Top cheap stocks, based on their valuation, profitability, growth and overall health

Posted on by investing-scientist

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.