8 S&P 500 Stocks Undervalued By EPS Trends

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Includes: CF, ETFC, HAL, JOY, MPC, NOV, TSO, VLO
by: Kapitall

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 stocks of the S&P 500 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.

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

List sorted by difference between projected EPS change and price change.

1. CF Industries Holdings, Inc. (NYSE:CF): Manufactures and distributes nitrogen and phosphate fertilizer products, serving agricultural and industrial customers worldwide. Market cap of $10.40B. Over the last 30 days, analyst projected EPS has increased 7.89% (from $19.78 to $21.34), while the price has decreased 20.57% (from $188.60 to $149.80). It's been a rough couple of days for the stock, losing 5.2% over the last week.

2. Marathon Petroleum Corporation (NYSE:MPC): Engages in refining, transporting, and marketing petroleum products primarily in the United States and internationally. Market cap of $10.33B. Over the last 30 days, analyst projected EPS has increased 9.21% (from $7.06 to $7.71), while the price has decreased 17.22% (from $36.00 to $29.80). The stock is currently stuck in a downtrend, trading 21.85% below its SMA20, 27.2% below its SMA50, and 28.87% below its SMA200. It's been a rough couple of days for the stock, losing 10.56% over the last week.

3. Halliburton Company (NYSE:HAL): Provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide. Market cap of $29.86B. Over the last 30 days, analyst projected EPS has increased 0.60% (from $3.34 to $3.36), while the price has decreased 20.58% (from $42.81 to $34.00). The stock is currently stuck in a downtrend, trading 17.5% below its SMA20, 27.75% below its SMA50, and 30.31% below its SMA200. It's been a rough couple of days for the stock, losing 7.47% over the last week.

4. Valero Energy Corp. (NYSE:VLO): Operates as an independent petroleum refining and marketing company. Market cap of $10.56B. Over the last 30 days, analyst projected EPS has increased 8.81% (from $3.86 to $4.20), while the price has decreased 12.35% (from $21.70 to $19.02). The stock is currently stuck in a downtrend, trading 13.96% below its SMA20, 16.32% below its SMA50, and 27.39% below its SMA200. It's been a rough couple of days for the stock, losing 7.19% over the last week.

5. Joy Global, Inc. (JOYG): Engages in the manufacture and servicing of mining equipment for the extraction coal, copper, iron ore, oil sands, and other minerals worldwide. Market cap of $6.96B. Over the last 30 days, analyst projected EPS has increased 3.31% (from $5.74 to $5.93), while the price has decreased 16.56% (from $80.82 to $67.44). This is a risky stock that is significantly more volatile than the overall market (beta = 2.11). It's been a rough couple of days for the stock, losing 6.03% over the last week.

6. Tesoro Corporation (NYSE:TSO): Engages in refining and marketing petroleum products in the United States. Market cap of $2.86B. Over the last 30 days, analyst projected EPS has increased 7.64% (from $4.32 to $4.65), while the price has decreased 12.49% (from $23.21 to $20.31). The stock is currently stuck in a downtrend, trading 10.93% below its SMA20, 9.59% below its SMA50, and 11.51% below its SMA200. It's been a rough couple of days for the stock, losing 7.36% over the last week.

7. E*TRADE Financial Corporation (NASDAQ:ETFC): Provides online brokerage and related products and services primarily to individual retail investors in the United States. Market cap of $2.68B. Over the last 30 days, analyst projected EPS has increased 1.49% (from $0.67 to $0.68), while the price has decreased 16.64% (from $11.42 to $9.52). This is a risky stock that is significantly more volatile than the overall market (beta = 2.09). It's been a rough couple of days for the stock, losing 8.2% over the last week.

8. National Oilwell Varco, Inc. (NYSE:NOV): Designs, constructs, manufactures, and sells systems, components, and products used in oil and gas drilling and production; provides oilfield services and supplies; and distributes products, and provides supply chain integration services to the upstream oil and gas industry worldwide. Market cap of $22.86B. Over the last 30 days, analyst projected EPS has increased 0.45% (from $4.45 to $4.47), while the price has decreased 16.43% (from $66.59 to $55.65). It's been a rough couple of days for the stock, losing 7.05% over the last week.

*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.