As of Aug. 26, 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 are less than 1. Furthermore, these stocks have positive recommendation ratings on Wall Street.
Trinet Group Inc
The first company that possesses the above listed criteria is Trinet Group Inc (TNET, Financial), a Dublin, California-based provider of staffing and employment services to small and midsize companies in North America.
Shares were trading at $68 each at close on Wednesday for a market capitalization of $4.58 billion.
The price-earnings ratio of 14.56 appeals more than the industry median of 17.73. The PEG ratio is 0.84 versus the industry median of 1.67.
The stock has risen by almost 2% over the past year for a 52-week range of $27.79 to $74.07.
GuruFocus assigned a positive rating of 6 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 this stock with an average target price of $73.25 per share.
DXP Enterprises Inc
The second company that qualifies is DXP Enterprises Inc (DXPE, Financial), a Houston, Texas-based distributor of maintenance, repair and operating products, equipment and related services to North American energy and industrial customers.
Shares were trading at $19.07 each at close on Wednesday for a market capitalization of $339.04 million.
The stock has a price-earnings ratio of 15.13 and a PEG ratio of 0.32, which are more compelling than the industry medians of 15.47 and 1.46, respectively.
The share price has declined by 38.5% over the past year, determining a 52-week range of $10.44 to $43.94.
GuruFocus assigned a positive rating of 5 out of 10 to the company's financial strength and of 6 out of 10 to its profitability.
Wall Street sell-side analysts recommend an overweight rating for this stock and have established an average target price of $28 per share.
Allstate Corp
The third company that makes the cut is Allstate Corp (ALL, Financial), a Northbrook, Illinois-based provider of insurance products to clients in North America.
Shares were trading at a price of $93.01 each at close on Wednesday for a market capitalization of $29.05 billion.
The stock has a price-earnings ratio of 6.95 and a PEG ratio of 0.63, both of which are more compelling than their respective industry medians of 11.63 and 2.07.
The share price has fallen by 9.2% over the past year, determining a 52-week range of $64.13 to $125.92.
GuruFocus assigned a positive rating of 5 out of 10 to the company's financial strength and a very good rating of 7 out of 10 for its profitability.
Wall Street sell-side analysts recommend an overweight rating for this stock and have set an average target price of $118.23 per share.
Disclosure: I have no position in any security mentioned.
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