Stocks
Way Undervalued
  Finding undervalued stocks

Undervalued Large Cap stocks

Welcome to the first release of Undervalued companies.  Make sure to also check out the Way Undervalued Large Cap Picks.  The companies below didn't make the cut as Way Undervalued, which means the 2014 value discount isn't 100% or higher.  Instead, it includes companies that are at least 50% undervalued based on the 2014 value estimate.  Don't be fooled though.  If you are a value investor, the companies below are undervalued and worth considering.

You could argue that some of the 19 companies listed below are safer investments compared to some of the companies in my last post for small cap WayUndervalued stocks.  There's also a wider selection to choose from below than the WayUndervalued Large Cap stocks.  There are definitely more familiar names to pick from.  Here's the list:

Ticker P/E Ratio Used Closing Price on 3/28/14 2014 Value Estimate 2015 Value Estimate 2014 Value Discount 2015 Value Discount Company Name
WFT 25.3 $16.98 $25.76 $39.14 52% 130% Weatherford International
MHK 24.8 $133.39 $203.94 $243.05 53% 82% Mohawk Industries
BAC 20.6 $17.01 $26.74 $33.32 57% 96% Bank of America Corporation
BG 18.0 $78.23 $127.08 $140.78 62% 80% Bunge Limited
CTL 21.7 $32.59 $55.62 $55.18 71% 69% CenturyLink
NTAP 22.9 $36.26 $62.66 $68.61 73% 89% NetApp
ACT 27.0 $202.87 $351.16 $393.47 73% 94% Actavis
MYL 24.4 $48.58 $84.25 $94.02 73% 94% Mylan
MBT 15.8 $17.04 $29.57 $31.69 74% 86% Mobile TeleSystems OJSC
JNPR 28.4 $25.33 $44.02 $53.68 74% 112% Juniper Networks
TEVA 19.2 $49.14 $87.54 $86.96 78% 77% Teva Pharmaceutical Industries
SYMC 19.3 $19.27 $35.97 $35.59 87% 85% Symantec Corporation
NXPI 25.8 $57.26 $107.84 $122.55 88% 114% NXP Semiconductors N.V.
CS 14.8 $31.28 $52.88 $60.85 89% 118% Credit Suisse Group
BRCM 23.7 $30.86 $58.38 $65.02 89% 111% Broadcom Corporation
UAL 19.4 $43.89 $83.03 $109.22 89% 149% United Continental Holdings
MET 17.8 $52.36 $101.32 $108.78 94% 108% MetLife
HTZ 25.4 $25.61 $50.04 $62.23 95% 143% Hertz Global Holdings
BCS 14.1 $15.41 $37.55 $48.37 99% 169% Barclays PLC

 

There are some attractive P/E ratios in this list of undervalued companies.  Note that the lowest P/E ratio of 14.1 is also tied to the highest ranked stock in the list: Barclays.  This stock might as well be Way Undervalued, but the line has to be drawn somewhere.  Broadcom, Metlife, United Continental Airlines, and Hertz are also appealing at the top of the list.

Barclays is not only at the top of the list, it has a nice 5.7% dividend to go along with it, and the current dividend is only half the expected 2014 earnings.  CenturyLink also has a killer 6.6% dividend, however that dividend will consume most of the companies expected earnings in 2014.

You'll remember Broadcom from the list of Way Undervalued picks from 2013.  It has lost Way Undervalued status since last year due to a slightly lower P/E ratio used in the calculation, but I wouldn't turn your back on Broadcom just yet.  The main issue with BRCM is that it's GAAP earnings are low.  But, it's non-GAAP earnings have been stellar.  If the company continues to release earnings with a large gap between the GAAP & non-GAAP numbers, the stock price could continue to struggle.  But if Broadcom's large one-time charges are reduced or disappear, you could see value investors pile on and the stock price move back up.

Of the stocks above, I own BCS, BRCM, and NTAP.