As of Jan. 31, the following stocks look underestimated by the market, as their price-earnings ratios without non-recurring items trade below 20 while their price-earnings to growth (PEG) ratios trade near or below 1.
Furthermore, Wall Street sell-side analysts have issued positive recommendation ratings for them, which indicates these stocks are expected to trade higher over the coming months.
Regeneron Pharmaceuticals
The first company that makes the cut is Regeneron Pharmaceuticals Inc. (REGN, Financial), a New York-based biopharmaceutical company that engages in the discovery, development and production of drugs for the treatment of several medical conditions.
As of Jan. 31, the price-earnings ratio without NRI is 9.73, which is more compelling than the industry median of 30.08, while the PEG ratio of 0.39 is more compelling than the industry median of 1.85.
On Jan. 31, the closing price was $608.59 per share. The stock has gained 22% over the past year for a market capitalization of $65.53 billion and a 52-week range of $441 to $686.62.
Wall Street sell-side analysts issued a median recommendation rating of overweight and an average target price of $699.14 per share for the stock.
Qorvo
The second company that meets the criteria is Qorvo Inc. (QRVO, Financial), a Greensboro, North Carolina-based developer of wireless and wired connectivity solutions for mobile manufacturers, as well as infrastructure companies and other operators in the defense industry.
As of Jan. 31, the price-earnings ratio without NRI is 14.32, which is more appealing than the industry median of 23.76, while the PEG ratio of 0.94 has more appeal than the industry median of 1.5.
The closing price on Jan. 31 was $137.28 per share, after having dropped 22.84% over the past year. The market capitalization is $15.29 billion and the 52-week range is $123.92 to $201.68.
Wall Street sell-side analysts issued a median recommendation rating of overweight for the stock and have established an average target price of $202.19 per share.
Brunswick
The third company that qualifies is Brunswick Corp. (BC, Financial). The Mettawa, Illinois-based company designs and manufactures outboard, sterndrive and inboard engines as well as engine parts and consumables under the Mercury Marine, Mercury, Mercury MerCruiser, Mariner, Mercury Racing and Mercury Diesel brands.
As of Jan. 31, the price-earnings ratio without NRI is 12.08, which is more compelling than the industry median of 21.85, while the PEG ratio of 0.62 is more compelling than the industry median of 1.69.
The closing price on Jan. 31 was $90.79 per share, reflecting a 5.55% increase over the past year for a market capitalization of $7.07 billion and a 52-week range of $79.55 to $117.62.
Wall Street sell-side analysts issued a median recommendation rating of overweight for the stock and have established an average target price of $121 per share.
