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The sell-off in the markets continues to provide good entry points for long-term investors. Here are three under-covered stocks with compelling valuations, recent insider buying and good growth prospects.

Kronos Worldwide (NYSE:KRO) – “Kronos Worldwide, Inc. engages in the production and marketing of titanium dioxide pigments in North America and Europe. The titanium dioxide pigments are used to impart whiteness, brightness, and opacity for products, such as coatings, plastics, papers, fibers, food, ceramics, and cosmetics. The company produces titanium dioxide pigments in two crystalline forms, such as rutile and anatase under the Kronos brand name.” (Business description from Yahoo Finance.)

Five reasons to buy KRO at around $21 a share:

  1. KRO is selling near the bottom of its five-year valuation range based on P/E and P/CF.
  2. It has easily beat earnings estimates three of the last four quarters, and consensus EPS estimates for 2011 and 2012 have risen significantly in the last three months.
  3. Insiders snapped up some shares in August, and the stock’s five-year projected PEG is a very low .39. It also has a 2.7% dividend yield.
  4. Revenues are predicted to grow 40% this year and north of 25% in 2012. KRO is selling at under 7.5 times this year’s predicted earnings and just 5.5 times next year’s expected EPS.
  5. Kronos is selling significantly under price targets of analysts. The median analyst price target on KRO is $38.

Royal Caribbean Cruises (NYSE:RCL) – “Royal Caribbean Cruises Ltd. operates in the cruise vacation industry worldwide. It owns five cruise brands: Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, and CDF Croisieres de France.” (Business description from Yahoo Finance.)

Five reasons to recommend RCL at $25 a share:

  1. Royal Caribbean is selling in the bottom quarter of its five-year valuation range based on P/E, P/B, P/S and P/CF.
  2. It has easily beat earnings estimates three of the last four quarters, and RCL is selling at just 9 times this year’s expected earnings.
  3. An officer just picked up $1.5 million in shares last week, and the company should benefit from decelerating industry capacity growth.
  4. Royal Caribbean has a five-year projected PEG of just .75, owns one of the most attractive fleets in the industry and has strong earnings leverage.
  5. Credit Suisse has a price target of $52 on RCL, double the stock’s current price. The mean analyst price target on Royal Caribbean is $44 a share.

Webster Financial (NYSE:WBS) – “Webster Financial Corporation operates as the holding company for the Webster Bank that provides various banking and financial products and services in southern New England and eastern New York State. It provides business and consumer banking, mortgage lending, financial planning, and trust and investment services to individuals, families, businesses, and public entities.” (Business description from Yahoo Finance.)

Five reasons WBS has value at $17 a share:

  1. 1. Webster Financial is selling just above long-term technical support levels (see chart):

  2. WBS has beat earnings estimates the last four quarters, and consensus EPS estimates for 2011 and 2012 have risen significantly in the last ninety days.
  3. Insiders have bought over $400K in shares in the last six weeks.
  4. Webster Financial expected five-year projected PEG of under .5 and around .8 times book value.
  5. The mean analyst price target on WBS is $24.25 a share.
Source: 3 Stocks At Least 40% Under Price Targets And With Insider Buying Activity