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Fifteen U.S. stocks that mix value and upward momentum Add to ...

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What are we looking for?

Undervalued U.S. companies with sustainable growth and upward momentum.

The screen

Earlier this month, we reviewed the Canadian market in search of upwardly trending but undervalued stocks with room to grow using the EMG (enterprise multiple to growth) ratio. EMG measures valuations relative to growth rates where we’re taking EV/EBITDA (total enterprise value divided by four quarters of earnings before interest, taxes, depreciation and amortization) and dividing by the sustainable growth rate (also known as reinvestment rate).

Undervalued U.S. growers

RankCompanyTickerEMG3m EPS Revision (%)EPS Surprise (%)3m Price Change (%)12m Price Change (%)Yield (%)
1Tyson Foods-ATSN-N0.8610.0%29.2%26.4%67.0%0.9%
2Masco Corp.MAS-N0.111.0%12.4%9.7%30.8%1.2%
3KLA-Tencor Corp.KLAC-Q0.254.9%21.6%4.1%12.0%2.9%
4Goodyear TireGT-Q0.282.6%24.7%1.7%26.3%0.9%
5Scripps Networks-Cl ASNI-N0.273.7%33.5%20.8%-9.1%1.5%
6Citrix SystemsCTXS-Q0.635.4%39.3%3.5%20.8%0.0%
7Avery DennisonAVY-N0.571.4%8.8%12.0%31.7%2.1%
8Motorola SolutionsMSI-N0.412.6%8.2%6.7%8.6%2.3%
9Campbell SoupCPB-N0.485.4%0.0%22.2%40.6%1.9%
10O'Reilly AutomotiveORLY-Q0.352.9%5.2%5.8%25.0%0.0%
11First Solar Inc.FSLR-Q0.790.0%106.7%10.2%20.2%0.0%
12Clorox Co.CLX-N0.120.4%8.9%-0.2%13.9%2.4%
13Hormel Foods Corp.HRL-N1.485.8%16.5%9.7%53.9%1.3%
14Edison Int'lEIX-N1.354.0%47.9%21.2%11.3%2.7%
15Baxter Int'l Inc.BAX-N1.026.0%36.1%9.4%8.3%1.2%

Source: Bloomberg

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