As of March 4, the following stocks look undervalued 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.
Caterpillar
The first company that makes the cut is Caterpillar Inc. (CAT, Financial), a Deerfield, Illinois-based manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines that it then supplies worldwide.
As of Friday, the price-earnings ratio without NRI is 16.53, which is more compelling than the industry median of 16.22, while the PEG ratio of 0.90 is more compelling than the industry median of 1.23.
On Friday, the closing price was $195.66 per share. The stock has declined 11.7% over the past year for a market capitalization of $104.85 billion and a 52-week range of $179.67 to $246.69.
Wall Street sell-side analysts issued a median recommendation rating of overweight and an average target price of $238.52 per share for the stock.
Dell Technologies
The second company that meets the criteria is Dell Technologies Inc. (DELL, Financial), a Round Rock, Texas-based developer and manufacturer of IT hardware, software and high technology solutions, selling its products and services to global customers.
As of Friday, the price-earnings ratio without NRI is 7.41, which is more appealing than the industry median of 20.41, while the PEG ratio of 0.49 has more appeal than the industry median of 1.51.
The closing price on Friday was $51.96 per share, after rising 20.7% over the past year. The market capitalization is $39.69 billion and the 52-week range is $42.17 to $61.54.
Wall Street sell-side analysts issued a median recommendation rating of overweight for the stock and have established an average target price of $65.32 per share.
TFI International
The third company that qualifies is TFI International Inc. (TFII, Financial), a Canada-based transportation and logistics company.
As of Friday, the price-earnings ratio without NRI is 15.01, which is more compelling than the industry median of 15.34, while the PEG ratio of 0.51 is more compelling than the industry median of 1.53.
The closing price on Friday was $103.25 per share, reflecting a 43.5% increase over the past year for a market capitalization of $9.66 billion and a 52-week range of $69.16 to $120.5.
Wall Street sell-side analysts issued a median recommendation rating of buy for the stock and have established an average target price of $129.96 per share.
