Finding stocks that are currently unloved by the market can frequently uncover equities that will outperform in the following year. Here are two $10 stocks selling at low price to sales and small PE ratios as well as PEG’s of under 1 to consider.
Huntsman Corporation (HUN) – “Huntsman Corporation engages in the manufacture and sale of differentiated organic and inorganic chemical products worldwide. Its products comprise a range of chemicals and formulations, which are marketed to consumer and industrial customers.” (Business description from Yahoo Finance)
4 reasons Huntsman is a solid bargain at $10:
- The stock provides a generous 4.2% dividend yield.
- Huntsman is selling at just 20% of trailing revenue and has five-year projected PEG of .75.
- After a sharp sell-off over the summer, HUN looks like it is building a technical base at just under $10 (See Chart).
- Huntsman is more than 40% under consensus analysts’ price target of $14.50.
(Click chart to expand)
Brightpoint (CELL) – “Brightpoint, Inc. provides supply chain solutions to the wireless technology industry. The company offers customized logistic services, including procurement, inventory management, software loading, kitting and customized packaging, fulfillment, credit services and receivables management, call center and activation services, Web site hosting, e-fulfillment solutions, repair and remanufacture services, reverse logistics, transportation management, sale of prepaid airtime, and other services within the wireless industry”. (Business description from Yahoo Finance)
4 reasons why Brightpoint is a solid long term buy at $10 a share:
- The stock is selling in the bottom third of its five-year valuation range based on P/E, P/S and P/CF.
- CELL is selling at 9 times forward earnings and at 7 times operating cash flow.
- The median analysts’ price target is $13 on Brightpoint.
- The stock is selling at just 15% of trailing revenue and has five-year projected PEG of .63.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in HUN over the next 72 hours.