5 Undervalued Stocks for 2012

NEW YORK ( TheStreet) -- The goal of a value investor is to identify stocks trading below their calculated intrinsic fair value and purchasing them with an adequate margin of safety. Astute investors can examine these five stocks and use the information as a basis for due diligence. These stocks have their P/E ratios in the range of 5 to 12 apart from Calgon which is flirting with its yearly lows.

A consensus forecast of analysts polled by Bloomberg sees upside opportunity of 31% to 58% for these five stocks, with buy and hold guidance of 75% and 20% on average, respectively.

The five selected stocks are listed in ascending order of upside potential.
5. Agilent Technologies ( A) is a premier measurement company and technology leader in chemical analysis, life sciences, electronics and communications serving customers in more than 100 countries.

For fiscal 2011, Agilent reported net revenue of $6.6 billion, up 22% compared to the prior fiscal. Net income rose 47.9% to $1,012 million, while total orders amounted to $6,769 million, an increase of 18% from the earlier year.

The company estimates revenue of $1.65 billion to $1.67 billion for the 2012 first quarter with non-GAAP earnings of 67 cents to 69 cents per share (EPS). For fiscal 2012, revenue guidance is between $6.85 billion to $7.15 billion and earnings per share (EPS) in the range of $3 to $3.35.

Last month, Agilent completed the acquisition of BioSystem Development -- a privately held company engaged in the development and manufacture of the AssayMAP Microchromatography platform -- and signed a definitive acquisition agreement with Accelicon Technologies.

Of the 17 analysts covering the stock, 94% recommend a buy and rest suggest a hold. The stock's average 12-month price target is $47.6, or 31.5% above the current price, according to a Bloomberg consensus.

Agilent is currently trading at a P/E ratio of 11.8.

4. Calgon Carbon ( CCC) operates in the activated carbon industry through unmatched innovations in the purification, separation and concentration of liquids, gases and other media. The company currently offers carbon technologies used in over 700 distinct market applications.

For the 2011 third quarter, Calgon reported net sales of $143.6 million, up 15.5% from the same quarter last year. Net income was up 45% at $14.5 million, while income from operations increased 24.7%.

Last month, CCC announced that it will undertake management restructuring so as to capitalize on the significant growth opportunities anticipated over the next five years.

The stocks is currently trading at 17% premium to its 52-week low.

Of the 10 analysts covering the stock, 60% recommend a buy and 30% suggest a hold. The stock's average 12-month price target is $20.08, or 32% above the current price, according to a Bloomberg consensus.

3. Cliffs Natural Resources ( CLF) is an international mining and natural resources company. A member of the S&P 500 Index, Cliffs is a major producer of iron ore and high- and low-volatile metallurgical coal.

For the 2011 third quarter, the company recorded consolidated revenue of $2.1 billion, up 59% from $1.3 billion in the same quarter last year. Net income attributable to shareholders nearly doubled to a quarterly record of $590 million, or 47 cents per diluted share.

Last month, Cliffs paid a quarterly cash dividend of 28 cents per share, vs. 14 cents paid for the same period in 2010.

The company expects fourth quarter 2011 revenue between $18 million to $21 million and pegs full year revenue in the $75 million to $78 million range. EPS is expected up to 3 cents per share.

Of the 20 analysts covering the stock, 80% recommend a buy and 20% suggest a hold. The stock's average 12-month price target is $104.43, or 56.3% above the current price, according to a Bloomberg consensus.

Cliffs is currently trading at a P/E ratio of 5.3.

2. Dana Holding ( DAN) is a supplier of axles; drive shafts; off-highway transmissions; sealing and thermal-management products; and genuine service parts. The company's customer base includes major vehicle manufacturers in the global automotive, commercial vehicle, and off-highway markets. It operates more than 95 major facilities in 26 countries, supporting end customers in more than 125 countries.

For the 2011 third quarter, the company reported sales of $2.0 billion, up 30% over the same quarter 2010. Dana achieved an adjusted EBITDA margin of 10.2%, compared to 9.8% in the prior-year period. Diluted adjusted earnings per share in the quarter were 45 cents against 28 cents in the earlier-year period.

For fiscal 2011, the company expects adjusted EBITDA of approximately $780 million against the previous guidance of $765 million to $785 million; diluted adjusted earnings per share are expected between $1.65 and $1.70, vs. the earlier view of $1.60 to $1.70 per diluted adjusted share.

Of the 13 analysts covering the stock, 85% recommend a buy and 15% suggest a hold. The stock's average 12-month price target is $19.67, or 56.7% above the current price, according to a Bloomberg consensus.

Dana is currently trading at a P/E ratio of 13.6.

1. Monster Worldwide ( MWW), the parent company of Monster, is a premier global online employment solution. Present in key markets in North America, Europe, and Asia, Monster connects employers with job seekers at all levels and by providing personalized career advice globally.

Total revenue for the third quarter of fiscal year 2011 was $259 million, up 13% from the same period last year. Bookings of $264 million increased 20% year-over-year and non-GAAP operating margin increased to 10% compared with 2% in the same period last year.

For the 2011 fourth quarter, it expects revenue increase of 3% to 7% and earnings per share in the range of 11 cents to 15 cents. For fiscal 2011, revenue growth is expected to increase by 17% to 18% and EPS is seen in the range of 38 cents to 42 cents.

In Nov.2011, MWW unveiled the first-ever Veterans Talent Index (VTI), an innovative new tool to help connect veterans and employers more effectively, using bi-annual data to provide a regular snapshot of the veteran hiring landscape.

Of the 14 analysts covering the stock, 57% recommend a buy and 29% suggest a hold. The stock's average 12-month price target is $13.09, or 58.7% above the current price, according to a Bloomberg consensus.

MWW is currently trading at a P/E ratio of 14.2.

>>To see these stocks in action, visit the 5 Undervalued Stocks for 2012 portfolio on Stockpickr.