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

If you consider yourself a value investor, here are some ideas to get started on your stock search.

We ran a screen on stocks that have had positive performance over the last quarter for those that still appear undervalued, with PEG below 1 and P/FCF below 15. We then screened these names to find those with the highest profitability, with higher gross, operating, and pretax margins than their industry peers.

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.‬

Do you think these names should be trading higher? Use this list as a starting point for your own analysis.

1. Apple Inc. (NASDAQ:AAPL): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. PEG at 0.76. P/FCF at 12.42. TTM gross margin at 44.12% vs. industry average at 43.02%. TTM operating margin at 33.87% vs. industry average at 26.42%. TTM pretax margin at 34.2% vs. industry average at 26.53%.

2. AmTrust Financial Services, Inc. (NASDAQ:AFSI): Operates as a multinational specialty property and casualty insurance company in the United States and internationally. PEG at 0.76. P/FCF at 8.39. TTM gross margin at 21.28% vs. industry average at 12.62%. TTM operating margin at 17.76% vs. industry average at 9.99%. TTM pretax margin at 17.43% vs. industry average at 9.%.

3. Sotheby's (NYSE:BID): An auctioneer of various properties including fine art, antiques, decorative art, jewelry, and collectibles. PEG at 0.78. P/FCF at 8.37. TTM gross margin at 57.22% vs. industry average at 52.42%. TTM operating margin at 36.25% vs. industry average at 21.%. TTM pretax margin at 30.47% vs. industry average at 18.05%.

4. Bridgepoint Education, Inc. (NYSE:BPI): Provides postsecondary education services. PEG at 0.4. P/FCF at 7.12. TTM gross margin at 74.5% vs. industry average at 52.42%. TTM operating margin at 31.3% vs. industry average at 21.%. TTM pretax margin at 31.56% vs. industry average at 18.05%.

5. China Green Agriculture, Inc. (NYSE:CGA): Engages in the research, development, manufacture, distribution, and sale of humic acid based compound fertilizers in China. PEG at 0.25. P/FCF at 12.42. TTM gross margin at 39.01% vs. industry average at 37.22%. TTM operating margin at 23.44% vs. industry average at 17.28%. TTM pretax margin at 23.29% vs. industry average at 16.25%.

6. CNO Financial Group, Inc. (NYSE:CNO): Engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. PEG at 0.52. P/FCF at 2.36. TTM gross margin at 23.32% vs. industry average at 12.62%. TTM operating margin at 11.96% vs. industry average at 9.99%. TTM pretax margin at 9.03% vs. industry average at 9.%.

7. Capella Education Co. (NASDAQ:CPLA): Provides online postsecondary education services in the United States. PEG at 0.73. P/FCF at 9.27. TTM gross margin at 66.15% vs. industry average at 52.34%. TTM operating margin at 21.02% vs. industry average at 20.96%. TTM pretax margin at 21.05% vs. industry average at 18.%.

8. Discover Financial Services (NYSE:DFS): Operates as a credit card issuer and electronic payment services company primarily in the United States. PEG at 0.78. P/FCF at 4.63. TTM gross margin at 47.89% vs. industry average at 43.08%. TTM operating margin at 46.84% vs. industry average at 40.33%. TTM pretax margin at 41.1% vs. industry average at 25.15%.

9. Encore Capital Group, Inc. (NASDAQ:ECPG): Engages in consumer debt buying and recovery business. PEG at 0.75. P/FCF at 8.05. TTM gross margin at 72.4% vs. industry average at 40.43%. TTM operating margin at 25.84% vs. industry average at 14.79%. TTM pretax margin at 21.24% vs. industry average at 11.25%.

10. Full House Resorts Inc. (NASDAQ:FLL): Develops, manages, invests in, and owns gaming-related enterprises. PEG at 0.91. P/FCF at 2.14. TTM gross margin at 56.04% vs. industry average at 35.25%. TTM operating margin at 25.9% vs. industry average at 18.66%. TTM pretax margin at 21.5% vs. industry average at 17.65%.

11. MetLife, Inc. (NYSE:MET): Provides insurance, annuities, and employee benefit programs primarily in the United States, Japan, Latin America, the Asia Pacific, Europe, and the Middle East. PEG at 0.74. P/FCF at 4.08. TTM gross margin at 15.93% vs. industry average at 12.62%. TTM operating margin at 15.93% vs. industry average at 9.99%. TTM pretax margin at 12.82% vs. industry average at 9.%.

12. Nelnet Inc. (NYSE:NNI): Focuses on providing fee-based processing services, and education-related products and services in the areas of loan financing, loan servicing, payment processing, and enrollment services. PEG at 0.43. P/FCF at 3.61. TTM gross margin at 60.28% vs. industry average at 43.57%. TTM operating margin at 57.42% vs. industry average at 39.65%. TTM pretax margin at 35.07% vs. industry average at 25.11%.

13. Orbotech Ltd. (NASDAQ:ORBK): Engages in the design, development, manufacture, marketing, and service of yield-enhancing and production solutions for specialized applications in the supply chain of the electronics industry. PEG at 0.43. P/FCF at 8.99. TTM gross margin at 42.21% vs. industry average at 35.36%. TTM operating margin at 11.04% vs. industry average at 9.16%. TTM pretax margin at 9.77% vs. industry average at 9.34%.

14. Rick's Cabaret International Inc. (NASDAQ:RICK): Operates upscale adult nightclubs serving primarily businessmen and professionals in the United States. PEG at 0.24. P/FCF at 10.29. TTM gross margin at 65.24% vs. industry average at 35.56%. TTM operating margin at 21.8% vs. industry average at 18.77%. TTM pretax margin at 18.19% vs. industry average at 17.92%.

15. Sauer-Danfoss Inc. (NYSE:SHS): Designs, manufactures, and markets hydraulic, electronic, and mechanical components, as well as software and integrated systems that generate, transmit, and control power in mobile equipment. PEG at 0.56. P/FCF at 7.85. TTM gross margin at 37.26% vs. industry average at 32.94%. TTM operating margin at 19.27% vs. industry average at 13.36%. TTM pretax margin at 17.82% vs. industry average at 11.21%.

16. Symetra Financial Corporation (NYSE:SYA): Operates as a financial services company in the life insurance industry in the United States. PEG at 0.71. P/FCF at 1.31. TTM gross margin at 15.56% vs. industry average at 12.66%. TTM operating margin at 15.56% vs. industry average at 10.01%. TTM pretax margin at 13.96% vs. industry average at 9.02%.

*Profitability data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 16 Highly Undervalued And Profitable Stocks