These Five Stocks Could Be Value Opportunites
In an effort to find some potentially undervalued stocks, Benzinga ran a scan of the mid-cap universe looking for beaten down names that are trading at compelling valuations. Specifically, the stocks had to have market-caps between $2 billion and $10 billion, be down at least 10 percent in 2012, yield over 2 percent, have a price-to-earnings (P/E) ratio below 15 and have a price-to-earnings-growth (PEG) ratio below 1. Below, Benzinga highlights five names that met these metrics.
Assurant (NYSE: AIZ) - This insurance stock has fallen nearly 15 percent in 2012 and currently has a market-cap near $3 billion. The company is a provider of specialized insurance products and related services in North America and select other markets. The stock trades at a trailing P/E of under 6 and a PEG ratio near 0.57. At current levels, AIZ is yielding 2.40 percent.
Cliffs Natural Resources (NYSE: CLF) - This international mining and natural resources stock has been hit hard on global economic slowdown worries. Year-to-date, Cliffs has fallen more than 20 percent. If sentiment were to shift, the stock could see sharp gains. Over the last month, for example, CLF is up almost 6 percent as the market has rallied. At current levels, the stock trades at a trailing P/E of 4.52 and a PEG ratio close to 0.89. CLF shares are currently yielding approximately 5 percent.
GameStop (NYSE: GME) - This stock trades at a very cheap valuation, likely because the market has concerns about the long-term viability of the company's core business. Given the pessimism surrounding the name, however, it could be significantly undervalued at current levels. GME shares trade at a trailing P/E of 7.67 and a PEG ratio of 0.72. In 2012, GME has lost more than 24 percent, thereby pushing up its dividend yield to 3.30 percent.
Marvell Technology (NASDAQ: MRVL) - Among the largest holders of this stock is famed value investor David Einhorn's Greenlight Capital. The shares have lost more than 20 percent in 2012 and the semiconductor stock is currently yielding a little over 2 percent. MRVL trades at a trailing P/E of 11.79 and a PEG ratio of 0.65. With value investors like Einhorn investing in the stock, it may well see strong gains from current levels.
Rockwell Automation (NYSE: ROK) - This company is a global provider of industrial automation power, control and information solutions. Major markets served by the company include food and beverage, transportation, oil and gas, metals, mining, home and personal care, pulp and paper and life sciences. In 2012, ROK shares have lost a little less than 11 percent. At current levels, the stock is yielding nearly 3 percent. Rockwell shares trade at a trailing P/E of around 13 and a PEG ratio of 0.97.
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