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If you think that the markets are going to calm down in the near future, you may be very interested in this list.

The VIX index, also known as the “fear gauge,” measures the implied volatility of S&P 500 index options, and it increases when market uncertainty takes over. If a stock has negative historical correlation with the VIX, it has tended to perform well when volatility and uncertainty subside.

We ran a screen on stocks that appear highly undervalued, with PEG below 1 and P/Free Cash Flow below 10. We screened these stocks for those with a deeply negative correlation to VIX over the last three months.

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.)

Do you think market volatility will subside? Use this list as a starting-off point for your own analysis.

List sorted by correlation to VIX.

1. Vishay Intertechnology Inc. (NYSE:VSH): Manufactures and supplies semiconductors and passive electronic components in the United States, Europe, and Asia. Market cap of $1.81B. PEG at 0.44. P/FCF at 4.53. Correlation to the VIX index at -0.97. This is a risky stock that is significantly more volatile than the overall market (beta = 2.21). The stock has had a couple of great days, gaining 8.47% over the last week. The stock has performed poorly over the last month, losing 15.72%.

2. Graphic Packaging Holding Company (NYSE:GPK): Provides packaging solutions in the United States, Canada, Central/South America, Europe, and the Asia-Pacific. Market cap of $1.60B. PEG at 0.86. P/FCF at 7.74. Correlation to the VIX index at -0.97. This is a risky stock that is significantly more volatile than the overall market (beta = 2.15). The stock has performed poorly over the last month, losing 17.51%.

3. Principal Financial Group Inc. (NYSE:PFG): Provides retirement savings, investment, and insurance products and services worldwide. Market cap of $7.83B. PEG at 0.85. P/FCF at 2.75. Correlation to the VIX index at -0.97. This is a risky stock that is significantly more volatile than the overall market (beta = 2.86). The stock has had a couple of great days, gaining 6.71% over the last week.

4. Telephone & Data Systems Inc. (NYSE:TDS): Provides wireless and wireline telecommunications services in the United States. Market cap of $2.61B. PEG at 0.86. P/FCF at 7.96. Correlation to the VIX index at -0.97. Might be undervalued at current levels, with a PEG ratio at 0.86, and P/FCF ratio at 7.96. The stock has had a couple of great days, gaining 5.62% over the last week. The stock has performed poorly over the last month, losing 10.77%.

5. Torchmark Corp. (NYSE:TMK): Provides individual life and supplemental health insurance products, and annuities to middle income households. Market cap of $3.97B. PEG at 0.92. P/FCF at 4.19. Correlation to the VIX index at -0.97. The stock has gained 16.04% over the last year.

6. DG FastChannel, Inc. (NASDAQ:DGIT): Provides digital technology services that enable the electronic delivery of advertisements, syndicated programs, and video news releases to traditional broadcasters, online publishers, and other media outlets. Market cap of $608.62M. PEG at 0.58. P/FCF at 7.44. Correlation to the VIX index at -0.96. The stock is a short-squeeze candidate, with a short float at 13.24% (equivalent to 7.22 days of average volume). The stock has had a couple of great days, gaining 12.82% over the last week. The stock has performed poorly over the last month, losing 16.55%.

7. Health Management Associates Inc. (NYSE:HMA): Engages in the operation of general acute care hospitals and other health care facilities in non-urban communities in the United States. Market cap of $2.03B. PEG at 0.91. P/FCF at 8.89. Correlation to the VIX index at -0.96. This is a risky stock that is significantly more volatile than the overall market (beta = 2.16). The stock has had a couple of great days, gaining 9.44% over the last week. The stock has performed poorly over the last month, losing 10.71%.

8. Prudential Financial, Inc. (NYSE:PRU): Offers various financial products and services in the United States, Asia, Europe, and Latin America. Market cap of $23.97B. PEG at 0.79. P/FCF at 2.79. Correlation to the VIX index at -0.96. This is a risky stock that is significantly more volatile than the overall market (beta = 2.4). The stock has performed poorly over the last month, losing 15.26%.

9. QLogic Corp. (NASDAQ:QLGC): Engages in the design and supply of storage networking, high performance computing networking, and converged networking infrastructure solutions. Market cap of $1.44B. PEG at 0.90. P/FCF at 8.30. Correlation to the VIX index at -0.96. The stock has had a couple of great days, gaining 6.46% over the last week.

10. Unum Group (NYSE:UNM): Provides group and individual disability insurance products primarily in the United States and the United Kingdom. Market cap of $7.12B. PEG at 0.88. P/FCF at 6.93. Correlation to the VIX index at -0.96. The stock has gained 18.79% over the last year.

