Earn Large Profits By Buying These 3 Undervalued Stocks

Finding companies with the criteria you want isn’t always easy. You could spend hours searching ticker after ticker, only to find companies which aren’t worthy of your hard earned cash. An easier way to navigate through this is by using high quality stock screeners. Screening helps investors narrow down companies to invest in based on their ability to meet every criteria selected. Any company who misses even one of the criteria requirements will be filtered out.

This lets one easily choose ideal metrics. Screens are effective because they sift out bad stocks and only keep the cream of the crop in.It isn’t always easy to create an effective screen. Our Zacks Premium Screens have helped with this, bringing profits to many investors over time. Our predefined criteria are chosen carefully to capture special kinds of companies.

Today, we’ve dug up three growth stocks using one of our premium screens known as “Undervalued Zacks #1 Rank Stocks”. Some of the metrics of this screen requires a stock to have trading volume above 100,000 shares per day, a forward PE under 20, and a Zacks Rank #1 (Strong Buy). One other screening criterion I’ve added is a PEG under one.When a company’s PEG is below this threshold, there is a chance that it is undervalued.   

ARRIS International Plc-(ARRS - Analyst Report)

Arris International is an IP, video, and broadband technology company.It offers video infrastructure, delivery networks, home and business connectivity, devices, and other related products. Arris is a Zacks Rank #1 (Strong Buy) and it has a market cap of $5.3 billion. Earnings are forecasted to grow by 36.7% this year, and the company has a trailing ROE of 19.93%. ARRS shows strong growth potential, and it is promising to see that sales are projected to grow by 41.5% this year.

Arris stock looks cheap across quite a few valuation metrics. Shares trade at a forward PE of 10.81, and its price-to-book ratio is relatively tame at 1.84. Arris’ price to sales is just 0.78, and this exceeds the industry’s average price-to-sales of 1.53 by a notable margin. The corporation is not too leveraged, as it has debt-to-equity of just 0.77. ARRS has a PEG of just 0.62, so it may be undervalued relative to its long term growth rate.   

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Disclosure: None.

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