Looking for stocks deeply undervalued to analyst expectations? If so, this stock list may be of interest to you:
The names below meet all of the following criteria:
- Market cap above $300 million
- Significantly undervalued to lowest analyst target price
- Significant Earnings Per Share to Share Price Mismatch.
More information on these screens:
Lowest analyst target price
The target price is a price level set by analysts that, based on their data and estimates, represents their predictions for that company in the upcoming year. And because analysts often have different opinions, and tend to be overly optimistic, we use the lowest analyst target price.
When a company’s current market price is deeply lagging to the target price, it may signal that the company has more value to price in (the stock price may rise).
Significantly Undervalued to EPS
An EPS/Price Mismatch implies that the Earnings Per Share is significantly different from market price. When the EPS is higher than Price, it could mean the stock is undervalued.
It’s based on the assumption that P/E is equal to a constant k, increases in EPS estimates should be matched by proportionate increases in price. When they don’t match up, a mispricing may have occurred. This may be an opportunity to buy in before the market corrects itself.
Business Section: Investing Ideas
Here’s the result of our screen. Look at the data below; Could a mispricing lead to positive upside for these names?
Use this list as a starting point for your own analysis.
Interactive Chart: Use the Compar-O-Matic to compare analyst ratings for the stocks mentioned below:
1. Abiomed Inc. (ABMD, Earnings, Analysts, Financials): Engages in the research, development, and sale of medical devices that provide circulatory support to acute heart failure patients across the continuum of care in heart recovery. Market cap at $801.27M, most recent closing price at $20.27. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $27.00. This implies a potential upside of 16.38% from current levels around $23.20. Over the last 30 days, analyst projected EPS has increased 8.33% (from $0.24 to $0.26), while the price has decreased 2.19% (from $23.72 to $23.20).
2. On Assignment Inc. (ASGN, Earnings, Analysts, Financials): Provides flexible and permanent staffing solutions in the United States, Europe, Canada, Australia, New Zealand, and Bermuda. Market cap at $823.05M, most recent closing price at $15.84. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $19.00. This implies a potential upside of 23.70% from current levels around $15.36. Over the last 30 days, analyst projected EPS has increased 7.22% (from $0.97 to $1.04), while the price has decreased 9.81% (from $17.03 to $15.36).
3. US Airways Group, Inc. (LCC, Earnings, Analysts, Financials): Provides air transportation for passengers and cargo. Market cap at $1.64B, most recent closing price at $10.12. Of the 12 analysts that have set a target price on the stock, the lowest price target stands at $14.00. This implies a potential upside of 28.56% from current levels around $10.89. Over the last 30 days, analyst projected EPS has increased 5.08% (from $2.95 to $3.10), while the price has decreased 19.15% (from $13.47 to $10.89).
4. Liquidity Services, Inc. (LQDT, Earnings, Analysts, Financials): Operates an online auction marketplace for wholesale, surplus, and salvage assets primarily in the U. Market cap at $1.38B, most recent closing price at $44.42. Of the 9 analysts that have set a target price on the stock, the lowest price target stands at $52.50. This implies a potential upside of 29.73% from current levels around $40.47. Over the last 30 days, analyst projected EPS has increased 10.84% (from $1.66 to $1.84), while the price has decreased 3.64% (from $42.00 to $40.47).
5. Saia, Inc. (SAIA, Earnings, Analysts, Financials): Provides transportation and supply chain solutions primarily to the retail, chemical, and manufacturing industries in the United States. Market cap at $361.38M, most recent closing price at $22.53. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $27.00. This implies a potential upside of 17.09% from current levels around $23.06. Over the last 30 days, analyst projected EPS has increased 21.74% (from $1.61 to $1.96), while the price has increased 7.26% (from $21.50 to $23.06).
6. TIM Participacoes S.A. (TSU, Earnings, Analysts, Financials): Provides mobile telecommunications services through global system mobile (GSM) technology to business and individual customers in Brazil. Market cap at $5.39B, most recent closing price at $21.77. Of the 11 analysts that have set a target price on the stock, the lowest price target stands at $28.00. This implies a potential upside of 26.98% from current levels around $22.05. Over the last 30 days, analyst projected EPS has increased 9.04% (from $1.77 to $1.93), while the price has decreased 20.17% (from $27.62 to $22.05).
Written by Rebecca Lipman. EPS and target price data sourced from Yahoo Finance. All other data sourced from Finviz.
Use Kapitall’s Tools: Looking for ways to analyze this list?
Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall’s tab navigation to browse through the data…
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
- Compare analyst ratings for the companies mentioned
- Compare analyst ratings to annual returns for stocks mentioned
- Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
- Abiomed Inc. (ABMD, Chart, Download SEC Filings)
- On Assignment Inc. (ASGN, Chart, Download SEC Filings)
- US Airways Group, Inc. (LCC, Chart, Download SEC Filings)
- Liquidity Services, Inc. (LQDT, Chart, Download SEC Filings)
- Saia, Inc. (SAIA, Chart, Download SEC Filings)
- TIM Participacoes S.A. (TSU, Chart, Download SEC Filings)
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