These stocks seem to be undervalued as of Feb. 25, as their trailing 12-month price-earnings ratios are less than 20 and their price-earnings to growth (PEG) ratios stand below 1.0.
In addition to meeting the above criteria, these companies also have positive ratings from Wall Street sell-side analysts.
Insperity
The first company that meets these criteria is Insperity Inc (NSP, Financial).
Shares of the Kingwood, Texas-based provider of human resources and business solutions for small and medium-sized businesses traded at a price of $69.33 per unit at close on Tuesday for a market capitalization of $2.73 billion.
The price-earnings ratio is 18.84 versus the industry median of 17.36 and the PEG ratio is 0.55 versus the industry median of 1.74.
The stock has fallen 19% so far this year to below the 35-day simple moving average line.
Insperity Inc has received a positive GuruFocus rating of 6 out of 10 for its financial strength and a GuruFocus rating of 7 out of 10 for its profitability.
Wall Street recommends an overweight rating for the stock with an average target price of $95.50 per share.
H.B. Fuller
The second company that meets the above-listed criteria is H.B. Fuller Company (FUL, Financial).
Shares of the Saint Paul, Minnesota-based global specialty chemicals company traded at a price of $43.75 per unit on Tuesday for a market capitalization of $2.25 billion.
The price-earnings ratio is 17.36 versus the industry median of 17.42 and the PEG ratio is 0.98 versus the industry median of 1.52.
Year to date, the share price has declined 15% to substantially below the 35-day simple moving average line.
GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a very positive profitability rating of 7 out of 10.
Wall Street sell-side analysts issued an overweight recommendation rating for this stock with an average target price of $52.86 per share.
Hypera SA
The third company that meets the above-listed criteria is Hypera SA (HYPMY, Financial).
Shares of the Brazilian specialty and generic drug manufacturer traded at a price of $8.13 at close on Tuesday for a market capitalization of $5.13 billion.
The price-earnings ratio is 18.51 versus the industry median of 21.56 and the PEG ratio is 0.87 versus the industry median of 1.89.
The stock has fallen 10% so far this year and its share price is now trading significantly below the 35-day simple moving average line.
GuruFocus has assigned Hypera SA a high rating of 8 out of 10 for its financial strength and a very positive rating of 7 out of 10 for its profitability.
Wall Street recommends an overweight rating for the stock and has established an average target price of 35.29 Brazilian Real (approximately $8.04) per share.
Disclosure: I have no positions in any securities mentioned.
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