Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Here we offer an interesting way to find potentially undervalued opportunities. Under the theoretical assumption that P/E is equal to a constant K, growth in EPS estimates should be matched by proportionate growth in price. When they don’t match up, a mispricing may have occurred. We admit that many stocks have been trading lower lately due to the large breadth of the latest market downturn; however, it is helpful to focus on stocks with increases in projected earnings.

We ran a screen on low-beta stocks trading near their 52-week lows for those exhibiting the behavior of growth in earnings estimates over the last 30 days coupled with decreases in price.

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 difference between change in earnings estimate and price over the last 30 days.

1. S&T Bancorp Inc. (NASDAQ:STBA): Regional Banks Industry. Market cap of $498.63M. Beta at 0.49. The stock is trading 1.38% above its 52-week low. Over the last 30 days, analyst projected EPS has increased 20.91% (from $1.10 to $1.33), while the price has changed -10.56% (from $17.90 to $16.01). The stock is a short squeeze candidate, with a short float at 9.36% (equivalent to 24.38 days of average volume). The stock has lost 7.78% over the last year.

2. GeoEye, Inc. (NASDAQ:GEOY): Information & Delivery Services Industry. Market cap of $733.38M. Beta at 0.36. The stock is trading 1.02% above its 52-week low. Over the last 30 days, analyst projected EPS has increased 7.18% (from $1.95 to $2.09), while the price has changed -17.46% (from $37.12 to $30.64). It's been a rough couple of days for the stock, losing 14.82% over the last week.

3. Commerce Bancshares Inc. (NASDAQ:CBSH): Regional Banks Industry. Market cap of $3.29B. Beta at 0.46. The stock is trading 4.22% above its 52-week low. Over the last 30 days, analyst projected EPS has increased 6.01% (from $2.83 to $3.00), while the price has changed -15.83% (from $42.89 to $36.10). It's been a rough couple of days for the stock, losing 6.24% over the last week.

4. ICF International Inc. (NASDAQ:ICFI): Management Services Industry. Market cap of $434.32M. Beta at 0.43. The stock is trading 7.25% above its 52-week low. Over the last 30 days, analyst projected EPS has increased 1.17% (from $1.71 to $1.73), while the price has changed -17.04% (from $25.00 to $20.74). It's been a rough couple of days for the stock, losing 11.05% over the last week.

5. First Financial Bankshares Inc. (NASDAQ:FFIN):
Regional Banks Industry. Market cap of $983.13M. Beta at 0.41. The stock is trading 4.48% above its 52-week low. Over the last 30 days, analyst projected EPS has increased 2.43% (from $2.06 to $2.11), while the price has changed -15.55% (from $33.82 to $28.56). The stock is a short squeeze candidate, with a short float at 15.88% (equivalent to 37.18 days of average volume). The stock has gained 0.77% over the last year.

6. Campbell Soup Co. (NYSE:CPB): Processed & Packaged Goods Industry. Market cap of $9.86B. Beta at 0.28. The stock is trading 0.27% above its 52-week low. Over the last 30 days, analyst projected EPS has increased 1.63% (from $2.45 to $2.49), while the price has changed -12.65% (from $34.14 to $29.82). The stock is a short squeeze candidate, with a short float at 10.52% (equivalent to 7.14 days of average volume). It's been a rough couple of days for the stock, losing 5.88% over the last week.

7. Wisconsin Energy Corp. (NYSE:WEC):
Diversified Utilities Industry. Market cap of $6.73B. Beta at 0.38. The stock is trading 7.92% above its 52-week low. Over the last 30 days, analyst projected EPS has increased 1.44% (from $2.08 to $2.11), while the price has changed -8.49% (from $31.21 to $28.56). The stock has gained 5.81% over the last year.

8. Northwest Natural Gas Company (NYSE:NWN): Gas Utilities Industry. Market cap of $1.15B. Beta at 0.32. The stock is trading 7.14% above its 52-week low. Over the last 30 days, analyst projected EPS has increased 1.20% (from $2.50 to $2.53), while the price has changed -8.27% (from $45.82 to $42.03). The stock is a short squeeze candidate, with a short float at 9.06% (equivalent to 16.45 days of average volume). The stock has lost 5.77% over the last year.

Price and earnings data sourced from Yahoo Finance, all other data sourced from Finviz.

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

Source: 8 Low-Volatility Stocks Trading Near Lows and Undervalued by EPS Trends