As of Jan. 8, the three securities below appear to be undervalued by the market, as their price-earnings ratios without non-recurring items (NRI) trade below 20 while their price-earnings to growth (PEG) ratios trade below 1.
Furthermore, these stocks have received positive recommendation ratings from sell-side analysts on Wall Street.
The Hartford Financial Services Group Inc
The first company that qualifies is The Hartford Financial Services Group Inc (HIG, Financial), a Hartford, Connecticut-based insurer and financial services provider.
As of Jan. 8, the price-earnings ratio without NRI is 10.43, which appeals more than the industry median of 13.06, while the PEG ratio of 0.87 is also more appealing than the industry median of 2.
On Jan. 8, the closing price was $49.89 per share, net earnings without NRI was $4.78 per share for the trailing 12 months and the five-year Ebitda growth rate was 12%.
The share price decreased by 16.15% over the past year, determining a market capitalization of $17.88 billion and fluctuating in a 52-week range of $19.04 to $61.32.
GuruFocus assigned a score of 4 out of 10 for the company's financial strength and of 5 out of 10 for its profitability.
As of January, Wall Street sell-side analysts recommended one strong buy, six buys and 11 hold ratings for the stock with an average target price of $54.19 per share.
Arch Capital Group Ltd
The second company that qualifies is Arch Capital Group Ltd (ACGL, Financial), a Bermuda-based global provider of insurance, reinsurance and several other mortgage insurance products.
As of Jan. 8, the price-earnings ratio without NRI was 13.06, which is in line with the industry median, while the PEG ratio was 0.79, which is more compelling when compared to the industry median of 2.
The closing price on Jan. 8 was $36.44 per share, while net earnings without NRI were $2.79 per share for the trailing 12 months and the five-year Ebitda growth rate was 16.5%.
The share price has decreased by 16.6% over the past year for a market capitalization of $14.8 billion and a 52-week range of $20.93 to $48.32.
GuruFocus assigned a score of 5 out of 10 for the company's financial strength and of 6 out of 10 for its profitability.
As of January, Wall Street sell-side analysts recommend one strong buy, five buys, three holds and only one underperform rating for an average target price of $40.20 per share.
NortonLifeLock Inc
The third company that qualifies is NortonLifeLock Inc (NLOK, Financial), a Tempe, Arizona-based global provider of cyber safety solutions.
As of Jan. 8, the price-earnings ratio without NRI was 16.68, which appeals more than the industry median of 31.77, while the PEG ratio traded at 0.87, which is also more appealing than the industry median of 2.27.
The closing price on Jan. 8 was $21.04 per share, while net earnings without NRI were $1.30 per share for the trailing 12 months ended in September and the five-year Ebitda growth rate was 18.6%.
The share price decreased by 21% over the past year for a market capitalization of $12.45 billion and a 52-week range of $15.12 to $28.70.
GuruFocus assigned a score of 4 out of 10 to the company's financial strength rating and of 6 out of 10 to its profitability.
As of January, Wall Street sell-side analysts recommend a median rating of overweight with an average target price of $25.39 per share for the stock.
Disclosure: I have no positions in any securities mentioned.
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