All too often, healthy companies are unfairly branded as hopeless. A bit of a shaky run, a wave of negative commentary, and even intrinsically strong stocks can drown in a morass of bad press.

But typically, there's a story behind the headlines. Some of these stocks, so easily hated by commentators and overwrought investors, have the chance to bounce back -- if not right away, at least in the near future. Legendary investor Warren Buffett knows this and has, throughout his career, found companies to buy when others thought they weren't worth it -- and made a killing.

We look at three undervalued stocks that have an entirely different tale to tell -- and explain why you can't count them out of the game.

Image placeholder title

PPC

data by

YCharts

1. Pilgrim's Pride Corp (PPC) - Get Report

Pilgrim's Pride is the largest chicken producer in the United States. People are eating more chicken than ever, and yet this stock is pegged to be a no-show -- why?

Over the last six months, the stock has witnessed a downswing of 23% and the street is still baying for more blood. The situation has a lot to do with a series of glaring management misjudgments that can be turned around and aren't fatal.

A $1.5 billion special dividend -- roughly three times the size of the company's cash pile -- funded by borrowings irked shareholders. Further, the move to acquire the loss-making Mexico unit of Tyson Foods for $380 million was another ill-advised endeavor. If all that weren't enough, executing a $150 million share buyback program indicated extended debt borrowings.

However, after the steep drop in price, the company is still trading at a premium enterprise value/EBITDA (trailing twelve months) of four times compared to peers like Sanderson Farms (available at 2.88).

So, if you drill deeper, the picture looks far better for Pilgrim's Pride. A cash generating business, low operational costs leading to better gross and net margins, and acquisitions falling into place should all propel Pilgrim's Pride forward, overcoming its temporary adversity

And at less than 10 times forward earnings, the stock will attract value-hunters, promising robust growth-potential.

Image placeholder title

CALM

data by

YCharts

2. Cal-Maine Foods (CALM) - Get Report

Cal-Maine Foods, a producer and distributor of fresh shell eggs, is another underdog story.

The stock has performed well for the past 52 weeks and its year to date gains have hit 47%, compelling some analysts to suggest that Cal-Maine's best days are well behind it. I disagree.

This year witnessed a spate of good times for the company; with rising shell egg prices, under the backdrop of the avian flu outbreak, Cal-Maine posted a sharp rise in revenue and profits.

Additionally, the company's increasing share of specialty egg sales should drive growth going forward. Lower raw material costs could also drive an earnings boost.

With a forward annual dividend yield of 7.3% (thanks to the generous November dividend payout), income investors are also well taken care of. If you're thinking this is too much of a perfect environment, rest easy, the company generates sufficient cash to cover its dividends several times over.

All that said, we can't see anything that makes Cal-Maine the market pariah it's made out to be.

Image placeholder title

MYGN

data by

YCharts

3. Myriad Genetics (MYGN) - Get Report

Molecular diagnostic firm Myriad Genetics has gained a good 12% in the last one month. First-quarter earnings have been healthy with an adjusted diluted earnings-per-share of $0.41, beating estimates of 35 cents a share by 17%. It's also maintained a fiscal year 2016 revenue guidance at $750 million-to-$770 million and GAAP diluted earnings-per-share at $1.60-to-$1.65.

However, earnings-per-share estimates at $0.42 for the next two quarters suggest sequential growth may slow down. At nearly 23 times forward earnings, the stock appears fairly valued for now.

While analysts haven't been very optimistic about Myriad, some commentators continue to believe that this biotech company's five-year turnaround plan (which includes retaining its existing business while expanding into new products and territories), is promising.

If Myriad does achieve its stated goal for revenue growth (exceeding 10% year over year and an increase in operating margins of 30%), it could address the challenges surrounding it, burying the wave of issues that arose from a court ruling that recommended the cancellation of patents for "naturally occurring human hormones."

Myriad is definitely on course for a strong turnaround. And if you're looking for more "underdogs" that Warren Buffett would love, click here now for a free report.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.