Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

In the never-ending search for potentially undervalued stocks, one idea is to compare current price to analyst target prices.

Of course, analyst prices tend to be inflated most of the time, so we ran a screen that used the most pessimistic analyst target price as the benchmark for our analysis.

In addition, we only focused on companies that have more than five analyst target prices (to make sure we only focus on companies that have decent analyst coverage).

We screened for stocks with five-year projected EPS growth above 20% that are currently rallying above their 20-day, 50-day and 200-day moving averages. We screened these stocks for those that are trading significantly under their most pessimistic analyst target prices.

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 will meet these price targets? Use this list as a starting point for your own analysis.

List sorted by potential upside implied by target price.

1. Skullcandy, Inc. (NASDAQ:SKUL): Develops and distributes headphones and other audio accessories to retailers in the United States and to distributors in various countries worldwide. Market cap of $426.13M. Estimated EPS growth over the next five years at 21.25%. The stock is currently trading at 10.59% above its 20-Day SMA, 5.28% above its 50-Day SMA, and 0.05% above its 200-Day SMA. Of the eight analysts that have set a target price on the stock, the lowest price target stands at $20.00. This implies a current upside of 26.42% from current levels around $15.82. The stock has had a couple of great days, gaining 10.49% over the last week.

2. Roadrunner Transportation Systems, Inc. (NYSE:RRTS):
Operates as a non-asset based transportation and logistics service company. Market cap of $486.17M. Estimated EPS growth over the next five years at 39.75%. The stock is currently trading at 11.69% above its 20-Day SMA, 10.16% above its 50-Day SMA, and 9.73% above its 200-Day SMA. Of the seven analysts that have set a target price on the stock, the lowest price target stands at $19.00. This implies a current upside of 24.18% from current levels around $15.30. The stock has had a couple of great days, gaining 15.76% over the last week.

3. The Spectranetics Corporation (NASDAQ:SPNC):
Designs, manufactures and markets single use medical devices used in minimally invasive surgical procedures within the cardiovascular system in conjunction with its proprietary excimer laser system, the CVX-300. Market cap of $245.21M. Estimated EPS growth over the next five years at 45.0%. The stock is currently trading at 2.79% above its 20-Day SMA, 12.41% above its 50-Day SMA and 28.39% above its 200-Day SMA. Of the six analysts that have set a target price on the stock, the lowest price target stands at $9.00. This implies a current upside of 22.28% from current levels around $7.36. The stock is a short squeeze candidate, with a short float at 5.39% (equivalent to 10.45 days of average volume). The stock has had a couple of great days, gaining 5.19% over the last week.

4. Omnicell Inc. (NASDAQ:OMCL):
Offers automated solutions for hospital medication dispensing and supply management primarily in the United States and Canada. Market cap of $504.06M. Estimated EPS growth over the next five years at 26.50%. The stock is currently trading at 4.98% above its 20-Day SMA, 3.62% above its 50-Day SMA, and 3.15% above its 200-Day SMA. Of the seven analysts that have set a target price on the stock, the lowest price target stands at $18.00. This implies a current upside of 21.05% from current levels around $14.87. The stock is a short squeeze candidate, with a short float at 6.06% (equivalent to 8.75 days of average volume). The stock has had a couple of great days, gaining 8.49% over the last week.

5. Echo Global Logistics, Inc. (NASDAQ:ECHO):
Provides technology enabled transportation and supply chain management services in the United States. Market cap of $322.50M. Estimated EPS growth over the next five years at 30.78%. The stock is currently trading at 10.68% above its 20-Day SMA, 9.62% above its 50-Day SMA, and 6.12% above its 200-Day SMA. Of the six analysts that have set a target price on the stock, the lowest price target stands at $17.00. This implies a current upside of 21.0% from current levels around $14.05. The stock is a short squeeze candidate, with a short float at 18.54% (equivalent to 20.35 days of average volume). The stock has had a couple of great days, gaining 11.91% over the last week.

6. Team Inc. (NYSE:TISI):
Provides specialty maintenance and construction services for maintaining high temperature and high pressure piping systems and vessels that are primarily utilized in heavy industries. Market cap of $491.12M. Estimated EPS growth over the next five years at 31.05%. The stock is currently trading at 9.03% above its 20-Day SMA, 8.26% above its 50-Day SMA, and 2.59% above its 200-Day SMA. Of the five analysts that have set a target price on the stock, the lowest price target stands at $30.00. This implies a current upside of 19.76% from current levels around $25.05. The stock has had a couple of great days, gaining 6.84% over the last week.

7. ClickSoftware Technologies Ltd. (NASDAQ:CKSW):
Provides workforce and service management software products and solutions. Market cap of $290.37M. Estimated EPS growth over the next five years at 37.67%. The stock is currently trading at 13.79% above its 20-Day SMA, 13.43% above its 50-Day SMA, and 8.50% above its 200-Day SMA. Of the five analysts that have set a target price on the stock, the lowest price target stands at $11.00. This implies a current upside of 15.18% from current levels around $9.55. The stock has had a good month, gaining 17.91%.

*Target price data sourced from Thomson/First Call (via 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: 7 Rallying, High Growth Stocks Deeply Undervalued By Target Price