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Interested in exposure to the retail industry? Here are some ideas to get started on your stock search.

We ran a screen on a universe of stocks of the retail industry for those that appear undervalued by two measures: by earnings growth, with PEG below 1, and by the Graham Number.

The Graham Number was created by the "godfather of value investing" Benjamin Graham as a calculation for maximum fair value. It is based off of a stock's EPS and book value per share (BVPS).

Graham Number = SQRT(22.5 x TTM EPS x MRQ BVPS)

The equation assumes that P/E should not be higher than 15 and P/BV should not be higher than 1.5. Stocks trading well below their Graham Number may be undervalued.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the 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 are attractively priced? Use this list as a starting point for your own analysis.

List sorted by potential upside implied by Graham.

1. Stein Mart Inc. (NASDAQ:SMRT): Operates retail stores that offer fashion merchandise for women and men in the United States. PEG at 0.66. Diluted TTM earnings per share at 0.72, and a MRQ book value per share value at 5.86, implies a Graham Number fair value = sqrt(22.5*0.72*5.86) = $9.74. Based on the stock's price at $7.31, this implies a potential upside of 33.29% from current levels.

2. Iconix Brand Group, Inc. (NASDAQ:ICON): Operates as a brand management company that engages in licensing, marketing, and providing trend direction for a portfolio of owned consumer brands. PEG at 0.69. Diluted TTM earnings per share at 1.6, and a MRQ book value per share value at 15.95, implies a Graham Number fair value = sqrt(22.5*1.6*15.95) = $23.96. Based on the stock's price at $18.4, this implies a potential upside of 30.23% from current levels.

3. Shoe Carnival Inc. (NASDAQ:SCVL): Operates as a family footwear retailer. PEG at 0.82. Diluted TTM earnings per share at 2.04, and a MRQ book value per share value at 21, implies a Graham Number fair value = sqrt(22.5*2.04*21) = $31.05. Based on the stock's price at $25.1, this implies a potential upside of 23.69% from current levels.

4. Staples, Inc. (NASDAQ:SPLS): Operates as an office products company. PEG at 0.94. Diluted TTM earnings per share at 1.37, and a MRQ book value per share value at 10.24, implies a Graham Number fair value = sqrt(22.5*1.37*10.24) = $17.77. Based on the stock's price at $14.78, this implies a potential upside of 20.21% from current levels.

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

Source: 4 Retail Stocks Undervalued By Earnings Growth And The Graham Number