NEW YORK ( TheStreet) -- Discount retailers have not participated in the Santa Claus rally. One of the nine stocks I am profiling today set its 2012 high on March 27, six topped out between June 14 and Sept. 21, another peaked on Oct. 16, and the ninth set its high recently on Dec. 5.All nine discount retailers are rated a buy according to www.ValuEngine.com, with four undervalued by double-digit percentages. Six are higher by double-digit percentages over the last 12 months and only one is lower by more than 20%. Market volatility is projected to decline over the next 12 months with projected gains between 6.5% and 11.1%, all within the 5% to 12% range of stocks rated "four-engine" or buy according to ValuEngine. The trailing 12 month price-to-earnings ratios are reasonable for eight of nine P/E between 10.5 and 17.9 with the ninth having an elevated P/E of 23.8.
Discount Retailers, From Leaders to Laggards
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