As of Oct. 15, the following stocks look underestimated by the market, as their price-earnings ratios without non-recurring items (NRI) trade below 20 while their price-earnings to growth (PEG) ratios trade near or below 1.
Furthermore, Wall Street sell-side analysts have recommended positive ratings for them, which indicates that these stocks are foreseen to trade higher over the months ahead.
First Horizon Corp
The first company that makes the cut is First Horizon Corp. (FHN, Financial), a Memphis, Tennessee-based regional bank.
As of Oct. 15, the price-earnings ratio without NRI is 7.30, which is more compelling than the industry median of 11.19, while the PEG ratio of 0.78 is more compelling than the industry median of 1.44.
On Oct. 15, the closing price was $16.80 per share. The share price has increased by 60.2% over the past year for a market capitalization of $9.23 billion and a 52-week range of $9.78 to $19.45.
Wall Street sell-side analysts recommend a median rating of overweight and an average target price of $19.50 per share for the stock.
Bank OZK
The second company that matches the criteria is Bank OZK (OZK, Financial), a Little Rock, Arkansas-based regional bank.
As of Oct. 15, the price-earnings ratio without NRI is 10.94, which is more appealing than the industry median of 11.19, while the PEG ratio is 0.77, which has more appeal than the industry median of 1.44.
The closing price on Oct. 15 was $44.52 per share, having increased 104.69% over the past year. The market capitalization is $5.77 billion and the 52-week range is $21.46 to $45.83.
Wall Street sell-side analysts recommend a median rating of overweight for the stock and have established an average target price of $47.90 per share.
Mueller Industries Inc
The third company that holds the criteria is Mueller Industries Inc (MLI, Financial), a Collierville, Tennessee-based manufacturer and seller of metal and plastic products.
As of Oct. 15, the price-earnings ratio without NRI is 9.77, which is more compelling than the industry median of 23.98, while the PEG ratio of 1.03 is also more compelling than the industry median of 2.33.
The closing price on Oct. 15 was $43.36 per share, reflecting a 49.21% increase over the past year for a market capitalization of $2.48 billion and a 52-week range of $27.76 to $48.06.
An analyst on Wall Street recommends one rating of buy for the stock and has established a target price of $100 per share.
Meritor Inc
The fourth stock that qualifies is Meritor Inc (MTOR, Financial), a Troy, Michigan-based manufacturer and seller of vehicle parts to original equipment manufacturers. The company also supplies the aftermarket of commercial vehicles.
As of Oct. 15, the price-earnings ratio without NRI is 13.48, which is more appealing than the industry median of 16.39, while the PEG ratio is 0.65, which has more appeal than the industry median of 1.87.
The closing price on Oct. 15 was $25.85 per share, almost flat compared to the year-ago level. The market capitalization is $1.81 billion and the 52-week range is $20.50 to $33.56.
Wall Street sell-side analysts recommend a median rating of overweight for the stock and have established an average target price of $30.20 per share.
