Here’s my selection of cheap stocks that scored highest in my recent screening – for details see below. Briefly, for each stock from NYSE and NASDAQ for areas were assessed: Valuation (V), Profitability (P), Growth (G) and Health (H); then, the overall score (here: Score) was calculated and what you see below is an ordered list of top stocks.
See also my list of top scoring stocks and stocks with poor fundamentals.
Enjoy and don’t forget to leave a comment!
| # | Ticker | Total | V | P | G | H | Industry | Price per share |
| 1 | CODX | 89.34 | 84.72 | 98.38 | 94.98 | 79.29 | Biotechnology | 11.05 |
| 2 | PRDO | 81.22 | 87.63 | 86.66 | 65.6 | 85.01 | Other Consumer Services | 11.00 |
| 3 | INVA | 80.82 | 79.1 | 95.54 | 81.53 | 67.13 | Pharmaceuticals: Other | 14.62 |
| 4 | SCPL | 80.01 | 82.44 | 75.81 | 78.3 | 83.49 | Packaged Software | 18.68 |
| 5 | CPRX | 77.68 | 72.95 | 93.07 | 70.77 | 73.92 | Pharmaceuticals: Other | 5.37 |
| 6 | PBFX | 77.45 | 59.94 | 97.56 | 97.53 | 54.76 | Oilfield Services/Equipment | 11.51 |
| 7 | CPLP | 77.11 | 80.61 | 86.38 | 73.09 | 68.34 | Marine Shipping | 12.05 |
| 8 | KMDA | 76.64 | 82.36 | 89.51 | 91.48 | 43.2 | Biotechnology | 5.32 |
| 9 | GSKY | 75.0 | 64.01 | 79.55 | 70.22 | 86.23 | Packaged Software | 8.00 |
| 10 | ABCL | 73.44 | 39.31 | 97.8 | 92.64 | 64.02 | Biotechnology | 17.26 |
| 11 | HOLI | 73.25 | 89.17 | 67.54 | 69.9 | 66.37 | Electronic Equipment/Instruments | 19.44 |
| 12 | VNDA | 72.75 | 62.59 | 90.41 | 94.27 | 43.73 | Biotechnology | 16.64 |
| 13 | VIVO | 72.49 | 74.24 | 94.87 | 95.25 | 25.61 | Biotechnology | 19.45 |
| 14 | CODA | 71.39 | 68.15 | 90.28 | 38.25 | 88.89 | Aerospace & Defense | 8.75 |
| 15 | SURF | 71.02 | 81.02 | 92.45 | 66.85 | 43.76 | Biotechnology | 6.09 |
| 16 | RFP | 70.58 | 84.4 | 87.5 | 81.25 | 29.17 | Pulp & Paper | 12.44 |
| 17 | FKWL | 69.8 | 71.3 | 87.99 | 57.17 | 62.74 | Computer Communications | 8.11 |
| 18 | RBBN | 69.17 | 93.62 | 81.57 | 72.77 | 28.74 | Packaged Software | 6.66 |
| 19 | IMMR | 69.03 | 53.22 | 83.7 | 55.88 | 83.33 | Computer Peripherals | 7.39 |
| 20 | LINC | 68.65 | 89.2 | 95.54 | 63.49 | 26.35 | Miscellaneous Commercial Services | 6.34 |
| 21 | IRWD | 68.34 | 55.54 | 98.28 | 81.54 | 38.0 | Pharmaceuticals: Other | 13.13 |
| 22 | CPG | 68.13 | 86.78 | 94.42 | 56.13 | 35.19 | Oil & Gas Production | 3.43 |
| 23 | ASLE | 68.06 | 80.58 | 68.87 | 34.34 | 88.46 | Wholesale Distributors | 13.07 |
| 24 | TRUE | 67.93 | 92.58 | 47.25 | 55.42 | 76.48 | Internet Software/Services | 4.11 |
| 25 | MX | 67.84 | 78.67 | 78.71 | 43.77 | 70.22 | Semiconductors | 18.91 |
| 26 | VYGR | 67.45 | 93.88 | 91.7 | 54.54 | 29.69 | Biotechnology | 3.20 |
| 27 | DLNG | 67.38 | 71.41 | 77.14 | 57.83 | 63.13 | Marine Shipping | 3.00 |
| 28 | EXEL | 67.2 | 43.64 | 88.67 | 92.87 | 43.64 | Biotechnology | 19.20 |
| 29 | SHLX | 67.01 | 30.86 | 91.13 | 53.12 | 92.93 | Oil & Gas Pipelines | 12.01 |
| 30 | LPG | 66.5 | 64.06 | 74.24 | 54.13 | 73.59 | Marine Shipping | 12.66 |
| 31 | VTSI | 66.37 | 82.42 | 81.75 | 24.05 | 77.26 | Industrial Machinery | 7.20 |
