share_log

3 Potentially Undervalued Stocks

gurufocus ·  Feb 12, 2020 00:00

The following stocks appear to be undervalued as of Feb. 11 since they have a price-earnings ratio below 20 and a price-earnings to growth ratio of less than 1.

Wall Street sell-side analysts have also issued positive recommendation ratings for these companies.

BYD Electronic

The first company that meets these criteria is BYD Electronic (International) Co. Ltd. (BYDIF).

Shares of the Chinese manufacturer and seller of mobile handset components and modules closed at $1.95 on Tuesday for a market capitalization of $4.46 billion.

The price-earnings ratio is 17.22 versus the industry median of 19.22 and the PEG ratio is 0.54 versus the industry median of 1.6.

20200213035644173d235tpjzelyj3uv

The stock has climbed 95% over the past five years through Feb. 11. Nevertheless, the stock is slightly above the Peter Lynch earnings line.

20200213035645740d235np26jrnq2hn

BYD Electronic has received a high GuruFocus rating of 8 out of 10 for both its financial strength and for its profitability.BYDIF 30-Year Financial DataThe intrinsic value of BYDIFPeter Lynch Chart of BYDIF

Wall Street recommends an overweight rating for the stock, which means it is expected to outperform, and has also established an average target price of 13.16 yuan ($1.9).

Stamps.com

The second company that meets the above-listed criteria is Stamps.com Inc. (NASDAQ:STMP).

Shares of the El Segundo, California-based provider of internet-based mailing and shipping services to U.S. and European clients traded at a price of $83.80 per unit on Tuesday for a market capitalization of $1.45 billion.

The price-earnings ratio is 18.96 versus the industry median of 25.99 and the PEG ratio is 0.29 versus the industry median of 2.15.

The stock has gained 47.7% over the past five years through Feb. 11. Regardless, it is still trading close to the Peter Lynch earnings line.

20200213035657900d235w1l3k9503c3

GuruFocus assigned the company a high financial strength rating of 8 out of 10 and a very high profitability rating of 9 out of 10.

Wall Street issued an overweight recommendation rating for the stock with an average target price of $94 per share.

Duluth Holdings

The third company that meets the criteria is Duluth Holdings Inc. (NASDAQ:DLTH).

Shares of the Mount Horeb, Wisconsin-based apparel retailer closed at $8.35 on Tuesday for a market capitalization of $274.3 million.

The price-earnings ratio is 16.94 versus the industry median of 17.06 and the PEG ratio is 0.84 versus the industry median of 1.92.

The stock has fallen nearly 41% over the past five years through Feb. 11. Nevertheless, the share price is still above the Peter Lynch earnings line.

20200213035659870d235kpz4s7os25n

GuruFocus has assigned Duluth Holdings a moderate rating of 4 out of 10 for its financial strength and a very positive rating of 7 out of 10 for its profitability.

Wall Street sell-side analysts recommend a hold rating for the stock and have set an average target price of $11.67 per share.

Disclosure: I have no positions in any securities mentioned.

Read more here:Why Polyus PJSC Can Outperform3 Low Price-Book Stocks for the Value InvestorA Trio of High Earnings Return Stocks to Consider

Not a Premium Member of GuruFocus? Sign up for afree 7-day trial here. About the author:

Alberto Abaterusso If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
    Write a comment