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Way Undervalued
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Way Undervalued Mid & Large Cap stocks

I originally planned to post separate groups of Large Cap, Mid Cap, & Small Cap WayUndervalued stocks. Since the number of Large Cap WayUndervalued stocks was small (only 3), I decided to merge the Large & Mid Cap lists.

After analyzing over 1,600 Large & Mid Cap companies, these 10 stocks made the cut as Way Undervalued. Another set of Way Undervalued Large/Mid Cap REIT stocks is available here. Small Cap stocks will be in a later post.

Before we look at the Way Undervalued Mid & Large cap stocks, let's make one thing clear. These stocks were picked using a very one-sided analysis to identify deep value stocks. You should do your own research before plunking any money on these. If you do purchase any of these, don't expect them to go up overnight, next month, etc. You might get lucky buying & selling at just the right time, but short term trading really comes down to luck.

Here they are:

Ticker

P/E Ratio Used

Closing Price on 3/27/14

2014 Estimated Value

2015 Estimated Value

2014 Value Discount

2015 Value Discount

Company Name

QCOR

17.8

62.96

126.02

140.09

100%

123%

Questcor Pharmaceuticals

NCLH

29.0

32.59

65.83

77.72

102%

138%

Norwegian Cruise Line

ALR

29.0

34.63

75.11

86.71

117%

150%

Alere

OI

22.9

32.20

69.85

78.78

117%

145%

Owens-Illinois

ROVI

29.0

22.32

50.17

55.39

125%

148%

Rovi Corporation

MSCC

25.8

24.45

55.47

72.24

127%

195%

Microsemi Corporation

COMM

29.0

23.10

53.07

55.39

130%

140%

CommScope Holding

AAL

21.0

35.77

97.84

113.13

174%

216%

American Airlines Group

OCN

23.2

38.28

110.20

133.63

188%

249%

Ocwen Financial Corporation

PBF*

27.7

25.59

86.82

99.54

239%

289%

PBF Energy*

WayUndervalued Large & Mid Cap stocks

One thing I'd like to see on this list is some lower P/E ratios. But, I stayed with the automatic calculation for all of these and didn't make any manual changes. You'll also notice that a few of these got capped at 29.

I'm particularly fond of American Airlines, mainly because I know what they do! I also had a mortgage serviced by Ocwen for a few years on one of my rental properties. It's interesting seeing a company I'm familiar with show up on the list. It makes one more comfortable purchasing it.

I'll keep an eye on these over the next 12-24 months and post updates for any stocks that get added or removed from the list.

Disclosure: I own AAL, MSCC, and NCLH.

*Correction: PBF is actually a small-cap stock and in the future will be included in the Small Cap Way Undervalued list until the market cap grows beyond $2B.