The following stocks seem undervalued by the market, as their price-earnings ratios are less than 20 and their price-earnings to growth (PEG) ratios are below 1 as of July 21. Furthermore, these stocks hold positive recommendation ratings on Wall Street.
MarineMax Inc
The first company that meets these criteria is MarineMax Inc (HZO, Financial), a Clearwater, Florida-based retailer of recreational boats and yachts in the U.S.
Shares were trading at a price of $26.26 each at close on Tuesday for a market capitalization of $563.93 million.
The price-earnings ratio of 14.67 is more compelling than the industry median of 18.97, and the PEG ratio stands at 0.5 compared to the industry median of 1.76.
The stock price has increased by 79.5% over the past year, determining a 52-week range of $7.25 to $26.27.
GuruFocus assigned a positive rating of 5 out of 10 for the company’s financial strength and a very good rating of 7 out of 10 for its profitability.
Currently, Wall Street sell-side analysts recommend an overweight rating for the stock with an average target price of $24.70 per share.
Pembina Pipeline Corp
The second company that makes the cut is Pembina Pipeline Corp (PBA, Financial), a Canadian oil and gas midstream operator in North America.
Shares were trading at $25.20 per unit at close on Tuesday for a market capitalization of $13.78 billion.
The stock has a price-earnings ratio of 13.03, which is slightly less compelling than the industry median of 9.15. The PEG ratio of 0.96 is almost on par with the industry median of 0.93.
The stock price has decreased 33.5% over the past year, determining a 52-week range of $10.58 to $40.65.
GuruFocus assigned the company a moderate rating of 4 out of 10 for its financial strength and a very good rating of 7 out of 10 for its profitability.
Currently, Wall Street sell-side analysts recommend buying the stock and have established an average target price of approximately $28.72 per share.
Align Technology Inc
The third company that qualifies is Align Technology Inc (ALGN, Financial), a San Jose, California-based designer and marketer of medical devices for the dental industry.
Shares traded at a price of $315.33 per unit at close on Tuesday for a market capitalization of $24.84 billion.
The stock has a price-earnings ratio of 13.22, which is much more compelling than the industry median of 36.43, and the PEG ratio of 0.48 is also better than the industry median of 3.16.
The stock price has gained 15.5% over the past year for a 52-week range of $127.88 to $334.64.
GuruFocus assigned a very good rating of 7 out of 10 to the company's financial strength and a high rating of 8 out of 10 to its profitability.
Wall Street sell-side analysts recommend an overweight rating for this stock with an average target price stands at $284.43 per share.
Disclosure: I have no positions in any securities mentioned.
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