Moreover, management is shifting focus from generating a huge amount of mediocre content to a smaller amount of more compelling content. As a result, traffic has begun to re-build, and management projects decent sales growth for 2012.

It's a bit too soon to call this a full-fledged turnaround, but with shares trading far from the IPO price, it's surely worth further research.

Vanguard Health Systems

Vanguard Health Systems ( VHS), an operator of 26 acute health care hospitals and three health care plans, would appear to be the victim of the current healthcare reform. Shares are off sharply since last summer, and analysts have been steadily lowering their earnings forecasts in light of industry cost pressures.

But some think that the changing health care landscape will be a clear positive for Vanguard Health. First, the mandate that requires all citizens to have health insurance is expected to boost traffic as formerly un-insured patients more readily seek medical attention. Second, the number of unpaid hospital bills should radically shrink as patients go from uninsured to insured.

Merrill Lynch, with a $15 price target, notes that Vanguard "has been able to operate at decent margins in markets with high uninsured and Medicaid populations" and thinks results are about to get even better. It sees EPS rising from 78 cents in fiscal (June) 2012 to $1.01 in fiscal 2013 to $1.68 in fiscal 2014. For a stock that has fallen more than 40% in the last six months to a recent $10.30, that kind of profit growth could attract a fresh base of investors.

Zipcar

Car-sharing service Zipcar ( ZIP) has delivered solid -- if unspectacular -- quarterly results since going public last spring. Yet the key reason behind a slumping share price is a steady selling pressure from the company's original backers, some of whom have been unloading large blocks of stock in recent months. Until that process is complete, shares may remain under duress.

Over the long-haul, however, this appears to be a solid growth platform. Sales are growing at about a 20% annual pace, thanks to deeper penetration of existing markets and steady expansion into new U.S. and European markets.

To see these stocks in action, visit the 2011 IPOs That Look Undervalued portfolio.

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At the time of publication, author had no positions in stocks mentioned.

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