After a large sell-off over the summer due to poor earnings and guidance at a major competitor, Life Technologies (LIFE) looks to be poised to rebound.
1. LIFE has bounced several times off the $36 level and looks to have established some technical support there (See Chart).
2. It is selling at the absolute bottom of its five year valuation range based on P/E, P/B, P/S and P/CF.
3. LIFE is significantly under analysts’ price targets. The median analysts’ price target on Life Technologies is $51 and S&P has a $58 price target on LIFE.
4. Two insiders make significant new purchases in August at higher levels.
5. LIFE has a forward PE of just 9.5 which is a 40% discount to its five year average. The company has also grown earnings at an average clip of 21% over the last half decade.
6. The stock is selling for less than 10 times operating cash flow and has a projected five year PEG of less than 1.
7. It has a low beta (.82) and is projected to grow earnings at 14% on average over the next three years by S&P.
Disclosure: I am long LIFE.