Top 7 Most Undervalued Companies Reporting Earnings This Week

Many companies are on this week’s earnings roster - do you have a watchlist prepared?

One idea is to look for the most undervalued stocks relative to the mean analyst target price (used as a proxy for fair value). Although there are usually upward biases to target price, when there is a drastic discount, it begs a second look.



Do you think these stocks are undervalued? Use this list as a starting-off point for your own analysis of this week’s reporting companies.

List sorted by discount from target price.

China Yuchai International Limited (CYD): Diversified Machinery Industry. Market cap of $1.12B. Earnings to be released on 5/11/11. The stock's price is currently 36.40% below its target price (current price at $30.53 vs. target price at $48.00). It's been a rough couple of days for the stock, losing 8.38% over the last week.

MBIA Inc. (MBI): Surety & Title Insurance Industry. Market cap of $1.92B. Earnings to be released on 5/11/11. The stock's price is currently 33.47% below its target price (current price at $9.98 vs. target price at $15.00). The stock is a short squeeze candidate, with a short float at 19.55% (equivalent to 6.67 days of average volume). It's been a rough couple of days for the stock, losing 6.96% over the last week.

Coeur d`Alene Mines Corporation (CDE): Silver Industry. Market cap of $2.43B. Earnings to be released on 5/09/11. The stock's price is currently 32.90% below its target price (current price at $28.08 vs. target price at $41.85). After a solid performance over the last year, CDE has pulled back during recent sessions. The stock is 11.36% below its SMA20 and 13.55% below its SMA50, but remains 15.93% above its SMA200. The stock has performed poorly over the last month, losing 26.04%.

China Real Estate Information Corporation (CRIC): Property Management Industry. Market cap of $1.17B. Earnings to be released today (5/09/11). The stock's price is currently 30.46% below its target price (current price at $8.31 vs. target price at $11.95). The stock is a short squeeze candidate, with a short float at 12.96% (equivalent to 11.94 days of average volume). It's been a rough couple of days for the stock, losing 5.05% over the last week.

Assured Guaranty Ltd. (AGO): Surety & Title Insurance Industry. Market cap of $3.08B. Earnings to be released today (5/09/11). The stock's price is currently 30.25% below its target price (current price at $16.74 vs. target price at $24.00).

6. LDK Solar Co., Ltd. (LDK): Solar Industry. Market cap of $1.47B. Earnings to be released today (5/09/11). The stock's price is currently 30.07% below its target price (current price at $10.35 vs. target price at $14.80). This is a risky stock that is significantly more volatile than the overall market (beta = 2.68). It's been a rough couple of days for the stock, losing 8.87% over the last week.

7. JA Solar Holdings Co., Ltd. (JASO): Solar Industry. Market cap of $1.04B. Earnings to be released on 5/10/11. The stock's price is currently 29.99% below its target price (current price at $6.21 vs. target price at $8.87). This is a risky stock that is significantly more volatile than the overall market (beta = 2.95). It's been a rough couple of days for the stock, losing 5.27% over the last week.

*Target price and all other data sourced from Finviz.


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.