10 Undervalued Stocks with Positive EVA Spread: Investment Idea of the Day

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Today, we have selected 10 undervalued U.S. stocks across sectors which have positive Economic Value Added spread (i.e. difference between return on invested capital & return on cost of capital) and higher return on equity. Moreover, we note that these stocks are trading at relatively low Price to equity and Price to book multiples compared to their industry average. Some these stocks have recorded positive price change during the past three months with average trading volumes of over 100,000.

Company Name

Ticker

Exchange

Sector

Market Cap
($ Mn)

Last Price

Average Volume
(3-month)

Price Change
(3-month)

EVA Spread

BVPS

Return on Equity

P/E Ratio

Sino Agro Foods Inc

SIAF

OTC BB

Consumer Goods

89.5

0.55

483,060

31.3%

19.5%

2.2

29.9%

0.93

Kingold Jewelry Inc

KGJI

NASDAQ

Consumer Goods

87.1

1.32

134,144

10.8%

13.9%

3.7

23.8%

1.69

China Green Agriculture Inc

CGA

NYSE

Basic Materials

74.2

2.33

175,322

-1.3%

2.1%

10.2

11.8%

1.89

ITT Educational Services Inc

ESI

NYSE

Consumer Services

199.8

8.55

807,375

-52.6%

9.9%

8.7

36.0%

3.15

China XD Plastics Co Ltd

CXDC

NASDAQ

Basic Materials

345.6

6.97

534,908

-42.9%

8.9%

9.0

31.9%

3.19

Flagstar Bancorp Inc

FBC

NYSE

Financial

957.7

17.03

142,543

-4.4%

6.2%

19.9

9.5%

3.86

Dehaier Medical Systems Ltd

DHRM

NASDAQ

Healthcare

30.7

5.47

120,265

-16.5%

2.8%

7.5

10.4%

7.70

Atlas Air Worldwide Holdings Inc

AAWW

NASDAQ

Industrial

877.2

34.73

230,989

-7.5%

3.2%

53.7

7.0%

8.76

JinkoSolar Holding Co Ltd

JKS

NYSE

Energy

1,023.8

33.28

1,800,098

34.7%

5.6%

95.1

19.6%

13.41

Phoenix New Media Ltd

FENG

NYSE

Communications

764.2

9.92

377,593

-0.1%

5.1%

22.6

19.5%

15.24

 Source: Bloomberg
Market Cap and Last Price are USD
EVA: Economic Value Added
BVPS: Book Value per Share

Company Description

Sino Agro Foods Inc (OTC BB: SIAF)
Sino Agro Foods, Inc. develops, produces, and distributes organic foods.  The company operates fisheries and dairies, produces capers, and grows sod.

Kingold Jewelry Inc (NASDAQ: KGJI)
Kingold Jewelry Inc., through its subsidiary, designs and manufactures 24K gold jewelry and household ornaments. The Company’s 24k gold jewelry products are sold by weight.

China Green Agriculture Inc (NYSE: CGA)
China Green Agriculture, Inc., through its subsidiaries, produces and distributes humic acid organic liquid compound fertilizer. The company markets its products to wholesalers and retailers of agricultural farm products.

ITT Educational Services Inc (NYSE: ESI)
ITT Educational Services, Inc. provides technology-oriented postsecondary degree programs in the United States.  The company’s institutes offer associate, bachelor, and master degree programs, as well as non-degree diploma programs.

China XD Plastics Co Ltd (NASDAQ: CXDC)
China XD Plastics Company Ltd. manufactures engineering resins.  The resins are used to manufacture exterior and interior automobile parts.

Flagstar Bancorp Inc (NYSE: FBC)
Flagstar Bancorp, Inc. is the holding company for Flagstar Bank, FSB.  The Bank attracts deposits from the general public and originates or acquires residential mortgage loans.  Flagstar also originates consumer, commercial real estate, and non-real estate commercial loans and it operates predominantly in Michigan and Indiana, as well as throughout the United States.

Dehaier Medical Systems Ltd (NASDAQ: DHRM)
Dehaier Medical Systems Limited develops, assemble, and market home respiratory and oxygen homecare products and other medical devices. The company’s products are used in the surgery room, patient room and at home. Dehaier also provides technical service products to manufacturers and distributors.

Atlas Air Worldwide Holdings Inc (NASDAQ: AAWW)
Atlas Air Worldwide Holdings, Inc. is the parent company of Atlas Air, Inc., and Polar Air Cargo, Inc.  Atlas provides aircraft, crew, maintenance, and insurance freighter aircraft to major airlines around the world.  Polar operates a global, scheduled-service network and serves substantially all major trade lanes of the world.  The company also provides commercial and military charter services.

JinkoSolar Holding Co Ltd (NYSE: JKS)
JinkoSolar Holding Company Limited manufactures solar products. The company produces silicon wafers, solar cells and solar modules.

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.

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