Momentum Ideas: 15 Undervalued Stocks Approaching An Inflection Point

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Compiled by Eben Esterhuizen, CFA: The following is a list of stocks that are approaching an inflection point, based on moving average trends. For this article, we define an inflection point as the convergence between the 50-day and 200-day moving averages.

When these two moving averages cross, it often represents a shift in investor sentiment. If the 50-day MA moves above the 200-day MA (bullish), it's called a "Golden Cross" signal. If, on the other hand, the 50-day MA crosses below the 200-day MA (bearish), it's called the "Death Cross".

All of the stocks mentioned below have recently seen the SMA50 move above the SMA200 (bullish signal). In addition, all of these stocks are deeply undervalued, when comparing the current price against the average analyst target price (used as a proxy for fair value).

Yes, there are many limitations to this approach of finding undervalued companies, but the goal here is to give you a starting point for your own analysis. Analysts seem to think these momentum stocks are deeply undervalued, what do you think? Use the links below to dig deeper.

Target price and momentum data sourced from Finviz.

Analyze These Ideas (Tools Will Open In New Windows)

1. Access a performance overview of all stocks mentioned below
2. Compare analyst ratings for the top 9 companies mentioned below
3. Compare charts for the top 3 companies mentioned below

 


The list has been sorted by discount to average analyst target price.

1. Geron Corporation (GERN): Drug Manufacturer. Market cap of $589.89M. SMA50 at $5.59 vs. SMA200 at $5.45. Current price at $5.84 vs. average analyst target price at $10.75 (implies a discount of -45.67%). Short float at 14.66%, which implies a short ratio of 10.82 days. The stock has gained 0.35% over the last year.

2. Assured Guaranty Ltd. (AGO): Surety & Title Insurance Industry. Market cap of $3.09B. SMA50 at $18.66 vs. SMA200 at $18.23. Current price at $17.14 vs. average analyst target price at $28.00 (implies a discount of -38.79%). Short float at 5.47%, which implies a short ratio of 3.83 days. The stock has lost -31.99% over the last year.

3. Yongye International, Inc. (YONG): Agricultural Chemicals Industry. Market cap of $401.87M. SMA50 at $7.88 vs. SMA200 at $7.83. Current price at $8.29 vs. average analyst target price at $13.50 (implies a discount of -38.59%). Short float at 11.24%, which implies a short ratio of 6.77 days. The stock has gained 3.56% over the last year.

4. Syneron Medical Ltd. (ELOS): Medical Appliances & Equipment Industry. Market cap of $375.47M. SMA50 at $10.12 vs. SMA200 at $10.03. Current price at $10.27 vs. average analyst target price at $15.00 (implies a discount of -31.53%). Short float at 4.58%, which implies a short ratio of 16.5 days. The stock has gained 2.73% over the last year.

5. Micromet, Inc. (MITI): Biotechnology Industry. Market cap of $566.19M. SMA50 at $7.1 vs. SMA200 at $7.08. Current price at $7.05 vs. average analyst target price at $10.19 (implies a discount of -30.81%). Short float at 5.98%, which implies a short ratio of 12.94 days. The stock has lost -1.96% over the last year.

6. Tessera Technologies Inc. (TSRA):
Semiconductor Equipment & Materials Industry. Market cap of $1.05B. SMA50 at $19.00 vs. SMA200 at $18.43. Current price at $20.68 vs. average analyst target price at $29.00 (implies a discount of -28.69%). Short float at 3.45%, which implies a short ratio of 4.77 days. The stock has lost -13.09% over the last year.

7. Ener1, Inc. (HEV): Industrial Electrical Equipment Industry. Market cap of $705.99M. SMA50 at $3.91 vs. SMA200 at $3.76. Current price at $4.36 vs. average analyst target price at $6.00 (implies a discount of -27.33%). Short float at 4.35%, which implies a short ratio of 12.47 days. The stock has lost -15.4% over the last year.

8. MAP Pharmaceuticals, Inc. (MAPP): Drug Manufacturer. Market cap of $442.91M. SMA50 at $15.14 vs. SMA200 at $14.56. Current price at $14.92 vs. average analyst target price at $20.14 (implies a discount of -25.92%). Short float at 5.96%, which implies a short ratio of 11.69 days. The stock has gained 72.54% over the last year.

9. Force Protection Inc. (FRPT): Trucks & Other Vehicles Industry. Market cap of $360.43M. SMA50 at $5.06 vs. SMA200 at $4.92. Current price at $5.11 vs. average analyst target price at $6.88 (implies a discount of -25.73%). Short float at 3.67%, which implies a short ratio of 4.68 days. The stock has lost -1.16% over the last year.

10. Harbin Electric, Inc. (HRBN): Industrial Electrical Equipment Industry. Market cap of $529.69M. SMA50 at $19.95 vs. SMA200 at $19.50. Current price at $18.40 vs. average analyst target price at $24.67 (implies a discount of -25.42%). Short float at 21.38%, which implies a short ratio of 7.3 days. The stock has lost -15.59% over the last year.

11. Wausau Paper Corp. (WPP): Paper & Paper Products Industry. Market cap of $401.47M. SMA50 at $8.37 vs. SMA200 at $8.17. Current price at $8.22 vs. average analyst target price at $11.00 (implies a discount of -25.27%). Short float at 3.85%, which implies a short ratio of 6.33 days. The stock has lost -17.19% over the last year.

12. Navios Maritime Holdings Inc. (NM): Shipping Industry. Market cap of $568.74M. SMA50 at $5.85 vs. SMA200 at $5.82. Current price at $5.54 vs. average analyst target price at $7.41 (implies a discount of -25.24%). Short float at 0.99%, which implies a short ratio of 1.76 days. The stock has lost -1.05% over the last year.

13. Panasonic Corporation (PC): Electronic Equipment Industry. Market cap of $30.95B. SMA50 at $14.12 vs. SMA200 at $13.80. Current price at $14.70 vs. average analyst target price at $19.63 (implies a discount of -25.11%). Short float at 0.01%, which implies a short ratio of 0.56 days. The stock has gained 17.53% over the last year.

14. Fortress Investment Group LLC (FIG): Asset Management Industry. Market cap of $2.29B. SMA50 at $4.19 vs. SMA200 at $4.10. Current price at $4.81 vs. average analyst target price at $6.42 (implies a discount of -25.08%). Short float at 1.89%, which implies a short ratio of 1.46 days. The stock has gained 15.91% over the last year.

15. Koninklijke Philips Electronics NV (PHG): Electronic Equipment Industry. Market cap of $29.62B. SMA50 at $31.24 vs. SMA200 at $31.01. Current price at $31.11 vs. average analyst target price at $41.45 (implies a discount of -24.95%). Short float at 0.08%, which implies a short ratio of 0.64 days. The stock has gained 18.51% over the last year.


Disclosures: At time of writing, Eben Esterhuizen did not own any of the stocks mentioned above.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas


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