8 High-Growth Consumer Goods Stocks Undervalued By Target Price

|
Includes: DAN, DMND, GIII, GPK, GT, KS, MTOR, VRA
by: Kapitall

Do you consider yourself a value investor? For ideas on how to start your own search for potentially undervalued stocks, we ran a screen you might be interested in.

We began by screening the consumer goods sector for stocks with high projected growth, with 5-year projected EPS growth above 15%.

We then screened for those that appear undervalued relative to analyst target price, which we use as a proxy for fair value. Since target prices are known to suffer from upward biases, we only used the lowest, most pessimistic analyst target price. For stocks with sufficient analyst coverage, we also only considered stocks with at least 5 analyst target prices.

Interactive Chart: Press Play to compare changes in market cap over the last two years for six of 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.

List sorted by potential upside implied by analyst target price.

1. Dana Holding Corporation (NYSE:DAN): Engages in the design, manufacture, and supply of products for vehicle manufacturers worldwide. Market cap at $2.02B, most recent closing price at $13.67. 5-year projected EPS growth at 31.56%. Of the 10 analysts that have set a target price on the stock, the lowest price target stands at $18.00. This implies a current upside of 31.48% from current levels around $13.69.

2. Goodyear Tire & Rubber Co. (NYSE:GT): Engages in the development, manufacture, distribution, and sale of tires, and related products and services to consumer and commercial customers worldwide. Market cap at $2.65B, most recent closing price at $10.82. 5-year projected EPS growth at 27.80%. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $14.00. This implies a current upside of 29.15% from current levels around $10.84.

3. Vera Bradley, Inc. (NASDAQ:VRA): Engages in the design, production, marketing, and retail of functional accessories for women under the Vera Bradley brand. Market cap at $1.04B, most recent closing price at $25.60. 5-year projected EPS growth at 20.88%. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $32.00. This implies a current upside of 24.61% from current levels around $25.68.

4. Meritor, Inc. (NYSE:MTOR): Provides drivetrain mobility and braking solutions for original equipment manufacturers of trucks, trailers, and specialty vehicles. Market cap at $570.56M, most recent closing price at $6.01. 5-year projected EPS growth at 51.00%. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $7.50. This implies a current upside of 24.38% from current levels around $6.03.

5. G-III Apparel Group, Ltd. (NASDAQ:GIII): Designs, manufactures, imports, and markets a range of outerwear and sportswear apparel to retailers primarily in the United States. Market cap at $510.63M, most recent closing price at $25.46. 5-year projected EPS growth at 17.50%. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $31.00. This implies a current upside of 21.24% from current levels around $25.57.

6. KapStone Paper and Packaging Corporation (NYSE:KS): Engages in the production and sale of unbleached kraft, linerboard, saturating kraft, and unbleached folding carton boards primarily in the Americas, Europe, and Asia. Market cap at $774.59M, most recent closing price at $16.65. 5-year projected EPS growth at 25.21%. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $20.00. This implies a current upside of 20.19% from current levels around $16.64.

7. Diamond Foods, Inc. (NASDAQ:DMND): Engages in processing, marketing, and distributing snack products, as well as culinary, in-shell, and ingredient nuts. Market cap at $467.23M, most recent closing price at $21.15. 5-year projected EPS growth at 17.50%. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $25.00. This implies a current upside of 18.04% from current levels around $21.18.

8. Graphic Packaging Holding Company (NYSE:GPK): Provides packaging solutions in the United States, Canada, Central/South America, Europe, and the Asia-Pacific. Market cap at $2.03B, most recent closing price at $5.20. 5-year projected EPS growth at 17.00%. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $6.00. This implies a current upside of 16.28% from current levels around $5.16.

*Target price data sourced from Thomson/First Call (via 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.