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
TheStreet Open House

7 Undervalued IPO Stocks That Could Rebound in 2012

Moreover, management is shifting focus from generating a huge amount of mediocre content to a smaller amount of more compelling content. As a result, traffic has begun to re-build, and management projects decent sales growth for 2012.

It's a bit too soon to call this a full-fledged turnaround, but with shares trading far from the IPO price, it's surely worth further research.

Vanguard Health Systems

Vanguard Health Systems (VHS), an operator of 26 acute health care hospitals and three health care plans, would appear to be the victim of the current healthcare reform. Shares are off sharply since last summer, and analysts have been steadily lowering their earnings forecasts in light of industry cost pressures.

But some think that the changing health care landscape will be a clear positive for Vanguard Health. First, the mandate that requires all citizens to have health insurance is expected to boost traffic as formerly un-insured patients more readily seek medical attention. Second, the number of unpaid hospital bills should radically shrink as patients go from uninsured to insured.

Merrill Lynch, with a $15 price target, notes that Vanguard "has been able to operate at decent margins in markets with high uninsured and Medicaid populations" and thinks results are about to get even better. It sees EPS rising from 78 cents in fiscal (June) 2012 to $1.01 in fiscal 2013 to $1.68 in fiscal 2014. For a stock that has fallen more than 40% in the last six months to a recent $10.30, that kind of profit growth could attract a fresh base of investors.

Zipcar

Car-sharing service Zipcar (ZIP) has delivered solid -- if unspectacular -- quarterly results since going public last spring. Yet the key reason behind a slumping share price is a steady selling pressure from the company's original backers, some of whom have been unloading large blocks of stock in recent months. Until that process is complete, shares may remain under duress.

Over the long-haul, however, this appears to be a solid growth platform. Sales are growing at about a 20% annual pace, thanks to deeper penetration of existing markets and steady expansion into new U.S. and European markets.

To see these stocks in action, visit the 2011 IPOs That Look Undervalued portfolio.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

Stockpickr is a wholly owned subsidiary of TheStreet.com.

At the time of publication, author had no positions in stocks mentioned.

3 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!
DOW 17,154.00 +122.86 0.72%
S&P 500 2,001.93 +17.80 0.90%
NASDAQ 4,553.8510 +34.9490 0.77%

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