Investors shy away from bargain stocks, thinking that, like most things, cheap translates to low-quality. However, some bargain stocks offer value too. According to Learning Markets, the term "bargain stock" implies that a stock is undervalued or is worth less than it should be. Here are some undervalued stocks worthy of investors' attention according to global market analysts:
3D Systems Corp.
3D Systems Corp. (NYSE: DDD) is a leader in 3D printing industry. The company provides the most advanced and comprehensive 3D digital design and fabrication solutions available today, including 3D printers, print materials, and cloud-sourced custom parts. 3D Systems' leading service for the medical field includes end-to-end simulation, training and planning, and the printing of surgical instruments and devices for specialized surgery and patient-specific medical and dental devices.
DDD has a $1.4 billion market cap, trading at just 1 times sales. If DDD returned to even just 50 percent of its December 2013 high, that would mean 295 percent increase in profits.
According to Market Oracle UK, while the company has gone on an acquisition binge that has hurt short-term profits, 3D Systems has a huge head start on the lucrative federal market that most investors are not aware of yet. The company's 3D design-to-print goods and services are being offered through the General Services Administration, a program that distributes $50 billion worth of business a year.
The company's products and services disrupt traditional methods and deliver improved results. Its powerful ecosystem transforms entire industries by empowering professionals and consumers everywhere to bring their ideas to life using its vast material selection, including plastics, metals, ceramics and edibles.
ePlus is a Virginia-based American IT company that deals with financing and selling assets. It helps organizations optimize their IT infrastructure and supply chain processes by delivering complex information technology solutions. These solutions include managed and professional services and products from top manufacturers, flexible financing, and proprietary software. It serves customers from commercial, state, municipal, and educational institutions nationally.
The company's technology department provides IT services to more than nine global IT companies, including Cisco Systems, Hewlett Packard, Apple Inc., Dell and Microsoft. The financing division is engaged in providing equipment, software and relevant solutions to government and government-oriented entities. According to Forbes, ePlus, with a $580 million market cap, gets strong interest with its combination of momentum and value-a 0.51 price per sales ratio and 88 twelve-month relative strength.
5BARz International (OTCQB: BARZ) is an American tech firm that solves cellular network problems. It has developed a new lifestyle product that incorporates multiple patented technologies into a single plug-and-play box. The single-piece 5BARz network extender unit delivers high quality signals for voice, data, and video to your handset, tablet or other connected device just by plugging it in. The company sees a huge $27 billion potential market based solely on the three percent global churn rate, or number of mobile subscribers leaving their networks due to poor signal quality, dropped calls and/or weak data throughput.
MicroCap Daily reported that 5BARz International is currently trading at a $34 million market valuation. Analysts view this as an exciting story developing in small caps. 5BARz network extender, the company's valuable patented technology, is making waves in India. The company recently signed an investment banking agreement with a leading firm in India aimed to raise $20 million.
Ellie Mae, Inc.
Ellie Mae, a $862 million technology company, provides software solutions for the residential mortgage industry. Ellie Mae Network, one of the largest electronic mortgage origination networks in the United States, connects mortgage originators, bankers, brokers and service providers, helping automate much of the origination and funding of residential mortgages.
The company's solutions include electronic document management, customized partner websites, compliance management, income verification, and a number of other customizable add-on solutions.
According to Money and Markets, the company estimates that it is only servicing about 2.1 percent of a total $2.5 billion addressable market, indicating a huge opportunity. Its flagship Encompass platform was the leader in the loan origination software sector, accounting for 40 percent of the market share by volume. While mortgage volume has been declining since 2009, Ellie Mae was able to drive revenue growth of more than 47 percent as a result of multiple growth drivers targeted at over 7,500 mid-sized mortgage-generating units and nearly 110,000 industry professionals.
Orexigen Therapeutics, Inc.
Orexigen Therapeutics is a biopharmaceutical company focused on the treatment of obesity. Its group of obesity medications is currently pushing through trials, and its recently approved Contrave drug gives it a huge upside potential. The increasing number of obese people in the United States and FDA's sluggish obesity drug trials and approvals mean that there will be a 100 percent upside if Orexigen's medicine is approved.
In the long run, the target could be even higher if its line of obesity medication gets widespread acceptance According to NASDAQ, Orexigen has a market cap of $630 million. In September 2015, it was selected as a top biotech pick by Credit Suisse and was given an "outperform" rating and price target of $10 per share. Most recently, RBC Capital markets also gave Orexigen the same "outperform" rating and $10 target.