When you consider that PRU is selling for less than book value and that its last quarter revenue growth was a stellar year-over-year 293% increase, the following one-year price chart looks very promising.
PRU data by
Another sector that is looking undervalued is technology. When an investor looks at legacy companies like Microsoft (MSFT) with its nearly 3.3% dividend and trading at just nine times forward earnings, one could envision a one-year total return of 25 to 30%.
MSFT will report its current quarterly earnings on April 18, less than a month from now. Did you know the analysts' consensus average earnings estimate is anticipating an EPS increase of around 28%? The same group of around 30 analysts expect sales growth and revenue to increase by over 19%.
As the one-year chart suggests, there is plenty of upside potential for Microsoft's share price. If it was to exceed the analysts' estimates then we may see a prettier picture than the one below.
MSFT data by
This major player in the semiconductor industry had, as of the end of 2012, $2.58 billion in total cash and operating cash flow (TTM) of over $858 billion. KLAC management guided conservatively for 2013 and if it can surprise to the upside on revenues and EPS (as it did three out of four quarters in 2012) the stock may surge. This would be accelerated by the potential of a short-covering squeeze.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV