These 5 Stocks Under $5 Appear Undervalued By EPS Trends

Interested in finding undervalued stocks in a low price range? For ideas on where to look, we ran a screen you might be interested in.

We screened for stocks under $5 that appear undervalued relative to EPS trends. Based on the theoretical assumption that if P/E is equal to a constant K, growth in EPS estimates should be matched by proportionate growth in price. When they don’t match up, a mispricing may have occurred. We screened for those exhibiting this mismatch between changes in EPS estimate and price.

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Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

 

1. Portugal Telecom SGPS SA ( PT): Provides telecommunications services in Portugal, Brazil, and Africa. Market cap at $4.24B, most recent closing price at $4.73. The EPS estimate for the company’s current year increased from 0.52 to 0.61 over the last 30 days, an increase of 17.31%. This increase came during a time when the stock price changed by -4.19% (from 4.77 to 4.57 over the last 30 days).

2. First Bancorp ( FBP): Operates as the holding company for FirstBank Puerto Rico that provides a range of financial services and products to retail, commercial, and institutional clients in Puerto Rico, the United States, and the British Virgin Islands. Market cap at $931.93M, most recent closing price at $4.52. The EPS estimate for the company’s current year increased from 0.15 to 0.18 over the last 30 days, an increase of 20.%. This increase came during a time when the stock price changed by 4.15% (from 4.1 to 4.27 over the last 30 days).

3. Nevsun Resources Ltd. ( NSU): A natural resource company, together with its subsidiaries, engages in the acquisition, exploration, development, and production of mineral properties. Market cap at $809.48M, most recent closing price at $4.07. The EPS estimate for the company’s current year increased from 0.67 to 0.71 over the last 30 days, an increase of 5.97%. This increase came during a time when the stock price changed by -12.13% (from 4.7 to 4.13 over the last 30 days).

4. Nomura Holdings, Inc. ( NMR): Provides financial services in Japan and internationally. Market cap at $15.79B, most recent closing price at $4.13. The EPS estimate for the company’s current year increased from 0.11 to 0.15 over the last 30 days, an increase of 36.36%. This increase came during a time when the stock price changed by 19.55% (from 3.58 to 4.28 over the last 30 days).

5. Thompson Creek Metals Company Inc. ( TC): Engages in mining, milling, processing, and marketing molybdenum products in the United States and Canada. Market cap at $533.19M, most recent closing price at $3.16. The EPS estimate for the company’s current year increased from 0.16 to 0.18 over the last 30 days, an increase of 12.5%. This increase came during a time when the stock price changed by 1.69% (from 2.96 to 3.01 over the last 30 days).

 

 

Analyze These Ideas with KapitallAccess a performance overview for all stocks in the list

 

Written by Sabina Bhatia

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