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The market may be throwing a git, but recently we've noticed some companies are just tuning out the noise. Instead, these companies just keep pushing higher and higher while also outperforming the S&P 500. The real big bonus with these names though is that they're fairly undervalued from a price-multiple perspective. Currently, we feel these names are worth reviewing because they are trading at cheap valuations, have impressive profitability, and enough bullish momentum to probably keep going higher.

The forward P/E is a price multiple valuation metric, which is similar to the current P/E ratio except that it uses the forecasted earnings instead. While this number might not be as accurate because it’s “forecasted”, it does offer the benefit of illustrating analysts’ expectations of a firm. If the market believes that earnings will grow moving forward then the forward P/E should be lower than the current P/E.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability. This profitability metric is generally a key driver in the price of the stock as it directly correlates to the profitability of the firm as a whole.

We first looked for stocks trading that offer a low price-multiple valuation (Forward P/E<10) that also have sound profitability (1-year fiscal EPS growth rate>10%). From this narrowed list of candidates we then looked for companies that have recently picked up bullish momentum by out performing the S&P 500 over the last month. We did not screen out any sectors or market caps.

The list is ranked from highest to lowest by the forward P/E:

1. Royal Caribbean Cruises, Ltd. (RCL)

Sector

Consumer Cyclical

Industry

Resorts & Casinos

Market Cap

$6,456M

Beta

3.21

The company operates to brands in the cruise vacation industry. The company has a forward P/E of 9.36 & a 1-year fiscal EPS rate of 234.67%. RCL has gained by 37.34% value in the last month alone. The short interest was 7.00% as of 10/14/2011.

2. Sonic Automotive Inc. (SAH)

Sector

Consumer Cyclical

Industry

Auto & Truck Dealerships

Market Cap

$778M

Beta

4.03

The company is an automotive retailer that has dealership franchises. The company has a forward P/E of 9.33 & a 1-year fiscal EPS rate of 47.66%. SAH has gained by 35.96% value in the last month alone. The short interest was 30.90% as of 10/14/2011.

3. Asiainfo-Linkage, Inc. (ASIA)

Sector

Technology

Industry

Software - Application

Market Cap

$721M

Beta

0.77

The company offers telecom software solutions and IT security products in China. The company has a forward P/E of 6.24 & a 1-year fiscal EPS rate of 21.92%. ASIA has gained by 35.77% value in the last month alone. The short interest was 24.30% as of 10/14/2011.

4. Perry Ellis International, Inc. (PERY)

Sector

Consumer Cyclical

Industry

Apparel Manufacturing

Market Cap

$411M

Beta

2.32

The company designs and sells men's and women's apparel. The company has a forward P/E of 8.98 & a 1-year fiscal EPS rate of 68.32%. PERY has gained by 33.51% value in the last month alone. The short interest was 14.70% as of 10/14/2011.

5. Cliffs Natural Resources Inc. (CLF)

Sector

Basic Materials

Industry

Steel

Market Cap

$9,961M

Beta

2.45

The company produces & sells iron ore pellets in North America. The company has a forward P/E of 4.60 & a 1-year fiscal EPS rate of 359.51%. CLF has gained by 33.32% value in the last month alone. The short interest was N/A as of 10/14/2011.

6. Freeport-McMoRan Copper & Gold. (FCX)

Sector

Basic Materials

Industry

Copper

Market Cap

$38,162M

Beta

1.86

The company mines and produces copper, gold, and silver. The company has a forward P/E of 7.96 & a 1-year fiscal EPS rate of 55.97%. FCX has gained by 33.04% value in the last month alone. The short interest was 2.00% as of 10/14/2011.

7. Owens-Illinois Inc. (OI)

Sector

Consumer Cyclical

Industry

Packaging & Containers

Market Cap

$3,298M

Beta

2.15

The Company is a manufactures glass containers & packaging products. The company has a forward P/E of 7.05 & a 1-year fiscal EPS rate of 138.46%. OI has gained by 32.80% value in the last month alone. The short interest was 3.00% as of 10/14/2011.

8. Trina Solar Limited. (TSL)

Sector

Technology

Industry

Solar

Market Cap

$641M

Beta

3.17

The company makes and sells integrated solar-power products. The company has a forward P/E of 8.38 & a 1-year fiscal EPS rate of 33.33%. TSL has gained by 32.73% value in the last month alone. The short interest was N/A as of 10/14/2011.

9. Cooper Tire & Rubber Company. (CTB)

Sector

Consumer Cyclical

Industry

Rubber & Plastics

Market Cap

$892M

Beta

2.54

The company makes replacement tires. The company has a forward P/E of 8.44 & a 1-year fiscal EPS rate of 20.78%. CTB has gained by 31.59% value in the last month alone. The short interest was 6.80% as of 10/14/2011.

10. Tata Motors, Ltd. (TTM)

Sector

Consumer Cyclical

Industry

Auto Manufacturers

Market Cap

$11,179M

Beta

2.20

The company designs and sells automobiles along with a variety machine-related items. The company has a forward P/E of 6.75 & a 1-year fiscal EPS rate of 70.65%. TTM has gained by 30.36% value in the last month alone. The short interest was N/A as of 10/14/2011.

We hope this list helps as investors do their own due diligence and research on bullish stocks with cheap price-multiple valuations.

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

Source: 10 Profitable, Cheap Stocks With Bullish Performance