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Looking for undervalued stocks? Value investors looks for opportunities to buy stocks that are trading at significant discounts to their fair value, with the assumption that they’ll move up to their fair value in the near future. One proxy for fair value is analyst target price.

We ran a screen on stocks that use or produce clean sources of energy (a.k.a. “clean energy stocks”) for those trading at steep discounts to their analyst target prices, which may indicate that they are undervalued.

But because target prices are notoriously inflated, we only used the most pessimistic (the lowest) target prices, and for stocks with sufficient analyst coverage we only screened for stocks with 5 or more analyst ratings.

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 potential upside implied by target price.

1. Warren Resources Inc. (NASDAQ:WRES): Engages in the exploration, development, and production of onshore crude oil and gas reserves in the United States. Market cap of $213.84M. Price (as of market close on 12/19) at $2.99. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $4.00. This implies a current upside of 33.33% from current levels around $3.00. This is a risky stock that is significantly more volatile than the overall market (beta = 2.74). The stock has lost 29.15% over the last year.

2. ZIOPHARM Oncology, Inc. (NASDAQ:ZIOP): Focuses on the development and commercialization of in-licensed cancer drugs in North America. Market cap of $301.18M. Price (as of market close on 12/19) at $4.40. Of the 8 analysts that have set a target price on the stock, the lowest price target stands at $6.00. This implies a current upside of 33.04% from current levels around $4.51. The stock is a short squeeze candidate, with a short float at 14.54% (equivalent to 17.38 days of average volume). The stock has lost 10.02% over the last year.

3. Capstone Turbine Corp. (NASDAQ:CPST): Develops, manufactures, markets, and services turbine generator sets and related parts for use in stationary distributed power generation applications. Market cap of $280.53M. Price (as of market close on 12/19) at $1.08. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $1.50. This implies a current upside of 30.43% from current levels around $1.15. The stock is a short squeeze candidate, with a short float at 15.77% (equivalent to 16.99 days of average volume). The stock has gained 3.85% over the last year.

4. Denny's Corporation (NASDAQ:DENN): Engages in the ownership and operation of a chain of family-style restaurants. Market cap of $370.99M. Price (as of market close on 12/19) at $3.85. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $5.00. This implies a current upside of 30.21% from current levels around $3.84. Might be undervalued at current levels, with a PEG ratio at 0.88, and P/FCF ratio at 14.18. The stock has had a couple of great days, gaining 17.38% over the last week.

5. Array BioPharma, Inc. (NASDAQ:ARRY): Focuses on the discovery, development, and commercialization of small molecule drugs to treat patients afflicted with cancer and inflammatory diseases in North America, Europe, and the Asia Pacific. Market cap of $127.33M. Price (as of market close on 12/19) at $2.18. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $3.00. This implies a current upside of 29.31% from current levels around $2.32. It's been a rough couple of days for the stock, losing 7.63% over the last week.

6. eResearchTechnology, Inc. (NASDAQ:ERT): Provides technological services and medical devices in North America and the United Kingdom. Market cap of $224.53M. Price (as of market close on 12/19) at $4.56. Of the 8 analysts that have set a target price on the stock, the lowest price target stands at $6.00. This implies a current upside of 29.03% from current levels around $4.65. The stock has lost 37.62% over the last year.

7. Willbros Group Inc. (NYSE:WG): Provides engineering, procurement, and construction (EPC) services to the oil and gas, refinery, petrochemical, and power industries primarily in the United States, Canada, and Oman. Market cap of $153.42M. Price (as of market close on 12/19) at $3.16. Of the 8 analysts that have set a target price on the stock, the lowest price target stands at $4.00. This implies a current upside of 27.80% from current levels around $3.13. This is a risky stock that is significantly more volatile than the overall market (beta = 2.49). The stock is a short squeeze candidate, with a short float at 7.13% (equivalent to 6.56 days of average volume). It's been a rough couple of days for the stock, losing 11.73% over the last week.

8. Magnum Hunter Resources Corp. (NYSE:MHR): Engages in the acquisition, development, and production of oil and natural gas primarily in West Virginia, North Dakota, Texas, and Louisiana. Market cap of $582.58M. Price (as of market close on 12/19) at $4.52. Of the 15 analysts that have set a target price on the stock, the lowest price target stands at $6.00. This implies a current upside of 27.12% from current levels around $4.72. The stock has lost 27.45% over the last year.

9. PowerSecure International, Inc. (NYSE:POWR): Provides energy technology products, services, and data management systems to industrial and commercial users, and suppliers of natural gas and electricity. Market cap of $93.33M. Price (as of market close on 12/19) at $4.92. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $6.50. This implies a current upside of 25.48% from current levels around $5.18. The stock is a short squeeze candidate, with a short float at 8.77% (equivalent to 12.34 days of average volume). It's been a rough couple of days for the stock, losing 13.99% over the last week.

10. Gastar Exploration, Ltd. (NYSEMKT:GST): Engages in the acquisition, exploration, development, and production of natural gas and oil in the United States. Market cap of $198.63M. Price (as of market close on 12/19) at $3.07. Of the 10 analysts that have set a target price on the stock, the lowest price target stands at $4.00. This implies a current upside of 24.61% from current levels around $3.21. The stock is a short squeeze candidate, with a short float at 6.96% (equivalent to 11.43 days of average volume). It's been a rough couple of days for the stock, losing 8.63% over the last week.

11. Lionbridge Technologies Inc. (NASDAQ:LIOX): Provides language, development, and testing services. Market cap of $134.47M. Price (as of market close on 12/19) at $2.17. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $2.75. This implies a current upside of 24.43% from current levels around $2.21. The stock has lost 42.74% over the last year.

12. Anadigics, Inc. (NASDAQ:ANAD): Provides semiconductor solutions to the broadband wireless and wireline communications markets. Market cap of $137.70M. Price (as of market close on 12/19) at $2.02. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $2.60. This implies a current upside of 23.81% from current levels around $2.10. This is a risky stock that is significantly more volatile than the overall market (beta = 2.24). It's been a rough couple of days for the stock, losing 9.01% over the last week.

13. Crimson Exploration Inc. (NASDAQ:CXPO): Engages in the acquisition, exploitation, exploration, and development of natural gas and crude oil properties primarily in East Texas, Southeast Texas, South Texas, Colorado, Mississippi, and Southwest Louisiana. Market cap of $108.76M. Price (as of market close on 12/19) at $2.41. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $3.00. This implies a current upside of 23.46% from current levels around $2.43. It's been a rough couple of days for the stock, losing 10.07% over the last week.

14. Golden Star Resources, Ltd. (NYSEMKT:GSS): A gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. Market cap of $398.27M. Price (as of market close on 12/19) at $1.54. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $2.00. This implies a current upside of 22.70% from current levels around $1.63. It's been a rough couple of days for the stock, losing 21.03% over the last week.

15. U.S. Auto Parts Network, Inc. (NASDAQ:PRTS): Operates as a distributor of aftermarket auto parts and accessories in the United States. Market cap of $142.43M. Price (as of market close on 12/19) at $4.65. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $6.00. This implies a current upside of 22.70% from current levels around $4.89. The stock has had a good month, gaining 18.02%.

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

Source: 15 Stocks Under $5 Deeply Discounted From Target Price