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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

5 Undervalued Stocks Trading Below Their Lowest Target Price

Besides looking for stocks that don't cost an arm and a leg, savvy investors use many tricks to find bargains among the market's many offerings. One way to do so is to consider a company's target price as set by independent analysts.

[Read more from Kapitall:  Consumer Prices Rose But Shoppers Always Stop At The Drugstore]

To generate this list we began by searching for stocks that are trading at significant discounts to their fair value based on analyst target price, with the assumption that they will move up to their fair value in the near future. 

We only included stocks with five or more analyst ratings. And because analyst prices are notoriously inflated, we compared current price to the lowest target.

Besides screening for rock bottom prices, we also wanted to find signs of undervaluation, so we considered the Price to Earnings (P/E) data among our results.

We limited our remaining universe to those companies with a Price/Earnings to Growth – PEG – ratio below 1, a common indication of undervaluation based on earnings performance. 

PEG = P/E / Annual EPS Growth

With seven stocks remaining in our results, we looked closer at the difference between their P/E and Forward P/E ratios. Five of the seven companies had Forward P/E ratios below their P/E ratio, which would normally suggest that earnings are expected to grow in the near future.

So we were left with five stocks trading below their expected price targets, with attractive price to earnings figures.

The List

Analyze These Ideas:   Compare analyst ratings to annual returns  for stocks mentioned.

Click on the image below to see analyst ratings over time. Average analyst ratings sourced from Zacks Investment Research.

Do you think these stocks will rise to their target prices? Use the list below as a starting point for your own analysis.

1. CAI International Inc. ( CAP ): Engages in the intermodal marine cargo container leasing business worldwide. Market cap at $510.38M, most recent closing price at $23.11.

Of the 8 analysts that have set a target price on the stock, the lowest price target stands at $23.7. This implies a potential upside of 26.59% from current levels around $30.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

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