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In the search for potentially undervalued stocks, we ran a screen based on the theoretical assumption that if 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 ran a screen on dividend stocks with low debt for those exhibiting this mismatch between changes in EPS estimate and 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.

Click to enlarge


Do you think these stocks should be trading higher? Use this list as a starting point for your own analysis.

List sorted by dividend yield.

1. Superior Industries International, Inc. (NYSE:SUP):
Designs, develops, manufactures, sells and supplies cast aluminum road wheels to automobile and light truck manufacturers primarily in North America. Market cap of $450.31M. Dividend yield at 3.90%, payout ratio at 29.56%. MRQ total debt/total assets at 0.0. Over the last 30 days, analyst projected EPS has increased 0.66% (from $1.52 to $1.53), while the price has decreased 3.64% (from $16.50 to $15.90). The stock has gained 4.15% over the last year.

2. Protective Life Corp. (NYSE:PL): Engages in the production, distribution and administration of insurance and investment products in the United States. Market cap of $1.62B. Dividend yield at 3.74%, payout ratio at 14.74%. MRQ total debt/total assets at 0.04. Over the last 30 days, analyst projected EPS has increased 0.62% (from $3.23 to $3.25), while the price has decreased 12.20% (from $19.02 to $16.70). This is a risky stock that is significantly more volatile than the overall market (beta = 3.). Might be undervalued at current levels, with a PEG ratio at 0.62, and P/FCF ratio at 2.89. The stock has lost 15.18% over the last year.

3. BHP Billiton plc (NYSE:BBL): Operates as a diversified natural resources company. Market cap of $169.50B. Dividend yield at 3.52%, payout ratio at 22.53%. MRQ total debt/total assets at 0.15. Over the last 30 days, analyst projected EPS has increased 0.50% (from $6.01 to $6.04), while the price has decreased 8.27% (from $67.46 to $61.88). Might be undervalued at current levels, with a PEG ratio at 0.79, and P/FCF ratio at 13.64. The stock has gained 6.86% over the last year.

4. Fidelity National Financial, Inc. (NYSE:FNF):
Provides title insurance, mortgage services, specialty insurance and information services in the United States. Market cap of $3.67B. Dividend yield at 2.95%, payout ratio at 33.63%. MRQ total debt/total assets at 0.12. Over the last 30 days, analyst projected EPS has increased 7.04% (from $1.42 to $1.52), while the price has decreased 0.80% (from $16.27 to $16.14). The stock has gained 12.48% over the last year.

5. Honeywell International Inc. (NYSE:HON):
Operates as a diversified technology and manufacturing company worldwide. Market cap of $36.49B. Dividend yield at 2.94%, payout ratio at 32.68%. MRQ total debt/total assets at 0.19. Over the last 30 days, analyst projected EPS has increased 0.51% (from $3.96 to $3.98), while the price has decreased 5.23% (from $47.23 to $44.76). The stock has gained 9.36% over the last year.

6. BHP Billiton Ltd. (NYSE:BHP): Industrial Metals and Minerals Industry. Market cap of $209.70B. Dividend yield at 2.83%, payout ratio at 22.53%. MRQ total debt/total assets at 0.15. Over the last 30 days, analyst projected EPS has increased 13.49% (from $7.93 to $9.00), while the price has decreased 8.20% (from $83.66 to $76.80). The stock has gained 10.09% over the last year.

7. Bob Evans Farms Inc. (NASDAQ:BOBE):
Operates full-service restaurants under the Bob Evans and Mimi's Cafe brand names in the United States. Market cap of $899.89M. Dividend yield at 2.75%, payout ratio at 34.22%. MRQ total debt/total assets at 0.13. Over the last 30 days, analyst projected EPS has increased 0.42% (from $2.39 to $2.40), while the price has decreased 8.27% (from $31.57 to $28.96). The stock is a short squeeze candidate, with a short float at 6.43% (equivalent to 8.5 days of average volume). The stock has gained 9.2% over the last year.

8. Boeing Co. (NYSE:BA): Engages in the design, development, manufacture, sale and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems and services worldwide. Market cap of $47.67B. Dividend yield at 2.67%, payout ratio at 33.02%. MRQ total debt/total assets at 0.16. Over the last 30 days, analyst projected EPS has increased 0.95% (from $4.20 to $4.24), while the price has increased 0.59% (from $62.70 to $63.07). The stock has gained 5.27% over the last year.

9. The Chubb Corporation (NYSE:CB):
Provides property and casualty insurance to businesses and individuals. Market cap of $17.11B. Dividend yield at 2.62%, payout ratio at 26.61%. MRQ total debt/total assets at 0.08. Over the last 30 days, analyst projected EPS has increased 0.53% (from $5.69 to $5.72), while the price has decreased 3.67% (from $61.39 to $59.14). Might be undervalued at current levels, with a PEG ratio at 0.94, and P/FCF ratio at 10.11. The stock has gained 5.97% over the last year.

