short Interest Note:

The short interest for the firm is 14.40% as of 07/15/2011.

Morgan Stanley (NYSE:MS)

Sector

Financial

Industry

Investment Brokerage - National

Market Cap

$38.62B

Beta

1.20

Analyst Sentiment

13/29- List Hold/Neutral (Neutral)

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This is an international financial services company. The firm has price/book value Ratio of .54. The firm’s Quarterly Sales Growth rate is 21.57%. In the last month the ticker has lost 12.96% in value.

Short Interest Note:
The short interest for MS is 1.00% as of 07/15/2011.

Valero Energy Corp (NYSE:VLO)

Sector

Basic Materials

Industry

Oil & Gas Refining & marketing

Market Cap

$11.81B

Beta

1.08

Analyst Sentiment

10.18 List-Buy/Outperform (Bullish)

Click to enlarge

This is the largest independent petroleum refiner in North America. The firm has price/book value Ratio of .77. The firm’s Quarterly Sales Growth rate is 18.95%. In the last month VLO has lost 21.3% in value.

Short Interest Note:
The short interest for VLO is 2.50% as of 07/15/2011.

We hope this helps investors as they do their own homework and due diligence on companies that are turning the ship around and posting the numbers to back the story.

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