Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message| ()  

Looking for attractively priced growth stocks?

To help you explore this theme, we started with a universe of about 200 high growth stocks, with projected earnings per share growth above 20% over the next five years.

To refine the list, we collected data on valuation ratios, and identified a list of deeply undervalued growth stocks. All of the stocks mentioned below have cheaper valuations 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.

Valuations suggest that these growth companies should be on your 2012 watch list--do you agree?

List sorted by projected growth rate.

1. Stillwater Mining Co. (SWC): Engages in the development, extraction, processing, refining, and marketing of palladium, platinum, and associated metals in south central Montana, the United States. Market cap of $1.27B. Analyst projected EPS growth over the next 5 years at 45.0%. TTM P/E at 8.6 vs. industry average at 8.97. PEG at 0.19 vs. industry average at 0.28. TTM P/CF at 5.5 vs. industry average at 7.1. This is a risky stock that is significantly more volatile than the overall market (beta = 2.31). The stock has had a couple of great days, gaining 5.06% over the last week.

2. Superior Energy Services, Inc. (SPN): Provides specialized oilfield services and equipment to serve the production and drilling related needs of oil and gas companies. Market cap of $2.33B. Analyst projected EPS growth over the next 5 years at 37.30%. TTM P/E at 18.46 vs. industry average at 19.32. PEG at 0.5 vs. industry average at 0.71. TTM P/CF at 6.11 vs. industry average at 10.98. The stock is a short squeeze candidate, with a short float at 25.84% (equivalent to 6.49 days of average volume). The stock has had a couple of great days, gaining 11.4% over the last week.

3. IAC/InterActiveCorp. (IACI): Engages in the Internet business in the United States and internationally. Market cap of $3.47B. Analyst projected EPS growth over the next 5 years at 36.03%. TTM P/E at 38.17 vs. industry average at 41.25. PEG at 1.06 vs. industry average at 1.41. TTM P/CF at 19.04 vs. industry average at 23.2. The stock has gained 42.64% over the last year.

4. Epocrates, Inc. (EPOC): Provides mobile drug reference tools to healthcare professionals and interactive services to the healthcare industry in the United States. Market cap of $194.97M. Analyst projected EPS growth over the next 5 years at 34.67%. TTM P/E at 35.61 vs. industry average at 53.94. PEG at 1.32 vs. industry average at 2.44. TTM P/CF at 14.01 vs. industry average at 25.1. The stock has gained 0.% over the last year.

5. Shutterfly, Inc. (SFLY): Provides an Internet-based social expression and personal publishing service that enables consumers to share, print, and preserve their memories through the medium of photography. Market cap of $870.22M. Analyst projected EPS growth over the next 5 years at 34.25%. TTM P/E at 54.81 vs. industry average at 62.39. PEG at 1.47 vs. industry average at 2.06. TTM P/CF at 17.58 vs. industry average at 28.27. The stock is currently stuck in a downtrend, trading -6.23% below its SMA20, -29.61% below its SMA50, and -47.6% below its SMA200. The stock has had a couple of great days, gaining 5.86% over the last week.

6. 7 Days Group Holdings Limited (SVN): Operates limited service economy hotels under the brand name of "7 Days Inn" in the People's Republic of China. Market cap of $576.35M. Analyst projected EPS growth over the next 5 years at 31.34%. TTM P/E at 29.03 vs. industry average at 31.14. PEG at 1.08 vs. industry average at 1.78. TTM P/CF at 10.16 vs. industry average at 14.35. Relatively low correlation to the market (beta = 0.), which may be appealing to risk averse investors. The stock is currently stuck in a downtrend, trading -9.78% below its SMA20, -18.11% below its SMA50, and -35.79% below its SMA200. The stock has lost 47.81% over the last year.

7. Kforce Inc. (KFRC): Provides professional and technical specialty staffing services and solutions to the federal government, state and local governments, local and regional companies, and small to mid-sized companies in the United States. Market cap of $465.80M. Analyst projected EPS growth over the next 5 years at 29.14%. TTM P/E at 17.94 vs. industry average at 26.09. PEG at 0.76 vs. industry average at 1.74. TTM P/CF at 12.64 vs. industry average at 15.51. The stock is a short squeeze candidate, with a short float at 5.7% (equivalent to 5.8 days of average volume). The stock has had a couple of great days, gaining 9.82% over the last week.

8. Baker Hughes Incorporated (BHI): Supplies wellbore related products, and technology services and systems for drilling, formation evaluation, completion and production, and reservoir technology and consulting to the oil and natural gas industry worldwide. Market cap of $21.75B. Analyst projected EPS growth over the next 5 years at 27.88%. TTM P/E at 12.13 vs. industry average at 19.32. PEG at 0.39 vs. industry average at 0.71. TTM P/CF at 6.91 vs. industry average at 10.98. The stock has had a couple of great days, gaining 11.18% over the last week.

9. Halliburton Company (HAL): Provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide. Market cap of $30.86B. Analyst projected EPS growth over the next 5 years at 27.65%. TTM P/E at 11.4 vs. industry average at 19.33. PEG at 0.44 vs. industry average at 0.71. TTM P/CF at 7.69 vs. industry average at 10.98. The stock has had a couple of great days, gaining 7.29% over the last week.

10. Century Aluminum Co. (CENX): Produces primary aluminum in the United States, Iceland, and internationally. Market cap of $795.65M. Analyst projected EPS growth over the next 5 years at 26.75%. TTM P/E at 8.18 vs. industry average at 8.95. PEG at 0.41 vs. industry average at 0.91. TTM P/CF at 4.69 vs. industry average at 6.86. This is a risky stock that is significantly more volatile than the overall market (beta = 3.37). The stock has lost 43.8% over the last year.

11. DXP Enterprises, Inc. (DXPE): Distributes maintenance, repair, and operating products (mro), equipment, and services to industrial customers in the U. Market cap of $460.93M. Analyst projected EPS growth over the next 5 years at 25.80%. TTM P/E at 17.51 vs. industry average at 18.24. PEG at 0.68 vs. industry average at 1.37. TTM P/CF at 12.06 vs. industry average at 13.66. Exhibiting strong upside momentum--currently trading 8.64% above its SMA20, 22.23% above its SMA50, and 34.36% above its SMA200. The stock has had a couple of great days, gaining 6.59% over the last week.

12. EQT Corporation (EQT): Operates as an integrated energy company in the United States. Market cap of $8.29B. Analyst projected EPS growth over the next 5 years at 25.67%. TTM P/E at 18.12 vs. industry average at 22.24. PEG at 0.71 vs. industry average at 1.52. TTM P/CF at 10.63 vs. industry average at 11.3. The stock has gained 25.13% over the last year.

13. Lithia Motors Inc. (LAD): Operates as an automotive franchisee and retailer of new and used vehicles. Market cap of $583.98M. Analyst projected EPS growth over the next 5 years at 25.03%. TTM P/E at 13.81 vs. industry average at 17.01. PEG at 0.61 vs. industry average at 1.24. TTM P/CF at 9.81 vs. industry average at 11.53. The stock is a short squeeze candidate, with a short float at 17.25% (equivalent to 8.37 days of average volume). The stock has gained 59.67% over the last year.

*EPS data sourced from Yahoo Finance, all other data sourced from Finviz.

Source: Top 13 Undervalued Growth Stocks For 2012