10. Exxon Mobil Corporation (NYSE:XOM): Engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas and petroleum products. Market cap of $359.85B. Dividend yield at 2.60%, payout ratio at 21.61%. MRQ total debt/total assets at 0.05. Over the last 30 days, analyst projected EPS has increased 0.58% (from $8.57 to $8.62), while the price has decreased 3.14% (from $74.29 to $71.96). The stock has gained 24.3% over the last year.

11. BankUnited, Inc. (NYSE:BKU):
Operates as the holding company for BankUnited that provides various banking products and services to consumers, and commercial and middle-market businesses. Market cap of $2.12B. Dividend yield at 2.55%, payout ratio at 33.86%. MRQ total debt/total assets at 0.0. Over the last 30 days, analyst projected EPS has increased 0.58% (from $1.71 to $1.72), while the price has decreased 0.90% (from $22.30 to $22.10). The stock has gained 0% over the last year.

12. Cenovus Energy Inc. (NYSE:CVE):
Engages in the development, production and marketing of bitumen, crude oil, natural gas and natural gas liquids (NGLs) in Canada with refining operations in the United States. Market cap of $26.06B. Dividend yield at 2.44%, payout ratio at 23.05%. MRQ total debt/total assets at 0.17. Over the last 30 days, analyst projected EPS has increased 11.24% (from $1.69 to $1.88), while the price has decreased 10.66% (from $36.69 to $32.78). The stock has gained 30.22% over the last year.

13. Tyco International Ltd. (NYSE:TYC):
Provides security products and services, fire protection and detection products and services, valves and controls, and other industrial products to customers worldwide. Market cap of $19.68B. Dividend yield at 2.43%, payout ratio at 32.42%. MRQ total debt/total assets at 0.16. Over the last 30 days, analyst projected EPS has increased 0.32% (from $3.16 to $3.17), while the price has decreased 0.29% (from $41.41 to $41.29). The stock has had a couple of great days, gaining 5.16% over the last week.

14. ACE Limited (NYSE:ACE):
Provides a range of insurance and reinsurance products to insureds worldwide. Market cap of $20.90B. Dividend yield at 2.29%, payout ratio at 19.60%. MRQ total debt/total assets at 0.05. Over the last 30 days, analyst projected EPS has increased 0.62% (from $6.50 to $6.54), while the price has decreased 4.89% (from $64.19 to $61.05). Might be undervalued at current levels, with a PEG ratio at 0.8, and P/FCF ratio at 6.02. The stock has gained 9.34% over the last year.

15. XL Group plc (NYSE:XL):
Provides insurance and reinsurance coverages to industrial, commercial and professional firms, insurance companies and other enterprises worldwide. Market cap of $5.92B. Dividend yield at 2.26%, payout ratio at 15.19%. MRQ total debt/total assets at 0.05. Over the last 30 days, analyst projected EPS has increased 3.13% (from $1.28 to $1.32), while the price has decreased 4.34% (from $20.06 to $19.19). This is a risky stock that is significantly more volatile than the overall market (beta = 2.57). The stock has lost 0.25% over the last year.

16. Cascade Corp. (NYSE:CASC): Manufactures loading devices and replacement parts primarily for the lift-truck and construction industry. Market cap of $399.10M. Dividend yield at 2.24%, payout ratio at 31.92%. MRQ total debt/total assets at 0.12. Over the last 30 days, analyst projected EPS has increased 4.35% (from $4.83 to $5.04), while the price has decreased 17.97% (from $42.08 to $34.52). The stock is currently stuck in a downtrend, trading 5.28% below its SMA20, 18.5% below its SMA50, and 20.17% below its SMA200. The stock has performed poorly over the last month, losing 14.68%.

17. Kohl's Corp. (NYSE:KSS): Operates department stores in the United States. Market cap of $13.20B. Dividend yield at 2.23%, payout ratio at 23.19%. MRQ total debt/total assets at 0.14. Over the last 30 days, analyst projected EPS has increased 2.03% (from $4.43 to $4.52), while the price has decreased 6.08% (from $47.53 to $44.64). Might be undervalued at current levels, with a PEG ratio at 0.88, and P/FCF ratio at 14.03. The stock has had a couple of great days, gaining 7.07% over the last week.

18. Murphy Oil Corporation (NYSE:MUR):
Engages in the exploration and production of oil and gas properties worldwide. Market cap of $10.12B. Dividend yield at 2.14%, payout ratio at 17.08%. MRQ total debt/total assets at 0.10. Over the last 30 days, analyst projected EPS has increased 2.18% (from $5.96 to $6.09), while the price has decreased 4.70% (from $53.61 to $51.09). The stock has lost 9.5% over the last year.

*Projected EPS and price 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: 18 Low Debt Dividend Stocks Undervalued By EPS Trends