This Day On The Street
Continue to site
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

Could a Nasdaq correction benefit these 8 value stocks?

​James Dennin, Kapitall: Value investors pick up shares during market corrections. Could Nasdaq's performance benefit these 9 value stocks?

Everyone's talking about the Nasdaq, which neared correction territory yesterday as it dipped below 4000 during midday trading.

A correction is when a stock, index, bond, or commodity declines 10% or more, and the most apparent catalyst is high valuations. In other words, they happen when investors stop buying stocks because the prices are too high. 

This is the value investor's time to shine.

Read more from Kapitall about top how to pick outperforming stocks from a value perspective. 

A market correction often creates cheaper prices throughout the stock market, regardless of individual companies' performance. So it's easier to find stocks whose fundamentals will support a higher stock price. 

Analysts have been expecting a correction all year. Markets usually adjust briefly any time the S&P 500 has a year where it returns 20% or more, and 2013's performance yielded over 30%. 

For all you value investors out there, we decided to run a screen on the Nasdaq for likely rebound candidates. To do that we started with companies that were still up for the month. This datum suggests that they were among the least likely to be affected by the Nasdaq's downturn. 

To narrow the screen further, we plugged that list of 200 stocks into a screener to see which ones were trading at least 15% below their Graham Number. This means that the stock is trading at a price which doesn't match the value of the company's assets. We limited the screen by removing financial stocks, which were already undervalued, and stocks with a market cap below $200 million.

That left us with 9 companies on our list. 

Click on the interactive chart to view data over time. 

 Will a Nasdaq correction benefit these 9 value stocks? Use the list below to begin your analysis. 

1. Handy & Harman Ltd. ( HNH): Engages in precious metals, tubing, and engineered materials businesses in the United States and internationally. Market cap at $280.50M, most recent closing price at $22.07.

Diluted TTM earnings per share at 3.17, and a MRQ book value per share value at 10.31, implies a Graham Number fair value = sqrt(22.5*3.17*10.31) = $27.12.

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 -2.67%
FB $104.07 -5.81%
GOOG $683.57 -3.45%
TSLA $162.60 -7.26%
YHOO $27.97 -4.05%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs