Here at GrowYourFunds I like to make it a policy not to have too many of my articles be stock pick related. Some readers certainly like to get some individual ideas though, and we are now in a period where there are a lot of stocks that have been hard hit by the recent market drop. Many individual investors are out there looking for names that may have fallen a bit too far. Today I will provide a list of five stocks I believe have been beaten down to attractive valuation levels.
- The Boeing Company (NYSE:BA) Boeing's stock has been hit hard by the delay of the rollout of its highly anticipated 787 Dreamliner. The stock now trades lower today than it did a year ago, and its growth has far from gone away. The stock currently trades at a PEG Ratio of just 1.11, far below its historical average.
- Kohl's Corporation (NYSE:KSS) Retail is definitely not the place to be right now, and this stock is unlikely to take off anytime soon, but it certainly looks like a good value in the long run. KSS has a history of strong management and higher margins than its competitors, which should help the company once the retailers come back into favor.
- Wachovia Corporation (NYSE:WB) Another sector that is way out of favor right now is the financial sector. Wachovia has traded down with the rest of the big banks, but I believe it has less exposure to the credit market problems than most in the group. Also, CEO Ken Thompson bought 100,000 shares of the stock on Friday, indicating he believes the stock is undervalued. This one has a tremendous dividend yield of 6.5%.
- Unitedhealth Group (NYSE:UNH) This one hasn't been beaten down of late, but it has been a major underperformer over the past two years. The stock traded about 10 points higher two years ago today than it does now. The company is still regarded as a leader in the healthcare sector and has some very impressive profitability ratios. Warren Buffett has been a big buyer of this stock of late, and we don't want to argue with him.
- Manitowoc Company (NYSE:MTW) Manitowoc operates in the capital goods industry and its largest money maker is its line of cranes. Earnings estimates are going higher for the company for both this year and next year, but the stock has been suffering. The stock now trades with a PEG ratio of just 0.69.
These five stocks are ones that I believe investors should take a look at to consider whether they are undervalued at these levels. Note that I see these stocks as long term values, and that given the state of the current market these stocks may well get cheaper before they move higher.
*disclaimer* Please do your own research, do not act on this post alone.
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