Kapitall's  Instablog

The following is a list of companies that are undervalued, when comparing current price to the average analyst target price (according to Zacks Investment Research). All of these stocks are part of the S&P 500 index.

The list was compiled by using Kapitall's screener tool (free registration required). All discount values are based on the closing values of Thursday, June 10. Other data provided by Finviz.

A more detailed analysis follows below. Here is the output from Kapitall's screener:



Massey Energy (MEE): -41.21% discount to avg. analyst target price ($30.74 v $52.29 target price). Target price based on survey of 18 analysts. Short float of 7.48%. Current ratio of 4.00. P/C ratio of 2.76. Debt/Equity ratio of 74%. Institutions, who currently own 85.89%, boosted holdings by 8.53% over the last 3 months as the stock declined.

Dynegy (DYN): -40.97% discount to avg. analyst target price ($4.87 v $8.25 target price). Target price based on survey of 13 analysts. Insiders, who currently own 0.17%, reduced holdings by 77.3% over the last 3 months. Short float of 20.29%. Short ratio of 7.60. P/C ratio of 0.75.

Micron Technology (MU): -39.14% discount to avg. analyst target price ($8.77 v $14.41 target price). Target price based on survey of 20 analysts.  Short float 8.08%. Short ratio of 1.88. Quick ratio of 1.34. P/C ratio of 4.09. Double top seems to have formed just above $11.00.

Freeport McMoRan Copper and Gold Inc (FCX): -38.03% discount to avg. analyst target price ($64.36 v $103.86 target price). Target price based on survey of 17 analysts. Trailing P/E of 8.40, forward P/E of 7.11. PEG ratio of 0.84. Debt/Equity of 61%. Institutional investors, who own 74.72%, boosted holdings by 2.81% over the last 3 months. Insiders have also been buying over the last 3 months.

Halliburton Co (HAL): -38.02% discount to avg. analyst target price ($24.22 v $39.08 target price). Target price based on survey of 28 analysts. Trailing P/E of 22.38, forward P/E of 11.61. PEG ratio of 4.00. Double top seems to have formed around $35. Quick ratio of 2.28. Dividend of 1.48%.

RR Donnelley & Sons Co (RRD): -37.72% discount to avg. analyst target price ($18.06 v $29.00 target price). Target price based on survey of 3 analysts. Quick ratio of 1.23. Dividend yield of 5.79%. EPS growth of 27.10% projected over the next year. Debt/Equity at 155%. Short ratio of 2.19. 

Gannett Co Inc (GCI): -37.49% discount to avg. analyst target price ($15.42 v $24.67 target price). Target price based on survey of 7 analysts. Short ratio of 5.23. Short float of 11.94%. Quick ratio of 1.05. EPS growth of 1.75% projected over next year. 

AES Corp (AES): -37.21% discount to avg. analyst target price ($10.36 v $16.50 target price). Target price based on survey of 6 analysts. Trailing P/E of 10.18, forward P/E of 8.80, PEG of 0.93. Quick ratio of 1.43. Debt / Equity at 330%. No dividend.

Teradyne Inc (TER): -36.89% discount to avg. analyst target price ($10.28 v $16.29 target price). Target price based on survey of 13 analysts. Short ratio of 3.74. Short float of 13.65%. Quick ratio of 2.74. Insiders, who own 0.41% of the shares, reduced positions by 28.18% over the last 3 months.

Moody's Corp (MCO): -36.55% discount to avg. analyst target price ($19.48 V $30.75 target price). Target price based on survey of 5 analysts. Dividend yield of 2.13%. Insiders, who own 0.185 of the shares, reduced holdings by 94.58% over the last 3 months. Quick ratio of 0.88. Short ratio of 6.50.

Jabil Circuit Inc (JBL): -36.44% discount to avg. analyst target price ($12.89 v $20.28 target price). Target price based on survey of 16 analysts. Dividend yield of 2.14%. Quick ratio of 0.83. Debt/Equity of 81%. EPS expected to grow by 24.06% over the next year. 

Gilead Sciences Inc (GILD): -35.62% discount to avg. analyst target price ($33.73 v $52.38 target price). Target price based on survey of 23 analysts. Trailing P/E of 11.07, forward P/E of 8.92, PEG of 0.72. Quick ratio of 2.71. EPS expected to grow by 8.10% over the next year. No dividend.

LSI Corp (LSI): -34.84% discount to avg. analyst target price ($5.05 v $7.75 target price). Target price based on survey of 13 analysts. Short ratio of 3.3, short float of 5.33%. Quick ratio of 1.67. EPS expected to grow by 15.38% over the next year.  

MEMC Electronic Materials Inc (WFR): -34.80% discount to avg. analyst target price ($10.64 v $16.32 target price). Target price based on survey of 24 analysts. Institutional investors, who own 89.50% of the stock, increased holdings by 9.48% over the last 3 months. Short ratio of 3.04, with a short float of 11.52%. Quick ratio of 2.03.

Apollo Group Inc (APOL): -34.45% discount to avg. analyst target price ($50.26 v $76.67 target price). Target price based on survey of 21 analysts. Trailing P/E of 12.59, forward P/E of 8.68, PEG of 0.77. Institutional investors, who own 82.05% of the stock, reduced holdings by 9.67% over the last 3 months. Short ratio of 3.40, with short float at 7.77%. Quick ratio of 1.25.

NVIDIA Corp (NVDA): -34.20% discount to avg. analyst target price ($11.35 v $17.25 target price). Target price based on survey of 27 analysts. Trailing P/E of 25.80, forward P/E of 10.85, PEG of 1.67. Quick ratio of 3.06. Short ratio of 1.23, with a short float of 4.46%. Virtually no debt.


Disclosure: No position.