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Finding companies with the criteria you want isn’t always easy. You could spend hours searching ticker after ticker, only to find companies which aren’t worthy of your hard earned cash. An easier way to navigate through this is by using high quality stock screeners. Screening helps investors narrow down companies to invest in based on their ability to meet every criteria selected. Any company who misses even one of the criteria requirements will be filtered out.
This lets one easily choose ideal metrics. Screens are effective because they sift out bad stocks and only keep the cream of the crop in. It isn’t always easy to create an effective screen. Our Zacks Premium Screens have helped with this, bringing profits to many investors over time. Our predefined criteria are chosen carefully to capture special kinds of companies.
Today, we’ve dug up three undervalued stocks using one of our premium screens known as “PEG”. Some of the metrics of this screen requires a stock to have a Zacks Rank #2 (Buy) and a PEG under 0.55. One other screening criterion I’ve added to the screen is an expected growth rate of 10% or higher for EPS this year.
Ternium is the leading steel company in Latin America and it produces flat and long steel products. The corporation has production centers in Argentina, Mexico, Guatemala, Colombia, and the US. Ternium is a Zacks Rank #2 (Buy) and it gets a score of “A” in all three of our Style Scores categories (growth, value, and momentum). It’s worth noting that the company doles out a dividend yield of 4.42%.
Ternium looks like a bargain across quite a few valuation metrics. For one, the company has a PEG of 0.34. A PEG under one suggests that value is present, so it is encouraging to see that TX has such a low price relative to its expected growth rate. The stock also trades at a price-to-book of 0.87, and this indicates that shares could be undervalued right now. Ternium’s earnings are forecasted to grow by a whopping 148.42% this year. It also has a nice capital structure, with debt-to-capital coming in at just 9.5%.
Motorcar Parts of America Inc. manufactures and replaces alternators and starters for domestic and foreign cars and light trucks in the US and Canada. The company is also one of the largest suppliers of underhood and undercar products in North America. Motorcar Parts is a Zacks Rank #1 (Strong Buy) and it has a market cap of $523.5 million.
The company trades at a forward PE of 12.14, so it looks pretty cheap right off the bat. However, MPAA also boasts a PEG of 0.53, so the corporation looks like it could be severely undervalued relative to its long term growth rate. Sales are expected to increase by 16.87% this year and EPS is projected to grow by 16.3%. Like Ternium, Motorcar Parts of America has a sound balance sheet, with debt-to-capitalof just 8%. MPAA has been making a comeback over the last few years, and since fiscal 2014, sales have grown by 42.4%.
Green Plains Partners LP is a fee-based, limited partnership that was formed by its parent company Green plains Inc. (GPRE - Free Report) . The company provides ethanol and fuel storage, terminal, and transportation services. GPP is a Zacks Rank #1 (Strong Buy) and it has a grade of “A” for Momentum. Green Plains Partners could be a great income stock since it doles out a generous 9.12% dividend yield.
Green Plains is more leveraged than the other two investment candidates in this article, but it does make a case as to why it could be a great bargain right now. In addition to its low forward PE of 10.53, GPP also has an attractive PEG of just 0.39. This year, revenues and earnings are projected to grow by 98.35% and 135.6% respectively. In recent history, Green Plains Partners has been quite profitable, posting a trailing twelve month net margin of 52.6%.
One magical screening ingredient which can’t be overlooked is a Zacks Rank #2 (Buy) or better. The rank helps to find companies which look like dependable earnings candidates. In addition to this great metric, the Zacks Premium Screenshelp you to add other criteria to find the most superior investment choices. While this article outlined potential candidates from one screen, the Zacks Premium service gives you access to the PEG screen and 45 other premium screens designed to give you superior investment returns.
To use Zacks Premium Screens to find more stock picks based on criteria that’s most important to you— plus, gain access to the Zacks Rank for your stocks, mutual funds and ETFs; Zacks Style Scores, Equity Research Reports; Focus List portfolio of 50-longer-term stocks and more—start your 30-day free trial to Zacks Premium.
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3 Undervalued Stocks with High Growth Potential
Finding companies with the criteria you want isn’t always easy. You could spend hours searching ticker after ticker, only to find companies which aren’t worthy of your hard earned cash. An easier way to navigate through this is by using high quality stock screeners. Screening helps investors narrow down companies to invest in based on their ability to meet every criteria selected. Any company who misses even one of the criteria requirements will be filtered out.
