This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

4 Upgraded, Undervalued Stocks

Stocks in this article: CDNS EXXI AAWW MYGN

NEW YORK ( TheStreet) -- The following stocks received upgrades to buy from TheStreet Ratings on Friday and are undervalued compared with their peers: Cadence Design Systems (CDNS), Energy XXI (EXXI), Atlas Air Worldwide (AAWW) and Myriad Genetics (MYGN).

Cadence Design Systems

The electronic design automation software and hardware company on Wednesday reported fourth-quarter earnings of $11 million, or 4 cents a share. In the previous fourth quarter, Cadence Design posted a loss of $37 million, or 14 cents a share.

The stock hit a 52-week high of $11.84 on Thursday. The stock's 52-week low of $8.09 was set on Aug. 19. The stock has risen 12.02% year to date.

"Management took a bold stance during the earnings call when it outlined plans to achieve a mid-20s operating margin in 2013," D.A. Davidson analysts wrote in a report Thursday. "While margins should benefit from solid revenue growth and the leverage already imbedded in the model, if revenue growth wanes, management appears willing to implement meaningful cost reductions to meet this aggressive goal. This achievement would bring CDNS' operating margins in line with industry-leader Synopsys (SNPS* - BUY - $29.49) and ultimately drive an EPS run rate in excess of $1.00 per year exiting 2013."

Six of the eight analysts who cover Cadence consider it a buy. Two analysts rated it a hold.

Cadence Design's estimated price-to-earnings ratio for next year is 13.55. The average for the software industry is 33.34. Rovi (ROVI) has a low forward P/E ratio of 12.74.

TheStreet Ratings gives Cadence a B- grade with $14.18 price target. The stock closed Thursday at $11.64.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs