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Markets edged lower yesterday along with all the major indexes amidst continued election commentary and COVID case spikes. But any situation is an opportunity to invest and this one is no different. Because a down market is perhaps the best time to hunt for growth stocks that have recently been out of reach on valuation considerations.
So today seems to be a good time to highlight undervalued growth stocks to close out another great week for investors-
Lionsgate has evolved as a leading global content provider based on its massive film and television library that has nearly 17,000 titles. The company produces and distributes motion pictures for theatrical as well as straight-to-video release, and television programming. It also has interests in the video game segment, particularly in esports.
Zacks Rank 2 (Buy)
Industry: Film and Television Production and Distribution (Top 37% of 250+ Zacks classified industries, the top 50% generally outperforms the bottom 50% by a factor of more than 2 to 1)
Growth Score A
The Zacks Consensus Estimate for fiscal 2021 (ending March) went from 48 cents to 36 cents and then up to 55 cents in the last 90 days.
The 2022 estimate went from 75 cents to 72 cents then up to 97 cents.
Valuation: On the basis of price-to-forward 12 months’ earnings (P/E), the current value of 11.76X is below the median value of 11.79X over the past year while the S&P 500 is at its annual high. The price-to-book value (P/B) of 0.63 also suggests that the shares are undervalued.
Telephone and Data Systems is a diversified telecom service provider offering wireless and wireline services in 36 states. The company owns 83% of U.S. Cellular, the seventh largest wireless operator in the United States on the basis of number of subscribers. It serves 4.68 million customers.
Zacks Rank 2 (Buy)
Industry: Wireline – National (Top 2% of 250+ Zacks classified industries)
Growth Score A
The Zacks Consensus Estimate for fiscal 2020 (ending December) went from 91 cents to 79 cents before moving back up to 96 cents in the last 90 days.
The 2021 estimate went from 90 cents to 82 cents, then up to $1.09.
Valuation: The current P/E value of 19.38X is below the median value of 23.13X over the past year. The price-to-book value (P/B) of 0.42 also suggests that the shares are undervalued.
Dublin, Ireland-based Adient plc is one of the world’s largest automotive seating systems and components for passenger cars, commercial vehicles and light trucks including vans pickups and SUVs. Created after the separation of the automotive seating and interiors business of Johnson Controls International plc, Adient now maintains relationships with the largest global auto manufacturers. The company’s technologies extend to virtually every area of automotive seating solutions.
Zacks Rank 2 (Buy)
Industry: Automotive - Original Equipment (Top 28% of 250+ Zacks classified industries)
Growth Score A
The Zacks Consensus Estimate for fiscal 2020 (ending September) dropped from 43 cents to 63 cents in the last 90 days.
The 2021 estimate went from $1.63 to $1.76.
Valuation: The current P/E value of 13.09X is close to the median value of 11.86X over the past year. The price-to-book value (P/B) of 0.84 suggests that the shares are undervalued.
New Residential Investment Corp.
New Residential Investment Corp. is a real estate investment trust (REIT) engaged in investment and management of residential real estate investments like excess mortgage servicing rights, residential mortgage backed securities and residential mortgage loans.
Zacks Rank 2 (Buy)
Industry: REIT and Equity Trust (Top 36% of 250+ Zacks classified industries)
Growth Score A
The Zacks Consensus Estimate for fiscal 2020 (ending December) moved up a couple of cents to $1.22 in the last 90 days.
The 2021 estimate went from $1.57 to $1.30, remaining above 2020 levels.
Valuation: The current P/E value of 5.15X is below the median value of 6.95X over the past year. The price-to-book value (P/B) of 0.63 also suggests that the shares are undervalued.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Searching for Growth in a Down Market
Markets edged lower yesterday along with all the major indexes amidst continued election commentary and COVID case spikes. But any situation is an opportunity to invest and this one is no different. Because a down market is perhaps the best time to hunt for growth stocks that have recently been out of reach on valuation considerations.
So today seems to be a good time to highlight undervalued growth stocks to close out another great week for investors-
Lions Gate Entertainment Corp. (LGF.A - Free Report)
Lionsgate has evolved as a leading global content provider based on its massive film and television library that has nearly 17,000 titles. The company produces and distributes motion pictures for theatrical as well as straight-to-video release, and television programming. It also has interests in the video game segment, particularly in esports.
Zacks Rank 2 (Buy)
Industry: Film and Television Production and Distribution (Top 37% of 250+ Zacks classified industries, the top 50% generally outperforms the bottom 50% by a factor of more than 2 to 1)
Growth Score A
The Zacks Consensus Estimate for fiscal 2021 (ending March) went from 48 cents to 36 cents and then up to 55 cents in the last 90 days.
The 2022 estimate went from 75 cents to 72 cents then up to 97 cents.
Valuation: On the basis of price-to-forward 12 months’ earnings (P/E), the current value of 11.76X is below the median value of 11.79X over the past year while the S&P 500 is at its annual high. The price-to-book value (P/B) of 0.63 also suggests that the shares are undervalued.
Telephone and Data Systems, Inc. (TDS - Free Report)
Telephone and Data Systems is a diversified telecom service provider offering wireless and wireline services in 36 states. The company owns 83% of U.S. Cellular, the seventh largest wireless operator in the United States on the basis of number of subscribers. It serves 4.68 million customers.
Zacks Rank 2 (Buy)
Industry: Wireline – National (Top 2% of 250+ Zacks classified industries)
Growth Score A
The Zacks Consensus Estimate for fiscal 2020 (ending December) went from 91 cents to 79 cents before moving back up to 96 cents in the last 90 days.
The 2021 estimate went from 90 cents to 82 cents, then up to $1.09.
Valuation: The current P/E value of 19.38X is below the median value of 23.13X over the past year. The price-to-book value (P/B) of 0.42 also suggests that the shares are undervalued.
Adient plc (ADNT - Free Report)
Dublin, Ireland-based Adient plc is one of the world’s largest automotive seating systems and components for passenger cars, commercial vehicles and light trucks including vans pickups and SUVs. Created after the separation of the automotive seating and interiors business of Johnson Controls International plc, Adient now maintains relationships with the largest global auto manufacturers. The company’s technologies extend to virtually every area of automotive seating solutions.
Zacks Rank 2 (Buy)
Industry: Automotive - Original Equipment (Top 28% of 250+ Zacks classified industries)
Growth Score A
The Zacks Consensus Estimate for fiscal 2020 (ending September) dropped from 43 cents to 63 cents in the last 90 days.
The 2021 estimate went from $1.63 to $1.76.
Valuation: The current P/E value of 13.09X is close to the median value of 11.86X over the past year. The price-to-book value (P/B) of 0.84 suggests that the shares are undervalued.
New Residential Investment Corp.
New Residential Investment Corp. is a real estate investment trust (REIT) engaged in investment and management of residential real estate investments like excess mortgage servicing rights, residential mortgage backed securities and residential mortgage loans.
Zacks Rank 2 (Buy)
Industry: REIT and Equity Trust (Top 36% of 250+ Zacks classified industries)
Growth Score A
The Zacks Consensus Estimate for fiscal 2020 (ending December) moved up a couple of cents to $1.22 in the last 90 days.
The 2021 estimate went from $1.57 to $1.30, remaining above 2020 levels.
Valuation: The current P/E value of 5.15X is below the median value of 6.95X over the past year. The price-to-book value (P/B) of 0.63 also suggests that the shares are undervalued.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>