As of April 17, the following stocks might be underestimated by the market, as their price-earnings ratios stand below 20 and their price-earnings to growth ratios are below 1.
Furthermore, these stocks have received positive recommendation ratings of hold to buy from sell-side analysts on Wall Street.
Eldorado Resorts Inc
The first company that has the above-listed screening criteria is Eldorado Resorts Inc ERI.
Shares of the Reno, Nevada-based resorts and casinos company were trading at a price of $16.70 per unit at close on Friday for a market capitalization of $1.3 billion.
The stock has a price-earnings ratio of 16.21, which is higher than the industry median of 14.05. The PEG ratio of 0.52 is lower than the industry median of 1.16.
The share price has fallen 66.5% over the past 52 weeks of trading and is now below the middle point of the 52-week range of $6.02 to $70.74.
GuruFocus assigned a low score of 3 out of 10 to the company’s financial strength rating and a very positive score of 7 out of 10 to the profitability rating.
Wall Street sell-side analysts recommend a buy rating for this stock and have established an average target price of $38.60 per share.
iRobot Corp
The second company that has the above-listed screening criteria is iRobot Corp IRBT.
Shares of the Bedford, Massachusetts-based designer and seller of various robots for the consumer market were trading at a price of $50.04 per unit on Friday for a market capitalization of $1.39 billion.
The stock has a price-earnings ratio of 16.85, which is near the industry median of 16.81. The PEG ratio of 0.94 is better than the industry median of 1.45.
The share price has fallen 61% over the past year, placing it lower than the middle point of the 52-week range of $32.79 to $132.30.
GuruFocus assigned the company a very positive financial strength rating of 7 out of 10 and a profitability rating of 9 out of 10.
Wall Street sell-side analysts issued a hold recommendation rating for this stock and have established an average target price of $50.40 per share.
Cavco Industries Inc
The third company that has the above-listed screening criteria is Cavco Industries Inc CVCO.
Shares of the Phoenix, Arizona-based designer, producer and retailer of manufactured homes in the U.S. were trading at a price of $128.79 at close on Friday for a market capitalization of $1.18 billion.
The price-earnings ratio is 14.34 versus the industry median of 7.68. The PEG ratio of 0.73 is higher than the industr median of 0.44.
The share price has risen by 4.2% over the past year to trade below the middle point of the 52-week range of $99.58 to $236.10.
GuruFocus has assigned a rating of 9 out of 10 for the company’s financial strength and a very good score of 7 out of 10 for the profitability rating.
Wall Street sell-side analysts recommend an overweight rating for this stock and have set an average target price of $171 per share.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- 3 Companies With Fast-Growing Earnings
- A Trio of Growth Technology Stocks to Consider
- A Trio of High Earnings Yield Stocks
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
