What are we looking for?
Forgotten, neglected, deserted stocks.
There is hardly a scrap of information or rumour uttered about companies such as Apple, Google or Facebook, that does not come under the close scrutiny of a legion of analysts and investors.
Each of those stocks has more than 50 analysts tracking them and issuing recommendations.
But buying opportunities can lurk among the equities to which few are paying attention.
How we did it
First, we wanted to limit the search to companies on the TSX or NYSE of a decent size, so we filtered out those with a market capitalization of less than $500-million in local currency, depending on where the stock is listed.
Next, we screened for stocks that are covered by no more than four analysts, which is relatively little attention for companies of that size.
Beyond that, we established some criteria to weed out the duds.
We looked for companies with a decent track records of returns – an average of at least 8 per cent over the last five years.
Dividend yield had to be at least 2 per cent. And of the limited analyst coverage, the consensus rating had to be at least a three on a five-point scale where the higher the number, the more favourable the recommendation.
What we found
Only 21 stocks listed on the Toronto or New York exchanges passed the test. There are just four Canadian names on the list – Canada Bread, Intertape Polymer Group, Corby Spirit and Wine, and Mart Resources.
It’s tough to find common ground among those companies, or among the other names in the screen, but this list may be a starting point to identify some bargains that emerged when nobody was looking.
Be sure to do your own research before investing in any of the stocks shown here.
Stocks largely overlooked by analysts
Follow Tim Shufelt on Twitter: