Looking for attractively priced growth stocks?
To help you explore this theme, we started with a universe of about 200 high growth stocks, with projected earnings per share growth above 20% over the next five years.
To refine the list, we collected data on valuation ratios, and identified a list of deeply undervalued growth stocks. All of the stocks mentioned below have cheaper valuations than their industry averages.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
Valuations suggest that these growth companies should be on your 2012 watch list–do you agree?
List sorted by projected growth rate.
Best Undervalued Stocks For March 2012: Telecom Corporation of New Zealand Limited (NZT)
Telecom Corporation of New Zealand Limited, together with its subsidiaries, provides telecommunications services, as well as information, communication, and technology services in New Zealand and Australia. Its products and services include local, national, international, and value-added telephone services; mobile services; data, broadband, and Internet services; IT consulting, implementation, and procurement services; and equipment sales and installation services. The company also involves in the retail of telecommunications products and services. It serves residential, business, and government customers. Telecom Corporation of New Zealand Limited was founded in 1987 and is based in Auckland, New Zealand.
Advisors’ Opinion:
- By Chuck Carlson At 2012-2-23Trading for just seven times earnings and yielding a 10% dividend, it’s also nice to know that it’s a monopoly in New Zealand. And, on top of that, with gold prices soaring, it’s worth noting that the currency most closely correlated with gold is the New Zealand currency (affectionately known as the Kiwi dollar), making the company a nice backdoor play on gold.
Best Undervalued Stocks For March 2012: Neoprobe Corporation (NEOP)
Neoprobe Corporation, a biomedical company, engages in the development and commercialization of precision diagnostics that enhance patient care and improve patient benefit. The company is developing and commercializing targeted agents aimed at the identification of occult (undetected) disease. Neoprobe?s two lead radiopharmaceutical agent platforms, Lymphoseek and RIGScan are intended to help surgeons better identify and treat certain types of cancer. Lymphoseek is a diagnostic imaging agent intended for radiolabeling and administration in radiodetection and visualization of the lymphatic system draining the region of injection for delineation of the lymphatic tissue; and RIGScan is an intraoperative biologic targeting agent consisting of a radiolabeled murine monoclonal antibody. The company has a biopharmaceutical development and supply agreement with Laureate Biopharmaceutical Services, Inc. to support the initial evaluation of the viability of the CC49 master working cell bank, as well as the initial steps in re-validating the commercial production process for the biologic agent used in RIGScan CR. The company was founded in 1983 and is based in Dublin, Ohio.
Advisors’ Opinion:
- By Putnam At 2011-10-20Neoprobe Corporation Common St (AMEX:NEOP): This equity had 12,374,458 shares sold short as of Aug 31st, as compared to 11,847,479 on Aug 15th, which represents a change of 526,979 shares, or 4.4%. Days to cover for this company is 17 and average daily trading volume is 745,501.
Best Undervalued Stocks For March 2012: 1st United Bancorp Inc. (FL) (FUBC)
1st United Bancorp, Inc. operates as the financial holding company for 1st United Bank that provides financial services to residents and businesses in Florida. Its deposit products include checking accounts, money market accounts, certificates of deposit, individual retirement accounts, sweep investment capabilities, negotiable order of withdrawal accounts, savings accounts, time deposits, and demand deposits. The company?s loan portfolio comprises commercial loans, including collateralized loans for the working capital, business expansion, and purchase of equipment and machinery; small business loans consisting of SBA lending; Export-Import Bank insured or guaranteed loans; residential real estate loans to enable borrowers to purchase, refinance, and construct upon or improve real property; home equity loans; and consumer loans, including collateralized and uncollateralized loans for financing automobiles, boats, home improvements, and personal investments. It also provides automated teller machine, telephone, and Internet banking services. As of April 26, 2011, the company operated 15 branches in Brevard, Broward, Indian River, Miami-Dade, and Palm Beach counties in South Florida. 1st United Bancorp, Inc. is headquartered in Boca Raton, Florida.
Best Undervalued Stocks For March 2012: The Bank of Kentucky Financial Corp. (BKYF)
The Bank of Kentucky Financial Corporation operates as the holding company for The Bank of Kentucky that provides various financial product and solutions. It accepts various deposit products that include regular passbook savings accounts, negotiable order of withdrawal accounts, money market deposit accounts, term certificate accounts, and individual retirement accounts. The company?s loan portfolio comprises nonresidential real estate loans; residential real estate loans; commercial loans; owner-occupied commercial real estate loans; commercial real estate loans; construction and land development loans; and consumer loans, including automobile loans, recreational vehicle loans, and personal loans. It also provides checking, lockbox, and other treasury management services; electronic banking products, such as Internet banking and debit cards; and specialized services and expertise in the areas of wealth management and trust. The company operates through 31 offices located in northern Kentucky, which includes Boone, Kenton, and Campbell counties, and parts of Grant and Gallatin counties in northern Kentucky, as well as greater Cincinnati, Ohio; and 47 ATMs. The company was founded in 1990 and is based in Crestview Hills, Kentucky.
Best Undervalued Stocks For March 2012: CMS Energy Corporation (CMS)
CMS Energy Corporation, through its subsidiaries, operates as an energy company primarily in Michigan. It operates in three segments: Electric Utility, Gas Utility, and Enterprises. The Electric Utility segment engages in the generation, purchase, distribution, and sale of electricity. The Gas Utility segment involves in the purchase, transmission, storage, distribution, and sale of natural gas. The Enterprises segment engages in independent power production and marketing. This segment owns power generation facilities fueled mostly by natural gas and biomass. At December 31, 2009, this segment had ownership interests in independent power plants totaling 1,202 gross Megawatt. The company serves individuals and companies operating in the alternative energy, automotive, chemical, metal, food products, and various other industries. As of December 31, 2009, it served 1.8 million electric customers and 1.7 million gas customers. The company was founded in 1987 and is based in Jackson, Michigan.
Best Undervalued Stocks For March 2012: Glatfelter (GLT)
P. H. Glatfelter Company manufactures and sells specialty papers and fiber-based engineered materials in the United States and internationally. It offers carbonless and forms papers for credit card receipts, multi-part forms, security papers, and other end-user applications; book publishing papers for the production of hardbound books and other book publishing needs; envelope and converting papers for the direct mail market, shopping bags, and other converting applications; and engineered products for digital imaging, transfer, casting, release, postal, playing card, and other niche specialty applications. The company also provides food and beverage paper used for tea bags and single serve coffee products; metallized products used in the labeling of beer bottles, innerliners, gift wrap, self-adhesive labels, and other consumer products applications; and composite laminates papers used in production of decorative laminates, furniture, and flooring applications, as well as a line of paper products used in batteries, medical masks, and other engineered applications. In addition, it offers airlaid non-woven fabric-like materials used in feminine hygiene products, adult incontinence products, cleaning pads and wipes, food pads, napkins and tablecloths, and baby wipes. The company markets its products directly, as well as through wholesale paper merchants, brokers, and agents. P. H. Glatfelter Company was founded in 1864 and is headquartered in York, Pennsylvania.
