If you’re interested in stocks that appear undervalued by several different measures, here are some ideas to get you started. We ran a screen on the tech sector for stocks that appear undervalued by TTM P/E, PEG, and TTM P/CF, with lower price multiples than their industry averages.
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 point for your own analysis.
List sorted by TTM P/E.
1. SanDisk Corp. (SNDK): Designs, develops, manufactures, and markets NAND-based flash data storage card products that are used in various consumer electronics products. Market cap of $12.02B. TTM P/E at 10.19 vs. industry average at 14.45. PEG at 0.58 vs. industry average at 0.98. TTM P/CF at 8.91 vs. industry average at 11.96. The stock has gained 0.34% over the last year.
2. Intel Corporation (INTC): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap of $122.21B. TTM P/E at 10.26 vs. industry average at 21.55. PEG at 0.92 vs. industry average at 1.5. TTM P/CF at 6.91 vs. industry average at 16.34. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.5%, current ratio at 2.24, and quick ratio at 1.91. The stock has gained 15.61% over the last year.
3. Nippon Telegraph & Telephone Corp. (NTT): Provides telecommunications services to residential and business customers in Japan. Market cap of $65.66B. TTM P/E at 10.42 vs. industry average at 25.41. PEG at 1.29 vs. industry average at 3.04. TTM P/CF at 2.13 vs. industry average at 4.79. The stock has gained 8.91% over the last year.
4. Agilent Technologies Inc. (A): Provides bio-analytical and electronic measurement solutions to the communications, electronics, life sciences, and chemical analysis industries in the United States and internationally. Market cap of $11.71B. TTM P/E at 11.88 vs. industry average at 17.95. PEG at 0.79 vs. industry average at 1.34. TTM P/CF at 9.25 vs. industry average at 11.05. It's been a rough couple of days for the stock, losing 8.99% over the last week.
5. Analog Devices Inc. (ADI): Engages in the design, manufacture, and marketing of analog, mixed-signal, and digital signal processing integrated circuits used in industrial, communication, computer, and consumer applications. Market cap of $10.24B. TTM P/E at 12.32 vs. industry average at 21.58. PEG at 1.45 vs. industry average at 1.53. TTM P/CF at 10.5 vs. industry average at 16.36. The stock has lost 6.02% over the last year.
6. Taiwan Semiconductor Manufacturing Co. Ltd. (TSM): Engages in the computer-aided designing, manufacturing, packaging, testing, and selling integrated circuits and other semiconductor devices; and manufacturing masks. Market cap of $67.02B. TTM P/E at 13.19 vs. industry average at 21.58. PEG at 1.13 vs. industry average at 1.53. TTM P/CF at 8.6 vs. industry average at 16.36. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 4.01%, current ratio at 1.82, and quick ratio at 1.58. The stock has gained 13.22% over the last year.
7. Altera Corp. (ALTR): Designs, manufactures, and markets programmable logic devices; structured application-specific integrated circuit devices; predefined design building blocks or intellectual-property cores; and associated development tools. Market cap of $11.42B. TTM P/E at 13.58 vs. industry average at 21.58. PEG at 1.01 vs. industry average at 1.53. TTM P/CF at 12.91 vs. industry average at 16.36. It's been a rough couple of days for the stock, losing 5.4% over the last week.
8. LM Ericsson Telephone Co. (ERIC): Provides communications equipment, professional services, and multimedia solutions to mobile and fixed networks operators worldwide. Market cap of $31.78B. TTM P/E at 13.68 vs. industry average at 19.19. PEG at 1.37 vs. industry average at 1.38. TTM P/CF at 8.73 vs. industry average at 15.52. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.8%, current ratio at 1.93, and quick ratio at 1.56. It's been a rough couple of days for the stock, losing 6.45% over the last week.
9. International Business Machines Corp. (IBM): Provides information technology products and services worldwide. Market cap of $226.51B. TTM P/E at 15.16 vs. industry average at 17.85. PEG at 1.38 vs. industry average at 1.4. TTM P/CF at 11.29 vs. industry average at 14.22. The stock has gained 35.45% over the last year.
10. Broadcom Corp. (BRCM): Designs and develops semiconductors for wired and wireless communications. Market cap of $15.78B. TTM P/E at 17.63 vs. industry average at 21.58. PEG at 1.15 vs. industry average at 1.53. TTM P/CF at 13.96 vs. industry average at 16.36. The stock has performed poorly over the last month, losing 13.99%.
11. Google Inc. (GOOG): The world's most popular search engine. Market cap of $202.56B. TTM P/E at 21.32 vs. industry average at 44.74. PEG at 1.12 vs. industry average at 1.43. TTM P/CF at 17.86 vs. industry average at 24.38. The stock has gained 5.17% over the last year.
Price multiples sourced from Fidelity; all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
