Don't Miss Out on These Summer Deals
Since the start of June, the Dow is off 3.5%, and bargain hunters
are on the prowl. They know that stocks are undervalued and they
don't want to miss out on a good deal.
What most investors don't realize about declining markets is
that some stocks get hit for a good reason. In other words, not all
stocks that go down are bargains.
However, there are some truly undervalued stocks out there. The
trick is being able to tell the difference. I recently gave you a
8 False Bargain Stocks
. Now I want to give you a list of undervalued stocks to buy. These
stocks have bent in the market storm, but they are not breaking.
And these undervalued stocks represent some of the finest buys on
the market today.
Undervalued Stock to Buy #1 - Carbo Ceramics (CRR)
) helps boost the output for natural gas and oil wells, which is
what every energy company wants to do right now.
In the most recent quarter, the company logged a profit of $30.6
million, or $1.30 per share, up from its first-quarter profit of
$19 million, or 82 cents per share, in 2010. Analysts had been
expecting earnings of $1.02 per share, resulting in a 27% earnings
surprise. CRR's revenues increased to $150.8 million from $123.5
million and flew past estimates of $129.5 million.
This is a company that's using the market to its advantage and
even though it is trading north of $145, it is still an excellent
bargain this summer.
Undervalued Stock to Buy #2 - Edwards Lifesciences Corp. (EW)
Medical device company
Edwards Lifesciences Corp.
) is the world's largest creator of artificial heart valves,
including valves made from animal tissue and annuloplasty rings
that repair damaged valves. Other major products include heart
monitoring systems, various types of surgical tubes and
In the first quarter, sales rose 19% to $404.5 million. Net
earnings jumped 33% compared with the first quarter of 2010 to
$63.9 million, while adjusted earnings reached 51 cents per share.
Earnings came in well above the analyst expected EPS of 42 cents,
which gives the company a 21% earnings surprise!
After the successful quarter, Edwards Lifesciences has increased
its 2011 earnings forecast. Sales are expected to be in the $1.66
billion to $1.74 billion range, while its expected EPS has been
raised to $2.01 to $2.07 for the year. At around $86.50, this is an
Undervalued Stock to Buy #3 - Deere & Company (DE)
When it comes to construction equipment, there's only one company
to own right now:
Deere & Company
). DE is the world's largest farm equipment manufacturer and a
leading producer of construction, forestry, and commercial and
residential lawn care equipment. If you have ever seen a tractor,
you probably recognize the signature John Deere green color or know
the company's "Nothing runs like a Deere" slogan.
In the most recent quarter, Deere's sales increased 25% to $8.9
million compared with $7.1 billion in the same period last year.
Earnings jumped from $1.28 per share in the second fiscal quarter
of 2010 to $2.12 per share last quarter. That's a 65% increase!
Analysts expected the company to make revenue of $8.14 billion and
earnings of $2.06 per share, so Deere posted a 9% sales surprise
and 3% earnings surprise. The company also raised its full-year
forecast. It now expects sales to rise 21% to 23% compared with a
previous guidance of 18% to 20% increase.
Deere is also continuing its massive expansion efforts. The
company announced a new plan to invest $80 million in building a
new equipment plant in China to help meet the strong demand in the
regions. With the demand for crops and crop prices maintaining high
levels, Deere is a great undervalued stock to buy this summer. It
closed yesterday at $82.
Undervalued Stock to Buy #4 - Avago Technologies Ltd. (AVGO)
Avago Technologies Ltd.
) is an integrated-circuit semiconductor company. For three decades
it was a part of
), and then it was spun off together with the whole HP
semiconductor business as part of
). As part of HP's semiconductor business, Avago assembled a team
of over 1,000 design and product engineers and developed an
extensive portfolio of intellectual property plans that currently
include more than 5,000 U.S. and foreign patents and patent
applications. Avago operates design centers in Asia, Europe and the
United States, and manufacturing facilities primarily in Asia.
About 80% of its sales come from outside the United States, which
is creating an excellent tailwind for the company as the U.S.
dollar is back on the decline.
Recent earnings showed a net profit of $119 million, or 48 cents
per share, up from 2009′s profit of $38 million, or 16 cents per
share, in the year ago quarter. Excluding items and charges, net
profit was 65 cents per share, up from 36 cents per share in the
previous year and ahead of the consensus estimate of 57 cents per
share by 14%. This undervalued stock currently trades just above