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Do you consider yourself a value investor? If so, here are some ideas to keep in mind.

We ran a screen on highly undervalued stocks, with PEG below 1 and P/FCF below 15. We screened these stocks for those with encouraging trends in revenue relative to inventory: growth in revenue exceeding growth in inventory year-over-year, as well as inventory becoming a smaller percentage of current assets.

These trends suggest improving quality of sales and liquidity.

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 companies have strong sales trends? Use this list as a starting point for your own analysis.

1. Caribou Coffee Company, Inc. (NASDAQ:CBOU): Operates coffeehouses primarily in the United States. PEG at 0.43. P/FCF at 11.75. Revenue grew by 16.06% during the most recent quarter ($81.44M vs. $70.17M y/y). Inventory grew by -26.2% during the same time period ($23.01M vs. $31.18M y/y). Inventory, as a percentage of current assets, decreased from 58.48% to 28.37% during the most recent quarter (comparing 13 weeks ending 2011-10-02 to 13 weeks ending 2010-10-03).

2. CF Industries Holdings, Inc. (NYSE:CF): Manufactures and distributes nitrogen and phosphate fertilizer products, serving agricultural and industrial customers worldwide. PEG at 0.69. P/FCF at 5.45. Revenue grew by 53.07% during the most recent quarter ($1,403.8M vs. $917.1M y/y). Inventory grew by 26.01% during the same time period ($341.6M vs. $271.1M y/y). Inventory, as a percentage of current assets, decreased from 22.61% to 16.6% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).

3. Culp Inc. (NYSE:CFI): Manufactures, sources, and markets mattress fabrics and upholstery fabrics to the furniture and bedding industries in North America and internationally. PEG at 0.33. P/FCF at 11.2. Revenue grew by 18.68% during the most recent quarter ($58.01M vs. $48.88M y/y). Inventory grew by 14.78% during the same time period ($33.78M vs. $29.43M y/y). Inventory, as a percentage of current assets, decreased from 44.9% to 42.92% during the most recent quarter (comparing 13 weeks ending 2011-10-30 to 13 weeks ending 2010-10-31).

4. CyberOptics Corp. (NASDAQ:CYBE): Supplies optical process control sensors and inspection systems to control the manufacturing process and ensure the quality of electronic circuit boards worldwide. PEG at 0.88. P/FCF at 9.02. Revenue grew by 20.86% during the most recent quarter ($17.09M vs. $14.14M y/y). Inventory grew by -18.56% during the same time period ($12.02M vs. $14.76M y/y). Inventory, as a percentage of current assets, decreased from 32.26% to 23.49% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).

5. Gruma S.A.B. de CV (NYSE:GMK): Engages in the production, marketing, distribution, and sale of tortillas, corn flour, wheat flour, and related products. PEG at 0.08. P/FCF at 8.83. Revenue grew by 17.24% during the most recent quarter ($13,078.82M vs. $11,155.19M y/y). Inventory grew by -2.23% during the same time period ($5,397.93M vs. $5,520.82M y/y). Inventory, as a percentage of current assets, decreased from 39.51% to 37.18% during the most recent quarter (comparing 3 months ending 2011-06-30 to 3 months ending 2010-03-31).

6. IRSA Investments and Representations Inc. (NYSE:IRS): Engages in a range of diversified real estate related activities in Argentina. PEG at 0.89. P/FCF at 5.41. Revenue grew by 12.03% during the most recent quarter ($343.68M vs. $306.78M y/y). Inventory grew by -17.65% during the same time period ($241.86M vs. $293.69M y/y). Inventory, as a percentage of current assets, decreased from 25.26% to 21.38% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).

7. ITT Corporation (NYSE:ITT): Designs, manufactures, and sells a range of engineered products, and provides related services worldwide. PEG at 0.32. P/FCF at 4.11. Revenue grew by 12.79% during the most recent quarter ($2,981M vs. $2,643M y/y). Inventory grew by 7.32% during the same time period ($1,011M vs. $942M y/y). Inventory, as a percentage of current assets, decreased from 22.12% to 15.44% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).

8. Navistar International Corp. (NYSE:NAV): Manufactures and sells commercial and military trucks, buses, diesel engines, recreational vehicles (RVs), and chassis, as well as provides service parts for trucks and trailers. PEG at 0.16. P/FCF at 7.57. Revenue grew by 28.2% during the most recent quarter ($4,323M vs. $3,372M y/y). Inventory grew by 9.31% during the same time period ($1,714M vs. $1,568M y/y). Inventory, as a percentage of current assets, decreased from 26.87% to 23.69% during the most recent quarter (comparing 3 months ending 2011-10-31 to 3 months ending 2010-10-31).

9. Noranda Aluminum Holding Corp. (NYSE:NOR): Engages in the production and sale of primary aluminum products and rolled aluminum coils in the United States. PEG at 0.29. P/FCF at 11.02. Revenue grew by 27.42% during the most recent quarter ($400.4M vs. $314.23M y/y). Inventory grew by 4.08% during the same time period ($203.9M vs. $195.91M y/y). Inventory, as a percentage of current assets, decreased from 51.89% to 40.85% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).

10. Omega Protein Corp. (NYSE:OME): Distributes fish meal and fish oil products in the United States. PEG at 0.43. P/FCF at 3.59. Revenue grew by 28.08% during the most recent quarter ($71.74M vs. $56.01M y/y). Inventory grew by 16.76% during the same time period ($82.77M vs. $70.89M y/y). Inventory, as a percentage of current assets, decreased from 60.51% to 49.77% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).

11. SYNNEX Corp. (NYSE:SNX): Provides distribution and business process outsourcing services to resellers, retailers, and original equipment manufacturers. PEG at 0.93. P/FCF at 7.92. Revenue grew by 15.1% during the most recent quarter ($2,840.97M vs. $2,468.22M y/y). Inventory grew by 6.89% during the same time period ($975.05M vs. $912.24M y/y). Inventory, as a percentage of current assets, decreased from 41.29% to 39.99% during the most recent quarter (comparing 3 months ending 2011-11-30 to 3 months ending 2010-11-30).

12. Steel Dynamics Inc. (NASDAQ:STLD): Engages in the manufacture and sale of steel products in the United States. PEG at 0.75. P/FCF at 14.78. Revenue grew by 21.61% during the most recent quarter ($1,858.35M vs. $1,528.13M y/y). Inventory grew by 7.68% during the same time period ($1,199.58M vs. $1,114.06M y/y). Inventory, as a percentage of current assets, decreased from 55.7% to 48.86% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

13. TPC Group Inc (NASDAQ:TPCG): Produces specialized lines of chemical products to chemical and petroleum based companies worldwide. PEG at 0.39. P/FCF at 10.45. Revenue grew by 67.24% during the most recent quarter ($835.28M vs. $499.44M y/y). Inventory grew by 42.48% during the same time period ($164.65M vs. $115.56M y/y). Inventory, as a percentage of current assets, decreased from 33.68% to 30.46% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).

14. G. Willi Food-International Ltd. (NASDAQ:WILC): Engages in the development, manufacture, marketing, import, export, and distribution of various food products worldwide. PEG at 0.68. P/FCF at 10.46. Revenue grew by 7.06% during the most recent quarter ($85.34M vs. $79.71M y/y). Inventory grew by 3.3% during the same time period ($43.5M vs. $42.11M y/y). Inventory, as a percentage of current assets, decreased from 13.94% to 13.29% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 14 Highly Undervalued Stocks With Encouraging Inventory Trends