As of Nov. 18, the following stocks look underestimated 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 near or below 1.
Furthermore, Wall Street sell-side analysts have recommended positive ratings for them, which indicates that these stocks are foreseen to trade higher over the months ahead.
MKS Instruments Inc
The first company that makes the cut is MKS Instruments Inc (MKSI, Financial), an Andover, Massachusetts-based provider of production process measurement, analyzing and controlling instruments and systems to the manufacturing industry.
As of Nov. 18, the price-earnings ratio without NRI is 17.70, which is more compelling than the industry median of 22.09, while the PEG ratio of 0.86 is more compelling than the industry median of 1.68.
On Nov. 18, the closing price was $164.33 per share. The share price has increased by 24.2% over the past year for a market capitalization of $9.11 billion and a 52-week range of $131.17 to $199.44.
Wall Street sell-side analysts recommend a median rating of buy and an average target price of $213.20 per share for the stock.
Medifast Inc
The second company that matches the criteria is Medifast Inc (MED, Financial), a Baltimore, Maryland-based manufacturer and distributor of consumable health and nutritional products.
As of Nov. 18, the price-earnings ratio without NRI is 16.36, which is more appealing than the industry median of 21.75, while the PEG ratio is 0.45, which has more appeal than the industry median of 2.06.
The closing price on Nov. 18 was $218.29 per share, after having increased 22.04% over the past year. The market capitalization is $2.54 billion and the 52-week range is $169.01 to $336.99.
Wall Street sell-side analysts recommend a median rating of buy for the stock and have established an average target price of $348 per share.
Radiant Logistics Inc
The third company that holds the criteria is Radiant Logistics Inc (RLGT, Financial), a Renton, Washington-based provider of multi-modal transportation and logistics services primarily in North America.
As of Nov. 18, the price-earnings ratio without NRI is 16.38, which is more compelling than the industry median of 16.81, while the PEG ratio of 0.61 is also more compelling than the industry median of 1.71.
The closing price on Nov. 18 was $8.52 per share, reflecting a 49.21% increase over the past year for a market capitalization of $423.66 million and a 52-week range of $5.52 to $8.74.
Wall Street sell-side analysts recommend a median rating of buy for the stock and have established an average target price of $10.75 per share.
Griffon Corp
The fourth stock that qualifies is Griffon Corp (GFF, Financial), a New York-based manufacturer and seller of various tools and accessories, including home and building products as well as professional and defense electronics products.
As of Nov. 18, the price-earnings ratio without NRI is 15.88, which is more appealing than the industry median of 24.71, while the PEG ratio is 1.01, which has more appeal than the industry median of 2.44.
The closing price on Nov. 18 was $25.6 per share after it increased by 22.25% over the past year. The market capitalization is $1.45 billion and the 52-week range is $19.22 to $29.19.
Wall Street sell-side analysts recommend a median rating of buy for the stock and have established an average target price of $33.60 per share.
