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One way to search for potentially undervalued names is by comparing current price to mean analyst target price. Stocks trading at significant discounts to target may be undervalued.

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).

We screened small-cap US-traded stocks (with market caps under $500 million) for those trading at the steepest discounts to even their most pessimistic 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.

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. Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN): Engages in the discovery, development, and commercialization of treatments for infectious diseases. Market cap of $361.85M. Of the 11 analysts that have set a target price on the stock, the lowest price target stands at $7.00. This implies a current upside of 34.87% from current levels around $5.19. The stock is a short squeeze candidate, with a short float at 7.92% (equivalent to 10.2 days of average volume). It's been a rough couple of days for the stock, losing 15.88% over the last week.

2. Jiayuan.com International Ltd. (NASDAQ:DATE): Operates an online dating platform in the People's Republic of China. Market cap of $457.50M. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $13.00. This implies a current upside of 34.58% from current levels around $9.66. The stock has had a couple of great days, gaining 10.02% over the last week.

3. Titan Machinery, Inc. (NASDAQ:TITN): Operates a network of full service agricultural and construction equipment stores in the United States. Market cap of $444.26M. 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 30.78% from current levels around $21.41. It's been a rough couple of days for the stock, losing 6.38% over the last week.

4. 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 $328.94M. 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 30.18% from current levels around $20.74. The stock is a short squeeze candidate, with a short float at 8.03% (equivalent to 6.06 days of average volume). The stock has gained 53.97% over the last year.

5. Wabash National Corp. (NYSE:WNC): Engages in the design, manufacture, and marketing of truck trailers and related transportation equipment primarily in North America. Market cap of $474.91M. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $9.00. This implies a current upside of 29.87% from current levels around $6.93. This is a risky stock that is significantly more volatile than the overall market (beta = 2.32). The stock is a short squeeze candidate, with a short float at 14.08% (equivalent to 8. days of average volume). It's been a rough couple of days for the stock, losing 5.59% over the last week. The stock has had a good month, gaining 12.32%.

6. Avanir Pharmaceuticals (NASDAQ:AVNR): Engages on acquiring, developing, and commercializing novel therapeutic products for the treatment of central nervous system disorders primarily in the United States. Market cap of $336.55M. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $3.50. This implies a current upside of 29.15% from current levels around $2.71. This is a risky stock that is significantly more volatile than the overall market (beta = 2.41). The stock is a short squeeze candidate, with a short float at 26.12% (equivalent to 18.53 days of average volume). The stock has performed poorly over the last month, losing 14.51%.

7. InfoSpace, Inc. (INSP): Develops search tools and technologies that assist consumers with finding content and information on the Internet. Market cap of $326.95M. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $11.00. This implies a current upside of 28.35% from current levels around $8.57. Might be undervalued at current levels, with a PEG ratio at 0.82, and P/FCF ratio at 11.31. The stock has gained 10.72% over the last year.

8. MAP Pharmaceuticals, Inc. (NASDAQ:MAPP): Focuses on the development and commercialization of inhalation therapies for patients suffering from migraine. Market cap of $427.10M. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $18.00. This implies a current upside of 28.21% from current levels around $14.04. This is a risky stock that is significantly more volatile than the overall market (beta = 2.78). The stock is a short squeeze candidate, with a short float at 6.62% (equivalent to 15.32 days of average volume). The stock has lost 6.02% over the last year.

9. Orbotech Ltd. (NASDAQ:ORBK): Engages in the design, development, manufacture, marketing, and service of yield-enhancing and production solutions for specialized applications in the supply chain of the electronics industry. Market cap of $361.33M. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $13.00. This implies a current upside of 27.33% from current levels around $10.21. The stock has lost 7.18% over the last year.

10. MYR Group, Inc. (NASDAQ:MYRG): Provides utility and electrical construction services in the continental United States. Market cap of $385.36M. Of the 11 analysts that have set a target price on the stock, the lowest price target stands at $24.00. This implies a current upside of 27.05% from current levels around $18.89. It's been a rough couple of days for the stock, losing 5.17% over the last week.

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

Source: 10 Small-Cap Stocks Deeply Undervalued By Target Price