As of Feb. 4, the three securities below seem 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 stand below 1.
Furthermore, these stocks have received positive recommendation ratings from the community of sell-side analysts on Wall Street.
Koppers Holdings Inc
The first company that qualifies is Koppers Holdings Inc (KOP, Financial), a Pittsburgh, Pennsylvania-based supplier of treated wood products and treatment chemicals as well as carbon compounds.
As of Feb. 4, the price-earnings ratio without NRI is 8.2, which appeals more than the industry median of 23.14, while the PEG ratio of 0.27 is also more appealing than the industry median of 2.20.
The stock had net earnings without NRI of $4.28 per share for the trailing 12 months that ended in September 2020 and a five-year Ebitda growth rate of 30.40%.
On Feb. 4, the closing price was $35.01 per share. The share price has risen by 5.3% over the past year, determining a market capitalization of $737.50 million and fluctuating in a 52-week range of $8.25 to $36.79.
GuruFocus assigned a score of 4 out of 10 for the company's financial strength and of 7 out of 10 for its profitability.
As of February, Wall Street sell-side analysts recommended one strong buy, one buy and two hold ratings for the stock with an average target price of $42.20 per share.
Cia Paranaense De Energia Copel
The second company that qualifies is Cia Paranaense De Energia Copel (ELP, Financial), a Curitiba, Brazil-based distributor of electricity in the Brazilian state of Paraná.
As of Feb. 4, the price-earnings ratio without NRI is 5.02, which appeals more than the industry median of 16.64, while the PEG ratio is 0.72, which is more compelling than the industry median of 2.67.
The stock had net earnings without NRI of $2.46 per share for the trailing 12 months that ended in September 2020 and a five-year Ebitda growth rate of 7.40%.
The closing price on Feb. 4 was $12.35 per share. The share price has decreased by nearly 30% over the past year for a market capitalization of $3.38 billion and a 52-week range of $8.28 to $18.10.
GuruFocus assigned a score of 5 out of 10 for the company's financial strength and of 7 out of 10 for its profitability.
As of February, Wall Street sell-side analysts recommend one buy and one hold rating for the stock for an average target price of $14.60 per share.
Gray Television Inc
The third company that qualifies is Gray Television Inc (GTN, Financial), an Atlanta, Georgia-based television broadcasting company.
As of Feb. 4, the price-earnings ratio without NRI is 7.88, which appeals more than the industry median of 21.73, while the PEG ratio trades at 0.41, which is also more appealing than the industry median of 1.6.
The stock had net earnings without NRI of $2.33 per share for the trailing 12 months that ended in September 2020 and a five-year Ebitda growth rate of 18.20%.
The closing price on Feb. 4 was $18.36 per share. The share price decreased by 16.43% over the past year for a market capitalization of $1.76 billion and a 52-week range of $8.53 to $22.83.
GuruFocus assigned a score of 4 out of 10 to the company's financial strength rating and of 8 out of 10 to its profitability.
As of February, Wall Street sell-side analysts recommend five strong buys and two buys for an average target price of $24 per share for the stock.
Disclosure: I have no positions in any securities mentioned.
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