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Historically, value investing achieved better performance than index funds. That’s why there is tremendous interest in value investing. A lesser known fact in investing is that momentum stocks historically performed even better than value stocks. Investors can combine these two strategies and may be able to significantly outperform index funds on the average if there isn’t much change in historical patterns.

Below we compiled a list of 20 undervalued momentum stocks. All companies have at least $2 billion market cap and PEG ratio lower than 1. They achieved the biggest gain over the past month. Market data is sourced from Finviz.

Ticker

Company

Performance (Month)

Market Cap ($*1000)

PEG

SNDK

SanDisk Corp.

31.82%

10208

0.62

JBL

Jabil Circuit Inc.

19.26%

3681

0.64

LVS

Las Vegas Sands

18.86%

35208

0.7

SPIL

Siliconware Precision Ind.

18.70%

2966

0.92

LTD

Limited Brands, Inc.

18.40%

11804

0.86

CRS

Carpenter Tech

18.38%

2241

0.8

MRVL

Marvell Technology

18.31%

9000

0.75

MGM

MGM Resorts

18.14%

5282

0.16

IR

Ingersoll-Rand Plc

16.57%

10521

0.9

HSNI

HSN, Inc.

16.34%

2009

0.95

ONNN

ON Semiconductor

15.92%

3461

0.99

AAPL

Apple Inc.

15.63%

382090

0.78

TSO

Tesoro Corporation

15.49%

3089

0.26

NDAQ

Nasdaq OMX Group

15.25%

4281

0.77

NCR

NCR Corp.

14.85%

2773

0.96

BMRN

BioMarin Pharma

14.69%

3466

0.87

CMI

Cummins Inc.

14.58%

17836

0.88

CROX

CROCS Inc.

14.50%

2409

0.91

BID

Sotheby's

14.39%

2325

0.65

ASX

Advanced Semi

14.36%

6346

0.52

Here are the top 10 undervalued momentum stocks with the best performance in the past month:

SanDisk Corp (SNDK): SanDisk is engaged in designing, developing and manufacturing data storage solutions. SNDK gained 31.82% over the past month. It has a market cap of $10.2B and a PEG ratio of 0.62. John Griffin invested $193 million in SNDK at the end of June (check out Griffin’s top stock picks).

Jabil Circuit Inc. (JBL): Jabil is a provider of worldwide electronic manufacturing services and solutions. JBL gained 19.26% over the past month. It has a market cap of $3.7B and a PEG ratio of 0.64. Rob Citrone invested nearly $200 million in JBL shares. Ken Griffin and Ray Dailo were also main investors in JBL stocks and they both increased their JBL positions by over 100% during the second quarter (check out Dailo’s top stock picks).

Las Vegas Sands Corp. (LVS): Las Vegas Sands Corp is a casino resort company. LVS gained 18.86% over the past month. It has a market cap of $35.2B and a PEG ratio of 0.7. Peter J. Eichler Jr. invested about $100 million in LVS shares.

Siliconware Precision Industries Co. Ltd. (SPIL): Siliconware Precision Industries is principally engaged in the provision of semiconductor packaging and testing services. SPIL gained 18.70% over the past month. It has a market cap of $3.0B and a PEG ratio of 0.92. Ken Fisher invested $46 million in SPIL shares (check out Fisher’s top stock picks).

Limited Brands, Inc. (LTD): Limited Brands operates is a specialty retailer of women’s intimate and other apparel, beauty and personal care products and accessories. LTD gained 18.40% over the past month. It has a market cap of $11.8B and a PEG ratio of 0.86. David Keidan had $52 million invested in LTD shares.

Carpenter Technology Corp. (CRS): Carpenter is engaged in the manufacturing, fabrication and distribution of specialty metals. CRS gained 18.38% over the past month. It has a market cap of $22.4B and a PEG ratio of 0.8. Chuck Royce invested $47 million in CRS shares.

Marvell Technology Group Ltd. (MRVL): Marvell is a semiconductor provider of application-specific standard products. MRVL gained 18.31% over the past month. It has a market cap of $9.0B and a PEG ratio of 0.75. Stuart Peterson and Lee Ainslie both had over $400 million in MRVL.

MGM Resorts International (MGM): MGM Resorts International is engaged in gaming, hospitality and entertainment. MGM gained 18.14% over the past month. It has a market cap of $5.3B and a PEG ratio of 0.16. John Paulson had $550 million invested in MGM shares (check out Paulson’s top stock picks).

Ingersoll-Rand Plc (IR): Ingersoll Rand is a supplier to transportation, manufacturing, construction, and agricultural industries.IR gained 16.57% over the past month. It has a market cap of $10.5B and a PEG ratio of 0.9. Steven Cohen invested $149 million in IR at the end of June and he increased his position by 1212% during the second quarter (check out Cohen’s top stock picks).

HSN, Inc. (HSNI): HSN is an interactive multi-channel retailer. HSNI gained 16.34% over the past month. It has a market cap of $2.0B and a PEG ratio of 0.95. Ken Griffin invested $21 million in HSNI shares.



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

Source: 20 Undervalued Momentum Stocks Taking Off Right Now