Deer Consumer Products
Deer Consumer Products (DEER) makes kitchen appliances for global brands like Stanley Black & Decker (SWK - Get Report) and is now ramping up domestic sales by steadily building its brand among Chinese consumers.I've written about Deer several times before, always noting that the company is a solid grower and nicely profitable. Shares have risen more than 50% since I last visited this stock in August, yet they still look cheap. Deer announced impressive third-quarter numbers last week, highlighted by a 108% jump in sales and a 125% jump in net income. Thanks to recent contract wins, Deer expects EPS to grow more than 30% in 2011 to around $1.10 to $1.20. Shares trade for around 10 times that view. This remains, in my view, as the best play on the rising Chinese middle class. Action to Take China XD Plastics and China Security & Surveillance are extremely cheap because of dilution concerns that should abate. Deer, while not quite as cheap, still looks very undervalued in the context of long-term growth. All three of these stocks look like long-term winners, and should garner more investor appreciation in 2011. This article originally appeared on StreetAuthority. At the time of publication, Sterman owned no positions in the stocks mentioned.