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3 Growth Stocks Set to Move…and Soon
12/23/2011 8:00 am EST
These three rallying and high-growth stocks are undervalued to their target prices and could be set up for sizable rallies in the weeks ahead.
If you’re looking for stocks with extremely positive outlooks, you might be interested in a list like this.
To create the list below, we started with names that are already proving themselves valuable. We created a universe of rallying stocks. By this we mean all of the stocks are performing above their 20-, 50-, and 200-day moving averages. This signals that the company is rapidly increasing in value and surrounded by positive market sentiment.
In addition, we screened for companies for which Wall Street analysts project rapid earnings growth over the next five years. Specifically, analysts expect earnings per share growth of more than 15%.Searching for Undervalued Stocks
Of course, the investor’s goal should always be to buy into earnings growth at a reasonable price. So we ran an additional screen on the names for share prices trading at significant discounts to analyst target price. This reflects analyst expectations of where the stock is headed within the next year, and if a stock is trading at a steep discount to this number, it may be currently undervalued.
Because target prices are notoriously inflated, it helps to focus on the most pessimistic (the lowest) target prices, as well as those with sufficient analyst coverage of five or more analyst ratings.
Without further adieu, here are the three rallying and high-growth stocks that are undervalued to target price.
Body Central Corp. (BODY) operates as a specialty retailer of young women's apparel and accessories in the South, Mid-Atlantic, and Midwest regions of the United States.
Earnings are projected to grow by 20% over the next five years. The stock is currently trading around 6.55% above the 20-day simple moving average (SMA), 8.28% above the 50-day SMA, and 6.45% above the 200-day SMA. Of the five Wall Street analysts that research the stock, the lowest target price stands at $26.
Mine Safety Appliances Co. (MSA) develops, manufactures, and supplies health and safety products used by workers in the fire service, homeland security, construction, and other industries, as well as the military.
Earnings are projected to grow by 18.25% over the next five years. The stock is currently trading around 0.43% above the 20-day SMA, 3.93% above the 50-day SMA, and 1.42% above the 200-day SMA. Of the five Wall Street analysts that research the stock, the lowest target price stands at $41.
Omnicell Inc. (OMCL) offers automated solutions for hospital medication dispensing and supply management primarily in the United States and Canada.
Earnings are projected to grow by 26.50% over the next five years. The stock is currently trading around 5.03% above the 20-day SMA, 7.29% above the 50-day SMA, and 9.86% above the 200-day SMA. Of the seven Wall Street analysts that research the stock, the lowest target price stands at $19.
By the Staff at Kapitall.com
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