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Are you interested in the industrial sector, where companies produce real material and tangible goods? Today we searched for industrial companies whose fundamentals suggest that they are trading below their true value, meaning that now might be the time to buy. As a way to hone in on only the best of the best, we only looked at companies with strong analyst ratings. You might be interested in the list our screen produced.

The Price/Sales ratio is a price-multiple valuation metric used to help identify if a firm is cheap by its twelve month trailing sales numbers. In the most basic terms it let's an investor know how much the investment community is willing to pay for every dollars worth of sales. A firm with a P/S ratio of one or lower would be viewed as cheap because investors are paying $1 or less for every dollars worth of a firm's sales. On the other hand, a firm is generally considered to be expensive when the P/S ratio is above three. These are general guidelines used by the investment community not hard rules to be clear. Price/Sales Ratio = Current Stock Price/Revenue (sales) per Share

The Price/Cash Flow ratio is a price-multiple valuation metric that also measures a firm's future financial health. An advantage of using cash flow is that it removes non-cash factors, which helps provide a clearer picture of how much money the firm is taking in from a valuation standpoint. Price/Cash Flow Ratio = Current Stock Price/Cash Flow Per Share

We first looked for industrial stocks. We then screened for businesses that analysts rate as "Strong Buy" (mean recommendation < 2). We then looked for companies that are trading at a discount (P/S<1)(P/CFO<10). We did not screen out any market caps.

Do you think these stocks offer both value and growth? Use our list along with your own analysis.

1) CECO Environmental Corp. (NASDAQ:CECE)

Sector:Industrial Goods
Industry:Pollution & Treatment Controls
Market Cap:$106.65M
Beta:1.28

CECO Environmental Corp. has a Analysts' Rating of 1.50, a Price/Sales Ratio of 0.78, and a Price/Cash Flow Ratio of 5.37. The short interest was 0.25% as of 06/22/2012. CECO Environmental Corp. provides air-pollution control technology products and services worldwide. The company offers engineered equipment, cyclones, scrubbers, dampers, diverters, regenerative thermal oxidizers, component parts, and monitoring and managing services. Its Engineered Equipment Technology and Parts Group segment provides air handling equipment and systems for filtering, cooling, heating, and capturing emissions in the metal industries; systems for corrosion protection, fugitive emissions control, evaporative cooling, and other ventilation and air handling applications; and fume exhaust systems that provide control of oil mist and fumes, as well as remove liquid particles and vapor phase emissions from rolling mill, machining, and other oil mist generating processes.

2) Park-Ohio Holdings Corp. (NASDAQ:PKOH)

Sector:Industrial Goods
Industry:Metal Fabrication
Market Cap:$210.54M
Beta:2.03

Park-Ohio Holdings Corp. has a Analysts' Rating of 1.00, a Price/Sales Ratio of 0.21, and a Price/Cash Flow Ratio of 4.72. The short interest was 3.36% as of 06/22/2012. Park-Ohio Holdings Corp., through its subsidiaries, engages in the industrial supply chain logistics and diversified manufacturing business in the United States, Asia, Canada, Mexico, and Europe. The company operates in three segments: Supply Technologies, Aluminum Products, and Manufactured Products. The Supply Technologies segment provides supply chain management services for specialty production components.

3) Unifi Inc. (NYSE:UFI)

Sector:Industrial Goods
Industry:Textile Industrial
Market Cap:$240.88M
Beta:1.83

Unifi Inc. has a Analysts' Rating of 1.00, a Price/Sales Ratio of 0.34, and a Price/Cash Flow Ratio of 6.25. The short interest was 3.49% as of 06/22/2012. Unifi, Inc., together with its subsidiaries, processes and sells polyester and nylon yarns. The company provides polymer beads, partially oriented, textured, solution and package dyed, twisted, and beamed polyester yarns; and textured, solution dyed, and covered spandex nylon yarns.

*Company profiles were sourced from Finviz.

Source: 3 Mispriced Industrials With Strong Analyst Confidence