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Interested in finding undervalued stocks? For ideas on where to look, we ran a screen you might be interested in.

We screened the biotech industry for stocks that appear undervalued relative to EPS trends. Based on the theoretical assumption that if P/E is equal to a constant K, growth in EPS estimates should be matched by proportionate growth in price. When they don't match up, a mispricing may have occurred. We screened for those exhibiting this mismatch between changes in EPS estimate and price.

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 should be trading higher? Use this list as a starting point for your own analysis.

1. Amgen Inc. (NASDAQ:AMGN): Develops, manufactures, and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses primarily in the United States, Europe, and Canada. The EPS estimate for the company's current year increased from 5.86 to 6.04 over the last 30 days, an increase of 3.07%. This increase came during a time when the stock price changed by 2.31% (from 65.67 to 67.19 over the last 30 days).

2. Albany Molecular Research Inc. (NASDAQ:AMRI): Provides contract services to various pharmaceutical and biotechnology companies primarily in the United States, Europe, and Asia. The EPS estimate for the company's current year increased from 0.07 to 0.09 over the last 30 days, an increase of 28.57%. This increase came during a time when the stock price changed by 0.% (from 2.99 to 2.99 over the last 30 days).

3. Celgene Corporation (NASDAQ:CELG): Develops, and commercializes various therapies to treat cancer and immune-inflammatory related diseases. The EPS estimate for the company's current year increased from 4.53 to 4.84 over the last 30 days, an increase of 6.84%. This increase came during a time when the stock price changed by 2.73% (from 70.26 to 72.18 over the last 30 days).

4. Momenta Pharmaceuticals Inc. (NASDAQ:MNTA): Specializes in the in the characterization and process engineering of complex molecules. The EPS estimate for the company's current year increased from 3.83 to 3.84 over the last 30 days, an increase of 0.26%. This increase came during a time when the stock price changed by -17.95% (from 19.33 to 15.86 over the last 30 days).

5. Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI): Primarily focuses on oncology and hematology. The EPS estimate for the company's current year increased from 0.97 to 1.02 over the last 30 days, an increase of 5.15%. This increase came during a time when the stock price changed by -14.49% (from 15.87 to 13.57 over the last 30 days).

*EPS data sourced from Yahoo! Finance, 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.

Source: 5 Biotech Stocks Undervalued By EPS Trends