Let's begin with one that some mistakenly thought had no future. I'm speaking about Crocs (CROX - Get Report), the worldwide maker and distributor of sassy but comfortable footwear, apparel and accessories for men, women and children.
The stock jumped over 9% after Goldman Sachs analyst Taposh Bari gave the creator of those colorful plastic shoes a "Buy" rating, saying that investors have misinterpreted the shoe brand as a fad.
"We see Crocs as a lifestyle brand with global appeal that appears both proven and sustainable," he wrote in a note to investors. The stock put in a 52-week low price of $12 on Nov. 15, but on Tuesday it leaped to $13.49 on heavier than normal volume.CROX trades at 8.65 times forward earnings, has very little debt, has over $315 million in total cash (as of Sept. 30) and a price-to-earnings to growth (PEG) ratio of only 0.90. All these factors indicate a stock that is undervalued, so no wonder the upside response was so positive. Below is what I'll call "the chart of the day." It shows the one-year price movement of CROX versus its retained earnings. By that measure this company may just end up on some big predators' takeover wish list. CROX data by YCharts
Another underrated name that received a good deal of attention Tuesday was Corning (GLW - Get Report), which pays an attractive dividend yield of around 3%. In Tuesday's trading GLW spiked almost 7% after it forecast stronger than expected retail demand for consumer electronics in the fourth quarter. Corning is the world leader in specialty glass and ceramics. Drawing on more than 160 years of materials science and process engineering knowledge, Corning creates and makes keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences. GLW also alluded to stronger demand for new televisions in the U.S.