This lets one easily choose ideal metrics. Screens are effective because they sift out bad stocks and only keep the cream of the crop in. It isn’t always easy to create an effective screen. Our Zacks Premium Screens have helped with this, bringing profits to many investors over time. Our predefined criteria are chosen carefully to capture special kinds of companies.
Today, we’ve dug up three undervalued stocks using one of our premium screens known as “PEG”. Some of the metrics of this screen requires a stock to have a Zacks Rank #2 (Buy) and a PEG under 0.55. One other screening criterion I’ve added to the screen is an expected growth rate of 10% or higher for EPS this year.
Ternium SA-(TX - Free Report)
Ternium is the leading steel company in Latin America and it produces flat and long steel products. The corporation has production centers in Argentina, Mexico, Guatemala, Colombia, and the US. Ternium is a Zacks Rank #2 (Buy) and it gets a score of “A” in all three of our Style Scores categories (growth, value, and momentum). It’s worth noting that the company doles out a dividend yield of 4.42%.
Ternium looks like a bargain across quite a few valuation metrics. For one, the company has a PEG of 0.34. A PEG under one suggests that value is present, so it is encouraging to see that TX has such a low price relative to its expected growth rate. The stock also trades at a price-to-book of 0.87, and this indicates that shares could be undervalued right now. Ternium’s earnings are forecasted to grow by a whopping 148.42% this year. It also has a nice capital structure, with debt-to-capital coming in at just 9.5%.
TERNIUM SA-ADR Price and EPS Surprise
TERNIUM SA-ADR Price and EPS Surprise | TERNIUM SA-ADR Quote
Motorcar Parts of America Inc-(MPAA - Free Report)
Motorcar Parts of America Inc. manufactures and replaces alternators and starters for domestic and foreign cars and light trucks in the US and Canada. The company is also one of the largest suppliers of underhood and undercar products in North America. Motorcar Parts is a Zacks Rank #1 (Strong Buy) and it has a market cap of $523.5 million.
The company trades at a forward PE of 12.14, so it looks pretty cheap right off the bat. However, MPAA also boasts a PEG of 0.53, so the corporation looks like it could be severely undervalued relative to its long term growth rate. Sales are expected to increase by 16.87% this year and EPS is projected to grow by 16.3%. Like Ternium, Motorcar Parts of America has a sound balance sheet, with debt-to-capitalof just 8%. MPAA has been making a comeback over the last few years, and since fiscal 2014, sales have grown by 42.4%.
MOTORCAR PARTS Revenue (TTM)
MOTORCAR PARTS Revenue (TTM) | MOTORCAR PARTS Quote
Green Plains Partners LP-
Green Plains Partners LP is a fee-based, limited partnership that was formed by its parent company Green plains Inc. (GPRE - Free Report) . The company provides ethanol and fuel storage, terminal, and transportation services. GPP is a Zacks Rank #1 (Strong Buy) and it has a grade of “A” for Momentum. Green Plains Partners could be a great income stock since it doles out a generous 9.12% dividend yield.
Green Plains is more leveraged than the other two investment candidates in this article, but it does make a case as to why it could be a great bargain right now. In addition to its low forward PE of 10.53, GPP also has an attractive PEG of just 0.39. This year, revenues and earnings are projected to grow by 98.35% and 135.6% respectively. In recent history, Green Plains Partners has been quite profitable, posting a trailing twelve month net margin of 52.6%.
GREEN PLAIN PTR Price, Consensus and EPS Surprise
GREEN PLAIN PTR Price, Consensus and EPS Surprise | GREEN PLAIN PTR Quote
Bottom Line
One magical screening ingredient which can’t be overlooked is a Zacks Rank #2 (Buy) or better. The rank helps to find companies which look like dependable earnings candidates. In addition to this great metric, the Zacks Premium Screenshelp you to add other criteria to find the most superior investment choices. While this article outlined potential candidates from one screen, the Zacks Premium service gives you access to the PEG screen and 45 other premium screens designed to give you superior investment returns.
To use Zacks Premium Screens to find more stock picks based on criteria that’s most important to you— plus, gain access to the Zacks Rank for your stocks, mutual funds and ETFs; Zacks Style Scores, Equity Research Reports; Focus List portfolio of 50-longer-term stocks and more—start your 30-day free trial to Zacks Premium.