10 Stocks in Rally Mode That Seem Undervalued

Jesse Livermore, the legendary trader from the 1920s, once said that "stocks are never too high for you to begin buying or too low to begin selling." In other words, just because a stock has been rallying, it doesn't mean that you have missed the boat.

For today's article, we're focusing on the stocks that have rallied over recent months, and remain undervalued according to the trailing-12-month price-to-earnings and price-to-free cash flow ratios.

All of these stocks are trading above their 20-day, 50-day and 200-day moving averages, and have gained more than 30% over the past year. Despite this outperformance over the last year, most of these stocks remain undervalued on a P/E and P/FCF basis when compared to their competitors.

Treat this list as a starting point for your own analysis. For each stock, we'll compare the company's trailing-12-month valuation ratios to its industry. All data sourced from Reuters.com.

Company

P/E

P/E - Industry

P/FCF - Industry

P/FCF - Industry

Performance (Year)

Hansen Natural (Nasdaq: HANS  )

21.36

27.11

18.33

23.47

40.79%

Hospira (NYSE: HSP  )

20.58

21.81

13.49

30.29

37.63%

Coca-Cola FEMSA (NYSE: KOF  )

19.39

27.11

12.1

23.47

73.10%

Lexmark International (NYSE: LXK  )

12.13

12.71

6.46

25.46

95.06%

Newmont Mining (NYSE: NEM  )

18.22

61.84

16.49

23.46

35.80%

NBTY (NYSE: NTY  )

13.87

21.81

12.61

30.29

45.68%

Oil States International (NYSE: OIS  )

15.53

16.98

18.18

18.66

41.16%

Seaboard (NYSE: SEB  )

10.86

23.88

9.43

14.7

48.61%

Teck Resources (NYSE: TCK  )

10.59

29.44

11.06

12.35

48.90%

Valeant Pharma (NYSE: VRX  )

20.84

21.81

23.04

30.29

144.57%

Interactive Chart: Compare analyst ratings and market caps for all the stocks mentioned above. To access an interactive chart of all these companies, click here.


Kapitall's Eben Esterhuizen, CFA, does not own shares of any companies mentioned.

Hansen Natural is a Motley Fool Rule Breakers pick. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool has a disclosure policy.


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