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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).


(Click to enlarge)

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.

Source: Life Technologies: Broken Stock Appears To Be Poised To Rebound