Analyst Small Cap Stock Recommendations
Do you prefer stocks that you can buy at a discount? The price-to-book ratio illustrates a company’s market price as compared to its book value. The ratio measures how much equity investors are willing to pay for each dollar in net assets.
The price/book value ratio, sometimes called the market-to-book ratio is a great price-multiple valuation metric to trace stocks that could be potentially undervalued or overvalued. A ratio less than 1 indicates the stock is being traded below “break up” value or is undervalued and a ratio above 1 is a sign that a stock is overvalued. A lower P/BV Ratio can point to a potentially mispriced stock or indicate that something is fundamentally wrong with it.
The PEG ratio (price/earnings to growth ratio) is a valuation metric to find how expensive a stock is relative to its earnings and expected growth. A lower ratio indicates a cheap stock with higher profit and growth, while a higher ratio indicates the opposite. Peter Lynch, who popularized the ratio, believes a fairly priced stock has a ratio of 1.
In this article we focused on small-cap stocks with trading volume above 1M that look undervalued from a price multiple/valuation perspective. We then narrowed our search by only looking at stocks that Wall Street analysts have rated as ‘Buy’ or have a mean recommendation around 3. We then searched for stocks that are undervalued and have P/BV and PEG below 1.
AAR Corp (NYSE:AIR) is a diversified provider of products and services to the worldwide aviation, government and defense markets. AAR Corp has a price-to-book value of 22.09 and its PEG ratio stands at 0.54. Analysts, on average, have a mean recommendation of 1.80 on this stock.
Air Lease Corp (NYSE:AL) has a price-to-book value of 21.95 and its PEG ratio stands at 0.65. Analysts, on average, have a mean recommendation of 2.10. AL is an aircraft leasing company.
Bill Barrett Corporation (NYSE:BBG) explores and develops oil and natural gas in the Rocky Mountain region of the United States. Bill Barrett Corporation has a price-to-book value of 25.79 and its PEG ratio stands at 0.64. Analysts, on average, have a mean recommendation of 2.20.
Boise Inc (NYSE:BZ) has a price-to-book value of 7.66 and its PEG ratio stands at 0.49. Analysts, on average, have a mean recommendation of 2.00. BZ explores and develops oil and natural gas in the Rocky Mountain region of the United States.
Coeur d’Alene Mines Corporation (NYSE:CDE) is a silver producer with gold production and has assets located in the United States, Mexico, Bolivia, Argentina and Australia. Coeur d’Alene Mines Corporation has a price-to-book value of 23.82 and its PEG ratio stands at 0.42. Analysts, on average, have a mean recommendation of 2.40.
JetBlue Airways Corporation (NASDAQ:JBLU) has a price-to-book value of 6.35 and its PEG ratio stands at 0.55. Analysts, on average, have a mean recommendation of 2.50. JetBlue Airways Corporation is a passenger airline that operates primarily on point-to-point routes with its fleet of 120 Airbus A320 aircraft and 49 EMBRAER 190 aircraft.
NII Holdings, Inc (NASDAQ:NIHD) is a holding company for the operations of Nextel Communications, Inc. in selected international markets. NII Holdings, Inc has a price-to-book value of 19.48 and its PEG ratio stands at 0.94. Analysts, on average, have a mean recommendation of 2.50.
Precision Drilling Corporation (NYSE:PDS) has a price-to-book value of 7.86 and its PEG ratio stands at 0.36. Analysts, on average, have a mean recommendation of 1.80. PDS is a provider of contract drilling and completion and production services primarily to oil and natural gas exploration and production companies in Canada and the United States.
Vishay Intertechnology (NYSE:VSH) is a global manufacturer and supplier of discrete semiconductors and passive components. Vishay Intertechnology has a price-to-book value of 10.58 and its PEG ratio stands at 0.69. Analysts, on average, have a mean recommendation of 2.30.
Disclosure: Opinions expressed in this article are those of the authors alone who have no stake in any stocks mentioned, and do not plan to acquire any stake within the next 72 hours.
