These Stocks May Be Undervalued
The following companies may be undervalued as of March 9, 2020, since their stocks have a price-earnings ratio below 20 and a price-earnings to growth (PEG) ratio below 1.
Furthermore, sell-side analysts on Wall Street have also issued positive recommendation ratings for these securities.
Callaway Golf
The first company that meets these criteria is Callaway Golf Co (NYSE:ELY).
Shares of the Carlsbad, California-based designer, manufacturer and seller of golf clubs, balls, apparel and other products traded at a price of $14.21 per unit at close on Monday for a market capitalization of $1.34 billion.
The price-earnings ratio is 17.54 versus the industry median of 16.19 and the PEG ratio is 0.66 versus the industry median of 1.37.
The stock price has declined 33% so far this year and now trades below the 40-day simple moving average line.
Callaway Golf Co has received a moderate GuruFocus rating of 5 out of 10 for its financial strength and a rating of 6 out of 10 for its profitability.
Wall Street sell-side analysts recommend a buy rating for this stock and have set an average target price of $24.45 per share.
NVR Inc
The second company that meets the above-listed criteria is NVR Inc (NYSE:NVR).
Shares of the Reston, Virginia-based U.S. homebuilder traded at a price of $3,632.35 per unit on Monday for a market capitalization of $13.36 billion.
The price-earnings ratio is 16.42 versus the industry median of 10.22 and the PEG ratio is 0.87 versus the industry median of 0.53.
The share price has declined 5% so far this year to trade significantly below the 40-day simple moving average line.
GuruFocus assigned the company a high financial strength rating of 8 out of 10 and the highest profitability rating of 10 out of 10.
Wall Street sell-side analysts issued a hold recommendation rating for this stock with an average target price of $4,363 per share.
Sleep Number
The third company that meets the above-listed criteria is Sleep Number Corp (NASDAQ:SNBR).
Shares of the Minneapolis, Minnesota-based provider of sleep solutions and services in the U.S. traded at a price of $38.73 at close on Monday for a market capitalization of $1.07 billion.
The price-earnings ratio is 14.34, which is below the industry median of 21.56, and the PEG ratio is 0.77 versus the industry median of 1.19.
The stock price has declined 21% so far this year to trade significantly below the 40-day simple moving average line.
GuruFocus has assigned a low rating of 3 out of 10 for the company's financial strength and a high rating of 9 out of 10 for its profitability.
Wall Street sell-side analysts recommend a hold rating for this stock and have established an average target price of $52 per share.
Disclosure: I have no positions in any securities mentioned.
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This article first appeared on GuruFocus.
