Today, we have shortlisted 12 stocks across sectors which appear to be undervalued as depicted by their positive equity alpha (i.e. the excess return of the stock relative to the return of the benchmark index, suggesting the stock is undervalued). Moreover, these stocks are expected to report low price to earnings (P/E) and high return on equity (ROE) for fiscal year 2014. During the past three months, some of these stocks have registered price gains with daily average trading volumes in excess of 100,000.
|
Company Name |
Ticker |
Exchange |
Sector |
Market Cap |
Last Price |
Average Volume |
Price Change |
Equity Alpha* |
P/E 2014(E) |
ROE 2014(E) |
|
Canadian Solar Inc |
CSIQ |
NASDAQ |
Industrial |
1,918.5 |
35.77 |
3,548,562 |
16.4% |
2.1% |
9.8 |
37.7% |
|
JinkoSolar Holding Co Ltd |
JKS |
NYSE |
Energy |
845.7 |
27.49 |
1,938,330 |
-8.6% |
1.8% |
10.8 |
21.8% |
|
Arotech Corp |
ARTX |
NASDAQ |
Industrial |
79.0 |
3.25 |
523,052 |
-27.5% |
1.8% |
8.6 |
17.2% |
|
REX American Resources Corp |
REX |
NYSE |
Energy |
596.3 |
72.88 |
224,897 |
-4.5% |
1.3% |
7.8 |
12.2% |
|
Federated National Holding Co |
FNHC |
NASDAQ |
Financial |
387.8 |
28.09 |
227,789 |
10.8% |
1.3% |
12.1 |
20.6% |
|
RF Micro Devices Inc |
RFMD |
NASDAQ |
Communications |
3,319.2 |
11.54 |
10,928,037 |
16.8% |
1.0% |
11.5 |
35.1% |
|
Gray Television Inc |
GTN |
NYSE |
Communications |
451.2 |
7.88 |
538,718 |
-40.8% |
1.0% |
8.6 |
25.0% |
|
Entravision Communications Corp |
EVC |
NYSE |
Communications |
353.8 |
3.96 |
590,778 |
-38.3% |
0.9% |
11.6 |
22.6% |
|
BofI Holding Inc |
BOFI |
NASDAQ |
Financial |
1,055.1 |
72.71 |
241,423 |
-4.2% |
0.9% |
14.0 |
18.9% |
|
Alliance Fiber Optic Products Inc |
AFOP |
NASDAQ |
Communications |
231.4 |
12.43 |
529,305 |
-32.4% |
0.9% |
10.0 |
25.9% |
|
Inteliquent Inc |
IQNT |
NASDAQ |
Communications |
412.2 |
12.45 |
408,228 |
-14.6% |
0.9% |
12.7 |
23.9% |
|
Phoenix New Media Ltd |
FENG |
NYSE |
Communications |
720.3 |
9.35 |
370,169 |
-14.8% |
0.9% |
13.5 |
17.7% |
Source: Bloomberg;
*Equity Alpha: Excess return of the stock relative to the return of the benchmark index
Company Description
Canadian Solar Inc (NASDAQ: CSIQ)
Canadian Solar Inc. designs, manufactures, and sells solar module products that convert sunlight into electricity for a variety of uses. The company’s products include a range of standard solar modules for use in a wide range of residential, commercial, and industrial solar power generation systems.
JinkoSolar Holding Co Ltd (NYSE: JKS)
JinkoSolar Holding Company Limited manufactures solar products. The company produces silicon wafers, solar cells and solar modules.
Arotech Corp (NASDAQ: ARTX)
Arotech Corporation provides defense and security products for the military, law enforcement and homeland security markets, including advanced zinc-air batteries, multimedia interactive simulators/trainers and lightweight armoring.
REX American Resources Corp (NYSE: REX)
REX American Resources Corporation is invested in ethanol production entities. The company produces ethanol, and dried and modified distillers grains, as well as leases real estate properties.
Federated National Holding Co (NASDAQ: FNHC)
Federated National Holding Company, through its subsidiaries, is involved in insurance underwriting, distribution, and claims processing. The company underwrites nonstandard and standard personal automobile insurance and mobile home property and casualty insurance in Florida. Federated also offers premium financing to its own and third-party insureds.
RF Micro Devices Inc (NASDAQ: RFMD)
RF Micro Devices, Inc. designs, develops, and markets proprietary radio frequency integrated circuits. The company’s products are used for wireless communications applications such as cellular and PCS, cordless telephony, wireless LANs, wireless local loop, industrial radios, wireless security and remote meter reading.
Gray Television Inc (NYSE: GTN)
Gray Television, Inc. operates television stations. The company operates in the southern, midwestern, and southwestern United States.
Entravision Communications Corp (NYSE: EVC)
Entravision Communications Corporation, a diversified media company, conducts television, radio, outdoor, and publishing operations. The company’s operations are geared towards Hispanic consumers in the United States.
BofI Holding Inc (NASDAQ: BOFI)
BofI Holding, Inc. is the holding company for Bank of Internet USA. The Bank is a consumer focused nationwide savings bank that operates primarily through the Internet from a single location in San Diego, California.
Alliance Fiber Optic Products Inc (NASDAQ: AFOP)
Alliance Fiber Optic Products, Inc. designs, manufactures, and markets a variety of high performance fiber optic components and modular solutions for leading and emerging communications equipment manufacturers. The company offers a broad product line of passive optical components including interconnect systems and couplers and splitters.
Inteliquent Inc (NASDAQ: IQNT)
Inteliquent, Inc. provides tandem interconnection services. The company provides its services to carriers and service providers, including wireless, wireline, cable telephony and Voice over Internet Protocol companies.
Phoenix New Media Ltd (NYSE: FENG)
Phoenix New Media Ltd. is a new media company that provides premium content on an integrated platform across Internet, mobile and TV channels in China. The company enables consumers to access professional news and other information and share user-generated content on the Internet and through their mobile devices.
