As of Sept. 16, the following stocks appear 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 sell-side analysts on Wall Street.
Systemax Inc
The first company that qualifies is Systemax Inc (SYX, Financial), a Port Washington, New York-based marketer and supplier of brand name and private label industrial and business equipment.
Shares traded at a price of $22.34 each at close on Wednesday for a market capitalization of $837.41 million.
The price-earnings ratio of 17.59, though higher than the industry median of 15.46, is standing below 20. The PEG ratio of 0.45 is more compelling than the industry median of 1.52.
The stock price is mostly flat over the past year and has a 52-week range of $14 to $26.57.
GuruFocus assigned a very good rating of 7 out of 10 for the company's financial strength and a positive rating of 5 out of 10 for its profitability.
As of September, Wall Street sell-side analysts recommend a buy rating for this stock and have established an average target price of $28 per share.
Patrick Industries Inc
The second company that meets the criteria is Patrick Industries Inc (PATK, Financial), an Elkhart, Indiana-based distributor of building products and materials for several markets in North America, including recreational vehicles, industrial, marine and manufactured housing.
Shares traded at a price of $52.72 each at close on Wednesday for a market capitalization of $1.24 billion.
The stock has a price-earnings ratio of 19.38, which appeals more than the industry median of 22.22, while the PEG ratio of 0.62 is more compelling than the industry median of 2.2.
The share price has risen 28.3% over the past year, determining a 52-week range of $16.70 to $69.84.
GuruFocus assigned a positive rating of 5 out of 10 to the company's financial strength and a remarkably high rating of 8 out of 10 to its profitability.
As of September, Wall Street sell-side analysts recommend a buy rating for this stock and have set an average target price of $80.67 per share.
Johnson Outdoors Inc
The third company that makes the cut is Johnson Outdoors Inc (JOUT, Financial), a Racine, Wisconsin-based designer, manufacturer and marketer of camping, diving, watercraft and marine electronics products.
Shares traded at a price of $83.91 each at close on Wednesday for a market capitalization of $846.22 million.
The stock has a price-earnings ratio of 19.42, which is more convenient than the industry median of 22.72, while the PEG ratio of 0.7 is more appealing than the industry median of 1.94.
The share price has risen by 43.4% over the past year, determining a 52-week range of $48.76 to $97.
GuruFocus assigned a high rating of 8 out of 10 to both the company's financial strength and its profitability.
Disclosure: I have no positions in any security mentioned.
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