Do you consider yourself a value investor? For a look at potentially undervalued names, we ran a screen.
We began by screening for highly undervalued stocks, with PEG ratios below 1 and P/FCF ratios below 15.
We then screened for those with strong positive correlations to the volatility (VIX) index over the last two months. This indicates that these stocks have tended to outperform when market uncertainty and volatility spiked. This may bode well if the market sees more volatility in the future. Of course, past performance is no guarantee of future returns.
For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.
Tool provided by Kapitall. More investing ideas on Kapitall Wire.
Do you think more volatility is in store for the market? Use this list as a starting point for your own analysis.
List sorted by correlation with VIX over the last 60 days.
1. City Telecom HK Ltd. (CTEL): Market cap at $184.05M, most recent closing price at $4.49. PEG at 0.22. P/FCF at 2.32. Correlation with the VIX index at 0.601 over the last 60 days.
2. Ford Motor Co. (F): Develops, manufactures, distributes, and services vehicles and parts worldwide. Market cap at $34.69B, most recent closing price at $9.17. PEG at 0.26. P/FCF at 7.41. Correlation with the VIX index at 0.579 over the last 60 days.
3. Dolby Laboratories, Inc. (DLB): Develops and delivers products and technologies for the entertainment industry worldwide. Market cap at $3.28B, most recent closing price at $31.20. PEG at 0.84. P/FCF at 9.61. Correlation with the VIX index at 0.565 over the last 60 days.
4. Aetna Inc. (AET): Operates as a diversified health care benefits company in the United States. Market cap at $12.27B, most recent closing price at $36.82. PEG at 0.66. P/FCF at 5.81. Correlation with the VIX index at 0.547 over the last 60 days.
5. Diamond Foods, Inc. (DMND): Engages in processing, marketing, and distributing snack products, as well as culinary, in-shell, and ingredient nuts. Market cap at $360.24M, most recent closing price at $16.32. PEG at 0.38. P/FCF at 10.84. Correlation with the VIX index at 0.508 over the last 60 days.
*Price data sourced from 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.