11. Community Health Systems, Inc. (NYSE:CYH): Provides healthcare services through the operation of hospitals in the United States. Market cap of $1.98B. PEG at 0.53. P/FCF at 4.15. Correlation to the VIX index at -0.96. The stock has had a couple of great days, gaining 9.67% over the last week. The stock has performed poorly over the last month, losing 12.93%.

12. HEALTHSOUTH Corp. (NYSE:HLS): Offers inpatient rehabilitative healthcare services in the United States and Puerto Rico. Market cap of $2.01B. PEG at 0.21. P/FCF at 9.51. Correlation to the VIX index at -0.96. The stock is a short-squeeze candidate, with a short float at 7.79% (equivalent to 6.13 days of average volume). The stock has had a couple of great days, gaining 10.29% over the last week.

13. Ford Motor Co. (NYSE:F): Develops, manufactures, distributes, and services vehicles and parts worldwide. Market cap of $41.30B. PEG at 0.83. P/FCF at 5.78. Correlation to the VIX index at -0.96. This is a risky stock that is significantly more volatile than the overall market (beta = 2.36). The stock has had a couple of great days, gaining 5.43% over the last week. The stock has performed poorly over the last month, losing 11.98%.

14. CNO Financial Group, Inc. (NYSE:CNO): Engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. Market cap of $1.60B. PEG at 0.63. P/FCF at 1.46. Correlation to the VIX index at -0.95. This is a risky stock that is significantly more volatile than the overall market (beta = 2.55). The stock is a short-squeeze candidate, with a short float at 9.27% (equivalent to 6.91 days of average volume). The stock has had a couple of great days, gaining 9.01% over the last week.

15. Insperity, Inc. Common Stock (NYSE:NSP): Provides various personnel management services in the United States. Market cap of $672.07M. PEG at 0.78. P/FCF at 4.11. Correlation to the VIX index at -0.95. Might be undervalued at current levels, with a PEG ratio at 0.78, and P/FCF ratio at 4.11. The stock has performed poorly over the last month, losing 13.11%.

16. Janus Capital Group, Inc. (NYSE:JNS): A publicly owned asset management holding company. Market cap of $1.38B. PEG at 0.98. P/FCF at 5.33. Correlation to the VIX index at -0.95. This is a risky stock that is significantly more volatile than the overall market (beta = 2.66). The stock has had a couple of great days, gaining 17.49% over the last week. The stock has performed poorly over the last month, losing 11.39%.

17. Boise Inc. (NYSE:BZ): Engages in the manufacture and sale of paper and packaging products. Market cap of $752.80M. PEG at 0.30. P/FCF at 6.05. Correlation to the VIX index at -0.95. This is a risky stock that is significantly more volatile than the overall market (beta = 3.46). The stock has had a couple of great days, gaining 14.18% over the last week. The stock has performed poorly over the last month, losing 10.14%.

18. TTM Technologies Inc. (NASDAQ:TTMI): Provides backplane and sub-system assembly services in the United States and internationally. Market cap of $911.71M. PEG at 0.67. P/FCF at 9.08. Correlation to the VIX index at -0.95. The stock is a short-squeeze candidate, with a short float at 11.19% (equivalent to 5.88 days of average volume). The stock has had a couple of great days, gaining 7.68% over the last week. The stock has performed poorly over the last month, losing 18.59%.

19. Entropic Communications, Inc. (NASDAQ:ENTR): Designs, develops, and markets systems solutions to enable connected home entertainment. Market cap of $402.04M. PEG at 0.28. P/FCF at 9.37. Correlation to the VIX index at -0.95. This is a risky stock that is significantly more volatile than the overall market (beta = 2.61). The stock is a short-squeeze candidate, with a short float at 18.41% (equivalent to 5.13 days of average volume). The stock has had a couple of great days, gaining 15.38% over the last week. The stock has performed poorly over the last month, losing 31.21%.

20. KEMET Corp. (NYSE:KEM): Manufactures and sells capacitors worldwide. Market cap of $409.27M. PEG at 0.48. P/FCF at 5.02. Correlation to the VIX index at -0.95. The stock has had a couple of great days, gaining 10.36% over the last week. The stock has performed poorly over the last month, losing 24.33%.

Price data sourced from Yahoo Finance; all other data sourced from Finviz.

Source: 20 Undervalued Stocks That Rise When Volatility Wanes