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Do you consider yourself a value investor? We ran a screen with that idea in mind.

We began by screening for stocks that are technically oversold, with Relative Strength Index readings over the last 14 days below 40. We then screened for those that appear undervalued relative to earnings growth, with PEG below 1.

Finally, we screened for strong sales trends by comparing growth in revenue to growth in inventory over the last year. We screened for stocks with positive sales trends, with faster growth in revenue than inventory over the last year. Since inventory represents the portion of goods not yet sold, faster growth in revenue than inventory is considered an encouraging sign.

To screen for strengthening liquidity, we also only focused on those companies with inventory decreasing as a percent of current assets.

For an ‪interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

click for interactive chart

Tool provided by Kapitall

Do you think these stocks are undervalued? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. RealD Inc. (RLD): Licenses stereoscopic three-dimensional or 3D technologies internationally. Market cap at $553.22M, most recent closing price at $10.20. PEG at 0.76. RSI(14) at 32.8. Revenue grew by 14.47% during the most recent quarter ($68.18M vs. $59.56M y/y). Inventory grew by -64.14% during the same time period ($22.01M vs. $61.37M y/y). Inventory, as a percentage of current assets, decreased from 45.88% to 16.88% during the most recent quarter (comparing 3 months ending 2012-06-22 to 3 months ending 2011-06-24).

2. Diebold, Incorporated (DBD): Provides integrated self-service delivery and security systems and services primarily to the financial, commercial, government, and retail markets worldwide. Market cap at $2.06B, most recent closing price at $32.31. PEG at 0.9. RSI(14) at 39.08. Revenue grew by 12.2% during the most recent quarter ($743.19M vs. $662.38M y/y). Inventory grew by -2.17% during the same time period ($486.09M vs. $496.86M y/y). Inventory, as a percentage of current assets, decreased from 27.75% to 26.99% during the most recent quarter (comparing 3 months ending 2012-06-30 to 3 months ending 2011-06-30).

3. Body Central Corp. (BODY): Operates as a specialty retailer of young women's apparel and accessories in the South, Mid-Atlantic, and Midwest regions of the United States. Market cap at $137.77M, most recent closing price at $8.44. PEG at 0.38. RSI(14) at 32.19. Revenue grew by 6.28% during the most recent quarter ($79.36M vs. $74.67M y/y). Inventory grew by 0.11% during the same time period ($18.1M vs. $18.08M y/y). Inventory, as a percentage of current assets, decreased from 33.79% to 26.04% during the most recent quarter (comparing 13 weeks ending 2012-06-30 to 13 weeks ending 2011-07-02).

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 3 Undervalued And Oversold Small Caps With Strong Inventory Trends