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Interested in diversifying into emerging markets? We ran a screen with this sentiment in mind.

We screened for U.S.-traded stocks of companies based in the BRIC nations (Brazil, Russia, India, and China) for those that may be undervalued, by comparing price trends to changes in EPS estimates over the last month.

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.

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

Tool provided by Kapitall (www.kapitall.com).

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

List sorted by increase in EPS estimate over the last year.

1. Huaneng Power International Inc. (NYSE:HNP): Engages in the generation and sale of electric power to the regional or provincial grid companies in the People's Republic of China. Market cap at $10.4B, most recent closing price at $28.21. The EPS estimate for the company's current year increased from 2.51 to 2.77 over the last 30 days, an increase of 10.36%. This increase came during a time when the stock price changed by -0.18% (from 28.37 to 28.32 over the last 30 days).

2. TIM Participaes S.A. (NYSE:TSU): Provides mobile telecommunications services through global system mobile (NASDAQ:GSM) technology to business and individual customers in Brazil. Market cap at $5.34B, most recent closing price at $21.68. The EPS estimate for the company's current year increased from 1.77 to 1.93 over the last 30 days, an increase of 9.04%. This increase came during a time when the stock price changed by -20.17% (from 27.62 to 22.05 over the last 30 days).

3. 7 Days Group Holdings Limited (NYSE:SVN): Operates limited service economy hotels under the brand name of "7 Days Inn" in the People's Republic of China. Market cap at $482.81M, most recent closing price at $9.66. The EPS estimate for the company's current year increased from 3.53 to 3.74 over the last 30 days, an increase of 5.95%. This increase came during a time when the stock price changed by -4.03% (from 10.43 to 10.01 over the last 30 days).

*EPS 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.

Source: 3 BRIC Stocks Undervalued By EPS Trends