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5 Stocks to Buy for Enterprise Investors

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There are a number of great companies in the market today. By using the ModernGraham Valuation Model, I've selected the five undervalued companies reviewed by ModernGraham trading closest to their 52 week low.

Each of these companies has been determined to be suitable for the Enterprising Investor according to the ModernGraham approach .

Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore need to select only the companies that present the least amount of risk.

Enterprising Investors, on the other hand, are able to do substantial research and can select companies that present a moderate (though still low) amount of risk.

Let's take a look at each of these stocks to buy…

Stocks to Buy for Enterprise Investors: Cerner Corporation (CERN)

Cerner Corporation ( CERN ) is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the poor dividend history, and the high PEmg and PB ratios. The Enterprising Investor is only concerned with the lack of dividends. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from 87 cents per share in 2012 to an estimated $1.71 for 2016. This level of demonstrated earnings growth outpaces the market's implied estimate of 9.8% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Cerner Corporation revealed the company was trading above its Graham Number of $24.52. The company does not pay a dividend. Its PEmg (price over earnings per share - ModernGraham) was 36.23, which was below the industry average of 40.07, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

Finally, the company was trading above its Net Current Asset Value (NCAV) of 15 cents per share. ( See the full valuation )

Stocks to Buy for Enterprise Investors: Kimco Realty Corp (KIM)

Kimco Realty Corp ( KIM ) is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings stability over the last ten years, and the high PEmg ratio. The Enterprising Investor is only concerned with the level of debt relative to the net current assets. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from 29 cents per share in 2012 to an estimated $1.24 for 2016. This level of demonstrated earnings growth outpaces the market's implied estimate of 7.79% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Kimco Realty Corp revealed the company was trading above its Graham Number of $19.53. The company pays a dividend of $1.01 per share, for a yield of 3.4%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share - ModernGraham) was 24.09, which was below the industry average of 34.03, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

Finally, the company was trading above its Net Current Asset Value (NCAV) of $-13.21. ( See the full valuation )

Stocks to Buy for Enterprise Investors: Hanesbrands Inc. (HBI)

Hanesbrands Inc. ( HBI ) is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, poor dividend history, and the high PEmg and PB ratios. The Enterprising Investor is only concerned with the level of debt relative to the net current assets. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from 46 cents per share in 2012 to an estimated $1.13 for 2016. This level of demonstrated earnings growth outpaces the market's implied estimate of 5.94% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Hanesbrands Inc. revealed the company was trading above its Graham Number of $10.46. The company pays a dividend of 43 cents per share, for a yield of 1.9% Its PEmg (price over earnings per share - ModernGraham) was 20.38, which was below the industry average of 26.26, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

Finally, the company was trading above its Net Current Asset Value (NCAV) of $-6.68. ( See the full valuation )

Stocks to Buy for Enterprise Investors: Gilead Sciences, Inc. (GILD)

Gilead Sciences, Inc. ( GILD ) is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, poor dividend history, and the high PB ratio. The Enterprising Investor is only concerned with the level of debt relative to the net current assets. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $1.61 in 2012 to an estimated $8.69 for 2016. This level of demonstrated earnings growth outpaces the market's implied estimate of 0.72% annual earnings growth over the next 7-10 years.

As a result, the ModernGraham valuation model, based on Benjamin Graham's formula, returns an estimate of intrinsic value above the price. ( See the full valuation )

Stocks to Buy for Enterprise Investors: PPG Industries, Inc. (PPG)

PPG Industries, Inc. ( PPG ) is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, high PB ratio. The Enterprising Investor is only concerned with the level of debt relative to the net current assets. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $2.63 in 2012 to an estimated $6.38 for 2016. This level of demonstrated earnings growth outpaces the market's implied estimate of 3.94% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into PPG Industries, Inc. revealed the company was trading above its Graham Number of $49.66. T

he company pays a dividend of $1.48 per share, for a yield of 1.4% Its PEmg

The post 5 Companies for Enterprising Investors Near 52 Week Lows appeared first on ValueWalk .

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The post 5 Stocks to Buy for Enterprise Investors appeared first on InvestorPlace .

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


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

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