As of July 2, the following stocks appear undervalued by the market as their price-earnings ratios are less than 20 and their price-earnings to growth (PEG) ratios stand below 1. Furthermore, these stocks have received positive recommendation ratings from analysts in Wall Street.
DLH Holdings
The first company that meets these criteria is DLH Holdings Corp (DLHC, Financial), an Atlanta-based supplier of healthcare and social services in US.
Shares were trading at $7.45 per unit at close on Thursday for a market capitalization of $92.05 million.
The price-earnings ratio of 16.2 is slightly higher than the industry median of 15.71, while the PEG ratio of 0.27 is more compelling than the industry median of 1.45.
The stock has increased by 37.2% over the past year, determining a 52-week range of $3 to $9.
GuruFocus assigned a moderate rating of 4 out of 10 for the company’s financial strength and a positive rating of 6 out of 10 for its profitability.
Currently, Wall Street sell-side analysts recommend a buy rating for this stock.
Northern Technologies International
The second company that qualifies is Northern Technologies International Corp. (NTIC, Financial), a Circle Pines, Minnesota-based seller of specialty chemicals to several industries, including automotive, mechanical, military and oil and gas.
Shares closed at $7.44 on Thursday for a market capitalization of $67.68 million.
The stock has a price-earnings ratio of 18.6, which is higher than the industry median of 16.62. Instead, the PEG ratio of 0.98 is more compelling than the industry median of 1.47.
The share price has fallen by 38.2% over the past year, which has determined a 52-week range of $4.7 to $14.88.
GuruFocus assigned a high rating of 8 out of 10 to the company's financial strength and a positive rating of 5 out of 10 for its profitability.
Currently, Wall Street sell-side analysts recommend buying the stock.
Titan Machinery
The third company that makes the cut is Titan Machinery Inc. (TITN, Financial), a West Fargo, North Dakota-based owner and operator of agricultural and construction equipment chain stores.
Shares were trading at a price of $10.47 per unit at close on Thursday for a market capitalization of $233.63 million.
The stock has a price-earnings ratio of 13.96, which is slightly higher than the industry median of 12.33, while the PEG ratio of 0.48 appeals more than the industry median of 1.43.
The share price has fallen by 48% in the past year for a 52-week range of $6.96 to $21.88.
GuruFocus assigned a moderate rating of 4 out of 10 to both the company's financial strength and its profitability.
Wall Street sell-side analysts recommend an overweight rating for this stock, which means that its share price is foreseen to outperform either the industry or the entire market.
Disclosure: I have no positions in any securities mentioned.
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