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While the market struggles to figure out what direction it wants to take this year some stocks have decided to rocket higher regardless of investor uncertainty. The good news for today is that some of these companies remain undervalued, hold strong fundamentals, and still offer more upside potential.

The Price/Cash Flow Ratio illustrates how much money the firm is actually receiving relative to the price of the stock. The Operating Margin is a profitability ratio that is considered the “life blood” of a firm in some respects & illustrates profitability after certain costs are covered.

We ran a screen on for companies that have outperformed the S&P 500 Year-To-Date and have a Price/CFO ratio of less than 10. From this pool we screened for companies that had an Operating Margin (2010 Fiscal Year) of at least 30%.

The list is ranked from lowest to highest Price/CFO ratio.

1. Amsurg Corporation (AMSG)

Sector

Healthcare

Industry

Medical Care

Market Cap

665

Beta

0.94

Analyst Sentiment

9/13 -List Hold/Neutral (Neutral)

The company develops, acquires and operates ambulatory surgery centers in partnership with physicians within the U.S. AMSG’s Price/Cash Flow is 2.78. The firm’s Operating Margin is 32.27%. The firm’s YTD Return -4.29% is 1.38. The short interest for the firm is 7.70% as of 8/15/2011.

2. ITT Educational Services, Inc. (ESI)

Sector

Consumer Defensive

Industry

Education & Training Services

Market Cap

2029

Beta

0.21

Analyst Sentiment

10/19 -List Hold/Neutral (Neutral)

ITT Educational Services, Inc. offers postsecondary degree programs in the U.S. The firm’s Price/Cash Flow is 4.09.ESI’s Operating Margin % is 38.43. The firm’s YTD Return 10%. The short interest for the firm is 65.50% as of 8/15/2011.

3. Sinclair Broadcast Group, Inc. (SBGI)

Sector

Consumer Cyclical

Industry

Broadcasting - TV

Market Cap

665

Beta

2

Analyst Sentiment

4/5 -List Buy/Outperform (Bullish)

The company does television broadcasting company that owns, operates, and offers various services to various to television stations in the U.S. SBGI’s Price/Cash Flow is 4.21. The firm’s Operating Margin is 31.33%. The firm’s YTD Return is -5.37%. The short interest for the firm is 6.80% as of 8/15/2011.

4. P.T. Telekomunikasi Indonesia (TLK)

Sector

Communication Services

Industry

Telecom Services

Market Cap

16808

Beta

1.15

Analyst Sentiment

11/15 -List Buy/Outperform (Bullish)

The company offers telecommunication and network services worldwide. The firm’s Price/Cash Flow is 4.82. TLK’s Operating Margin is 32.77%. The firm’s YTD Return is -3.16%. The short interest for the firm is N/A as of 8/15/2011.

5. Seaspan Corporation (SSW)

Sector

Industrials

Industry

Shipping & Ports

Market Cap

933

Beta

1.17

Analyst Sentiment

5/8 -List Buy/Outperform (Bullish)

The company operates the containerships for seaborne transportation worldwide. The firm’s Price/Cash Flow is 4.82. SWW’s Operating Margin is 46.62%. The firm’s YTD Return is 2.33%. The short interest for the firm is 4% as of 8/15/2011.

6. Bridgepoint Education, Inc. (BPI)

Sector

Consumer Defensive

Industry

Education & Training Services

Market Cap

1180

Beta

2.29

Analyst Sentiment

6/10 -List Buy/Outperform (Bullish)

The company offers postsecondary education services. The firm’s Price/Cash Flow is 5.04. The firm’s Operating Margin is 30.34%. BPI’s YTD Return is 11.32%. The short interest for the firm is 61% as of 8/15/2011.

7. Philippine Long Distance Telep (PHI)

Sector

Communication ServicesCommun Svs

Industry

Telecom Services

Market Cap

$10195M

Beta

0.57

Analyst Sentiment

5/10 -List Buy/Outperform (Bullish)

Philippine Long Distance Telephone Company provides telecommunication services in the Philippines. The firm’s Price/Cash Flow is 5.38. PHI’s Operating Margin is 38.46%. The firm’s YTD Return is -6.87%. The short interest for the firm is N/A as of 8/15/2011.

8. China Mobile Ltd. (CHL)

Sector

Communication ServicesCommun Svs

Industry

Telecom Services

Market Cap

$194803M

Beta

0.38

Analyst Sentiment

15/25 -List Hold/Neutral (Neutral)

The company is an investment holding company that offers mobile telecommunications and related services in China. CHL’s Price/Cash Flow is 5.45. The firm’s Operating Margin is 31.07%. The firm’s YTD Return is -3.67%. The short interest for the firm is as of 8/15/2011.

We hope this list helps as investors due their own due diligence.

Source: 8 Undervalued, High Cash Flow Stocks Rallying Despite Market Uncertainty