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Looking to European stocks for your portfolio? Now that the slightest sneezes from the powers that be in Europe aren't rocking the stock market as they were in 2011, the market is seeming a bit more attractive. With this in mind, we created a list of high growth European stocks that may be considered undervalued by popular technical indicators.

To create the list below, we started by screening European stocks with market caps above $300 million for those with a PEG below 1 and P/E ratio below 15. Low P/Es are attractive because nobody wants to overpay for good growth -- although this number may indicate there is little growth at all.

To find stocks with high growth expectations, we then screened for names with 5-year EPS growth projected at 15% or higher. We were left with the eight names listed below.

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

(click image to enlarge)


As a recap, the stocks listed below have: EPS Growth next 5 years>15%, PEG <1, and P/E <15, a market cap above $300 million, and are based in Europe.

Even if you consider these names undervalued based on their technical indicators, we wanted to make sure potential investors have more data on hand. We note where these stocks have been flagged in our various bullish and bearish screens.

Do you think these names are currently undervalued? List sorted by PEG. List Average 1-Year Return: 37%

1. Telefonica, S.A. (TEF): Provides fixed and mobile telephony services primarily in Spain, the rest of Europe, and Latin America. Market cap at $65.95B, most recent closing price at $14.45. P/E: 3.86. PEG: 0.25. EPS growth for the next five years projected at 15.2%. This stock has a notably bullish accounting signal regarding account receivable trends: Accounts receivable grew by -5.46% during the same time period ($12,748M vs. $13,484M y/y). Receivables as a percentage of current assets decreased from 67.05% to 58.04% during the most recent quarter (comparing three months ending 06-30-2012 to three months ending 06-30-2011).

2. Seagate Technology PLC (STX): Designs, manufactures, markets, and sells hard disk drives for the enterprise, client compute, and client non-compute market applications in the United States and internationally. Market cap at $11.77B, most recent closing price at $30.02. P/E: 4.8. PEG: 0.19. EPS growth for the next five years projected at 25.67%.

This stock in particular is plagued with bad signs, making it more of a contrarian play:

- To start, it is less profitable than its industry competitors: TTM gross margin at 36.55% vs. industry average at 45.57%. TTM operating margin at 20.98% vs. industry average at 29.8%. TTM pretax margin at 19.29% vs. industry average at 29.33%.

- It is also seeing significant institutional selling: Net institutional sales in the current quarter at -26.6M shares, which represents about 8.13% of the company's float of 327.23M shares.

- On a losing streak: The stock's average daily alpha vs. the S&P500 index stands at -0.79% (measured close to close, over the last month). During this period, the longest losing streak lasted five days (i.e., the stock's daily returns underperformed the S&P 500 for five consecutive days). The longest winning streak lasted two days (i.e,. a win streak/losing streak ratio of 0.4).

3. Navios Maritime Holdings Inc. (NM): Operates as a seaborne shipping and logistics company in Greece. Market cap at $400.5M, most recent closing price at $3.91. P/E: 11.56. PEG: 0.72. EPS growth for the next five years projected at 16%. Another potentially contrarian play, this stock has a accounting flag regarding account receivable trends: Revenue grew by 4.07% during the most recent quarter ($172.08M vs. $165.35M y/y). Accounts receivable grew by 38.51% during the same time period ($172.54M vs. $124.57M y/y). Receivables as a percentage of current assets increased from 23.9% to 42.86% during the most recent quarter (comparing three months ending 06-30-2012 to three months ending 06-30-2011).

4. AEGON N.V. (AEG): Provides life insurance, pensions, and asset management products and services worldwide. Market cap at $10.78B, most recent closing price at $5.55. P/E: 11.89. PEG: 0.64. EPS growth for the next five years projected at 18.45%.

5. Siemens AG (SI): Operates in the industry, energy, and healthcare sectors worldwide. Market cap at $90.87B, most recent closing price at $103.14. P/E: 11.93. PEG: 0.51. EPS growth for the next five years projected at 23.45%. This stock has concerning account receivable trends: Accounts receivable grew by 15.21% during the same time period ($16,769M vs. $14,555M y/y). Receivables as a percentage of current assets increased from 27.03% to 31.67% during the most recent quarter (comparing three months ending 06-30-2012 to three months ending 06-30-2011).

6. Ensco plc (ESV): Provides offshore contract drilling services to the oil and gas industry. Market cap at $13.43B, most recent closing price at $57.91. P/E: 12.97. PEG: 0.84. EPS growth for the next five years projected at 15.43%.

7. Elan Corporation, plc (ELN): Operates as a neuroscience-based biotechnology company primarily in Ireland and the United States. Market cap at $6.62B, most recent closing price at $11.16. P/E: 13.76. PEG: 0.74. EPS growth for the next five years projected at 18.7%.

8. Chicago Bridge & Iron Company N.V. (CBI): Provides engineering, procurement, and construction (EPC) solutions, as well as process technologies for energy infrastructure projects. Market cap at $3.86B, most recent closing price at $39.95. P/E: 14.21. PEG: 0.82. EPS growth for the next five years projected at 17.38%. This stock has a notably bullish accounting signal regarding account receivable trends: Revenue grew by 19.7% during the most recent quarter ($1,299.53M vs. $1,085.7M y/y). Accounts receivable grew by 7.13% during the same time period ($622.65M vs. $581.21M y/y). Receivables as a percentage of current assets decreased from 41.83% to 37.74% during the most recent quarter (comparing three months ending 06-30-2012 to three months ending 06-30-2011).

*Profitability and institutional data sourced from Fidelity, price and accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 8 Undervalued European Stocks With Low P/E And High Earnings Growth