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In the never-ending search for potentially undervalued stocks, we present an idea of how to look for these underpriced names.

Focusing on retail stocks, we ran a screen on about 120 stocks involved in retail for those trading at the most significant discounts to their 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 5 analyst target prices (to make sure we only focus on companies that have decent analyst coverage).

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 potential upside implied by target price.

1. Office Depot, Inc. (NYSE:ODP): Supplies office products and services. Market cap of $642.28M. Of the 13 analysts that have set a target price on the stock, the lowest price target stands at $3.00. This implies a current upside of 31.0% from current levels around $2.29. This is a risky stock that is significantly more volatile than the overall market (beta = 3.16). It's been a rough couple of days for the stock, losing 9.84% over the last week. The stock has had a good month, gaining 11.17%.

2. Body Central Corp. (OTCQB:BODY): Operates as a specialty retailer of young women's apparel and accessories in the South, Mid-Atlantic, and Midwest regions of the United States. Market cap of $333.06M. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $27.00. This implies a current upside of 28.57% from current levels around $21.00. The stock is a short squeeze candidate, with a short float at 8.03% (equivalent to 6. days of average volume). The stock has had a good month, gaining 15.64%.

3. Titan Machinery, Inc. (NASDAQ:TITN): Operates a network of full service agricultural and construction equipment stores in the United States. Market cap of $484.10M. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $28.00. This implies a current upside of 20.02% from current levels around $23.33. The stock has had a good month, gaining 30.34%.

4. Quiksilver Inc. (NYSE:ZQK): Designs, produces, and distributes branded apparel, footwear, accessories, and related products. Market cap of $553.29M. Of the 9 analysts that have set a target price on the stock, the lowest price target stands at $4.00. This implies a current upside of 19.40% from current levels around $3.35. This is a risky stock that is significantly more volatile than the overall market (beta = 2.49). The stock has lost 19.28% over the last year.

5. Crocs, Inc. (NASDAQ:CROX): Engages in the design, development, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children. Market cap of $1.58B. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $21.00. This implies a current upside of 18.85% from current levels around $17.67. The stock has performed poorly over the last month, losing 25.38%.

*Target price data sourced from Thomson/First Call (via Yahoo! Finance), all other data sourced from Finviz.

Source: 5 Retail Stocks Trading At Steep Discounts To Their Target Prices