As of Aug. 7, the following stocks seem to be undervalued by the market, as their price-earnings ratios are below 20 and their price-earnings to growth (PEG) ratios are below 1. Furthermore, these stocks have received positive recommendation ratings from Wall Street analysts.
Progressive Corp
The first company that meets these criteria is Progressive Corp (PGR, Financial), a Mayfield, Ohio-based insurance company.
Shares were trading at $90.73 per unit at close on Friday for a market capitalization of $53.11 million.
The price-earnings ratio of 12.18 is higher than the industry median of 11.87, while the PEG ratio of 0.57 is more compelling than the industry median of 1.91.
The stock has risen by nearly 15% over the past year, determining a 52-week range of $62.18 to $91.81.
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 an overweight rating for this stock with an average target price of of $91.60 per share.
BWX Technologies Inc
The second company that makes the cut is BWX Technologies Inc (BWXT, Financial), a Lynchburg, Virginia-based manufacturer and supplier of nuclear components primarily to the US aerospace and defense industry.
Shares were trading at $57.36 per unit at close on Friday for a market capitalization of $5.47 billion.
The stock has a price-earnings ratio of 19.92, which is more compelling than the industry median of 20.97, while the PEG ratio of 0.93 is more appealing than the industry median of 1.99.
The share price has increased by 2.74% over the past year, which has determined a 52-week range of $40.40 to $70.57.
GuruFocus assigned a positive rating of 5 out of 10 to the company's financial strength and a very high rating of 8 out of 10 to its profitability.
Currently, Wall Street sell-side analysts recommend an overweight rating for this stock and have established an average target price of $68.13 per share.
Cosan Ltd
The third company that qualifies is Cosan Ltd (CZZ, Financial), a Brazilian distributor of fuel and natural gas, logistics services provider and trader of ethanol, lubricant and sugar.
Shares were trading at a price of $18.70 per unit at close on Friday for a market capitalization of $4.15 billion.
The stock has a price-earnings ratio of 10.7, which is slightly higher than the industry median of 9.62, while the PEG ratio of 0.44 is more compelling than the industry median of 0.88.
The share price has risen by 36.1% in the past year for a 52-week range of $8.56 to $23.70.
GuruFocus assigned a low rating of 3 out of 10 to the company's financial strength and a high rating of 8 out of 10 for its profitability.
Disclosure: I have no positions in any security mentioned.
