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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

8 Rallying Mid Cap Stocks with Low P/E Ratios for Growth Investors

James Dennin, Kapitall: Mid cap stocks provide some of the excitement of growth stocks with the stability of investing in larger companies. 

One of the most neglected asset classes when it comes to portfolio allocation is mid cap stocks. They aren't usually the kind of stocks that grab headlines or yield magnificent returns. But they can be one of the best places to look for growth at a reasonable price – and to find names other investors are possibly overlooking. 

[Read more from Kapitall: 6 Foreign Stocks on US Exchanges that Bank on American Brand Names]

If most analyst projections about 2014 are to be believed, then we'll likely see much more moderate levels of growth in stock prices this year. Hardly anyone has a growth target for the S&P 500 that even comes close to approaching the 30% increase in 2013. Which means investors may be less likely to favor trendy, high-growth, high-beta stocks, in favor of more stable investments. 

And this could benefit mid cap companies even more.

Investing ideas

To build today's screen we focused on the kinds of parameters we're using, rather than the amount by which each company passed a given threshold. In other words, instead of narrowing the list by screening for companies with very high sales growth, we looked for companies that had any sales growth at all, while also meeting a number of other requirements. 

So, we began with a list of stocks with a market capitalization between $2 and $10 billion (the mid cap range) and low valuations – a forward price-to-equity (P/E) ratio below 15. In a more bearish environment, historical growth is likely to hold more weight than projected growth, so we also screened for companies with net gains in earnings per share and sales over the course of the last five years. 

Next we added another important metric for value investors: a positive dividend yield. This appeals to investors who plan on holding stocks for a long time. And to screen for momentum we also looked at stocks who are rallying above their 20-day simple moving average (MA).

Since we set very low thresholds for each metric, the screen changed slightly over the course of writing this article, mostly because one result, Lennar (LEN) is trading very close to its 20 day MA. All of the results appear below in our list, and were accurate as of 11:40 AM EST. 

Click on the interactive chart to view data over time. 

Do you see investing opportunities in these eight mid cap stocks? Use the list below to begin your own analysis. 

1 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 16,982.59 +22.02 0.13%
S&P 500 1,978.91 +0.57 0.03%
NASDAQ 4,444.9090 -4.6550 -0.10%

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