| 32 | FLL | 66.23 | 82.22 | 62.01 | 42.28 | 78.43 | Casinos/Gaming | 8.28 |
| 33 | SSRM | 66.12 | 73.66 | 53.18 | 74.28 | 63.34 | Precious Metals | 15.80 |
| 34 | VOXX | 66.05 | 81.0 | 69.24 | 64.56 | 49.4 | Telecommunications Equipment | 10.53 |
| 35 | RIG | 66.03 | 56.88 | 81.82 | 77.28 | 48.15 | Contract Drilling | 3.34 |
| 36 | CTG | 66.03 | 91.6 | 65.51 | 53.72 | 53.31 | Information Technology Services | 8.65 |
| 37 | TPC | 65.96 | 96.5 | 45.54 | 65.6 | 56.19 | Engineering & Construction | 14.16 |
| 38 | PERI | 65.93 | 77.9 | 66.72 | 71.69 | 47.4 | Internet Software/Services | 19.91 |
| 39 | CASA | 65.55 | 68.56 | 82.35 | 64.0 | 47.3 | Packaged Software | 7.19 |
| 40 | ERO | 65.47 | 55.0 | 94.58 | 71.52 | 40.79 | Other Metals/Minerals | 18.51 |
| 41 | HVBT | 65.39 | 45.58 | 98.31 | 41.92 | 75.77 | Information Technology Services | 3.00 |
| 42 | BPMP | 65.34 | 35.22 | 94.58 | 57.81 | 73.74 | Oil & Gas Pipelines | 13.15 |
| 43 | TGNA | 65.29 | 56.29 | 90.16 | 67.55 | 47.16 | Broadcasting | 17.49 |
| 44 | EGY | 65.24 | 66.86 | 82.04 | 50.04 | 62.02 | Oil & Gas Production | 2.40 |
| 45 | TREC | 65.15 | 60.61 | 63.64 | 45.45 | 90.91 | Oil Refining/Marketing | 7.88 |
| 46 | SWI | 64.94 | 83.14 | 71.64 | 79.45 | 25.53 | Packaged Software | 17.48 |
| 47 | ARLP | 64.88 | 81.67 | 82.83 | 53.34 | 41.67 | Coal | 8.18 |
| 48 | NOA | 64.59 | 64.74 | 91.87 | 93.81 | 7.94 | Oilfield Services/Equipment | 13.79 |
| 49 | FTI | 64.54 | 75.73 | 82.94 | 76.47 | 23.02 | Oilfield Services/Equipment | 6.60 |
| 50 | WES | 64.46 | 56.31 | 90.91 | 77.28 | 33.33 | Oil Refining/Marketing | 19.36 |
Methodology
For each stock from NASDAQ and NYSE scores are calculated for each of the following areas:
- Valuation
- Profitability
- Growth
- Health
The scores are calculated using the indicators shown in colored boxes above. For instance, to assess stock’s profitability, Return on Assets (ROA), Return on Equity (ROE) and Net Margin are taken into account. The algorithm looks up the value of ROA in every stock belonging to the same industry and compares it against the analyzed stock, providing a final rank: if there are 20 stocks and 5 of them have higher ROA, then the ROA-associated score is (20-5)/20 * 100 = 75, meaning that the ROA is better than in 75% of stocks. We want ROA to be higher than in the other companies; sometimes, however, we want the indicator’s value to be lower than in peers, as is the case with Price to Book ratio (P/B).
In the next step, the mean score across ROA, ROE and Net Margin is calculated. Similar calculations are done for stock’s Valuation, Growth and Health. The algorithm starts with Valuation score, then it proceeds with Profitability, Growth and Health scores. Finally, the mean value across all four areas of interest are calculated. Of course, kept were only cheap stocks, with price per share below $20.
Disclaimers
- What you see here is my personal opinion and should not be treated as an investing advice
- I’m not an expert stock analyst nor financial advisor
Michał, the Investing Scientist.