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Do you like to invest in stocks that you believe are trading below their fair value?

For ideas on how to get started on your search, we ran a screen on the biotech industry for stocks that appear undervalued relative to their EPS growth.

Based on the theory that P/E is equal to a constant k, changes in EPS should be matched by proportionate increases in price. When they don't match up, a mispricing may have occurred. That is, if EPS rises faster than price, there may be more value left to price in.

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 6.04 to 6.05 over the last 30 days, an increase of 0.17%. This increase came during a time when the stock price changed by -0.38% (from 68.06 to 67.80 over the last 30 days).

2. Anika Therapeutics Inc. (NASDAQ:ANIK): Develops, manufactures, and commercializes therapeutic products for tissue protection, healing, and repair. The EPS estimate for the company's current year increased from 0.72 to 0.81 over the last 30 days, an increase of 12.5%. This increase came during a time when the stock price changed by 4.59% (from 10.89 to 11.39 over the last 30 days).

3. Illumina Inc. (NASDAQ:ILMN): Develops, manufactures, and markets integrated systems for the analysis of genetic variation and biological function. The EPS estimate for the company's current year increased from 1.4 to 1.47 over the last 30 days, an increase of 5.%. This increase came during a time when the stock price changed by -3.08% (from 52.15 to 50.54 over the last 30 days).

4. Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR): Provides prescription drugs for central nervous system and inflammatory disorders. The EPS estimate for the company's current year increased from 1.98 to 2.21 over the last 30 days, an increase of 11.62%. This increase came during a time when the stock price changed by 3.67% (from 36.74 to 38.09 over the last 30 days).

5. ViroPharma Inc. (VPHM): Engages in the development and commercialization of products that address serious diseases with a focus on products used by physician specialists or in hospital settings in the United States and internationally. The EPS estimate for the company's current year increased from 1.59 to 1.67 over the last 30 days, an increase of 5.03%. This increase came during a time when the stock price changed by -3.13% (from 30.32 to 29.37 over the last 30 days).

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

Source: 5 Biotech Stocks Undervalued By EPS Trends