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Do you like to look for a bargain, even among stocks? With this idea in mind, we ran a screen. We began with stocks that are technically oversold, with Relative Strength Index (RSI) scores over the last 14 days below 40. We then found those that also appear undervalued relative to EPS trends.

Based on the assumption that P/E is equal to a constant k, increases in EPS should be matched by increases in price. When they don't match up, a mispricing may have occurred. We screened for stocks with faster growth in EPS estimates than price over the last month, which may indicate that these names are being undervalued.

We then screened for those that also have strong profitability, with higher gross, operating, and pretax margins than their industry peers by at least 5% on each margin. This indicates that these companies are taking a greater percentage of sales as profit, and they may have a greater control over their cost structure.

Interactive Chart: Press Play to compare changes in market cap over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

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

List sorted by difference between growth in EPS and change in price.

1. Weight Watchers International, Inc. (WTW): Provides weight management services worldwide. Market cap at $5.38B. Price at $74.00. RSI(14) at 38.29. TTM gross margin at 59.53% vs. industry average at 52.68%. TTM operating margin at 30.03% vs. industry average at 20.42%.TTM pretax margin at 26.56% vs. industry average at 18.05%. The EPS estimate for the company's current year increased from 4.44 to 4.96 over the last 30 days, an increase of 11.71%. This increase came during a time when the stock price changed by -6.49% (from 79.22 to 74.08 over the last 30 days).

2. F5 Networks, Inc. (FFIV): Provides technology that optimizes the delivery of network-based applications, and the security, performance, and availability of servers, data storage devices, and other network resources in the Americas, EMEA, Japan, and the Asia Pacific. Market cap at $9.66B. Price at $124.29. RSI(14) at 39.39. TTM gross margin at 83.97% vs. industry average at 60.74%. TTM operating margin at 30.75% vs. industry average at 19.83%.TTM pretax margin at 31.53% vs. industry average at 20.09%. The EPS estimate for the company's current year increased from 4.48 to 4.49 over the last 30 days, an increase of 0.22%. This increase came during a time when the stock price changed by -7.99% (from 132.73 to 122.12 over the last 30 days).

3. Fastenal Co. (FAST): The company is engaged as a wholesaler and retailer of industrial and construction supplies. Market cap at $14.29B. Price at $49.06. RSI(14) at 35.05. TTM gross margin at 53.25% vs. industry average at 37.98%. TTM operating margin at 20.98% vs. industry average at 14.1%.TTM pretax margin at 20.98% vs. industry average at 12.94%. The EPS estimate for the company's current year increased from 1.48 to 1.49 over the last 30 days, an increase of 0.68%. This increase came during a time when the stock price changed by -6.19% (from 52.01 to 48.79 over the last 30 days).

Profitability data sourced from Fidelity; EPS data sourced from Yahoo Finance; all other data sourced from Finviz.

Source: 3 Oversold And Undervalued Stocks With Impressive Profitability