Momentum Ideas: 15 Potentially Undervalued Stocks in Rally Mode

If you're looking for momentum ideas, the following list might offer an interesting starting point.

Below is a list of 16 stocks that are undervalued to their industry peers on two different price multiples: PEG and MRQ P/CF. These stocks are also rallying above their 20-day, 50-day, and 200-day moving averages.

Do you think these stocks have more upside momentum? Full details below.



List sorted by market cap.

1. Exxon Mobil Corp. (XOM): Major Integrated Oil & Gas Industry. Market cap of $417.17B. The stock is currently 1.44% above its 20-day moving average, 1.78% above its 50-day MA, and 21.90% above its 200-day MA. PEG ratio at 1.28 vs. industry average of 2.96. MRQ P/CF at 7.78 vs. industry average of 8.77. The stock has gained 27.64% over the last year.

2. The Dow Chemical Company (DOW): Chemicals Industry. Market cap of $44.09B. The stock is currently 2.73% above its 20-day moving average, 3.18% above its 50-day MA, and 22.91% above its 200-day MA. PEG ratio at 3.08 vs. industry average of 3.66. MRQ P/CF at 8.78 vs. industry average of 14.96. Note that this is a risky stock that is significantly more volatile than the overall market (beta = 2.25). The stock has gained 27.02% over the last year.

3. Marathon Oil Corporation (MRO): Oil & Gas Refining & Marketing Industry. Market cap of $37.90B. The stock is currently 5.23% above its 20-day moving average, 10.69% above its 50-day MA, and 43.19% above its 200-day MA. PEG ratio at 1.61 vs. industry average of 2.96. MRQ P/CF at 5.83 vs. industry average of 8.77. The stock has had a couple of great days, gaining 5.09% over the last week.

4. PPG Industries Inc. (PPG): Specialty Chemicals Industry. Market cap of $15.33B. The stock is currently 7.56% above its 20-day moving average, 9.61% above its 50-day MA, and 25.34% above its 200-day MA. PEG ratio at 1.73 vs. industry average of 3.66. MRQ P/CF at 11.91 vs. industry average of 14.96. The stock has gained 7.36% over the last week.

5. CIGNA Corporation (CI): Health Care Plans Industry. Market cap of $12.01B. The stock is currently 3.72% above its 20-day moving average, 4.52% above its 50-day MA, and 20.39% above its 200-day MA. PEG ratio at 1.1 vs. industry average of 1.13. MRQ P/CF at 5.39 vs. industry average of 11.98. The stock has gained 19.29% over the last year.

6. ITT Corporation (ITT): Diversified Machinery Industry. Market cap of $11.03B. The stock is currently 4.89% above its 20-day moving average, 3.39% above its 50-day MA, and 20.05% above its 200-day MA. PEG ratio at 1.71 vs. industry average of 1.75. MRQ P/CF at 7.73 vs. industry average of 17.47. The stock has gained 13.6% over the last year.

7. Lam Research Corporation (LRCX): Semiconductor Equipment & Materials Industry. Market cap of $7.0B. The stock is currently 4.97% above its 20-day moving average, 6.06% above its 50-day MA, and 23.36% above its 200-day MA. PEG ratio at 1.06 vs. industry average of 1.26. MRQ P/CF at 7.3 vs. industry average of 12.35. The stock has gained 51.05% over the last year.

8. Fossil, Inc. (FOSL): Recreational Goods Industry. Market cap of $5.99B. The stock is currently 11.58% above its 20-day moving average, 19.09% above its 50-day MA, and 54.66% above its 200-day MA. PEG ratio at 1.23 vs. industry average of 1.94. MRQ P/CF at 13.85 vs. industry average of 19.71. The stock has had a couple of great days, gaining 9.51% over the last week.

9. Albemarle Corp. (ALB): Synthetics Industry. Market cap of $5.48B. The stock is currently 6.46% above its 20-day moving average, 5.34% above its 50-day MA, and 20.16% above its 200-day MA. PEG ratio at 2.04 vs. industry average of 3.66. MRQ P/CF at 12.47 vs. industry average of 14.96. The stock has gained 5.66% over the last week.

10. Timken Co. (TKR): Machine Tools & Accessories Industry. Market cap of $5.14B. The stock is currently 7.06% above its 20-day moving average, 6.06% above its 50-day MA, and 27.11% above its 200-day MA. PEG ratio at 1.34 vs. industry average of 1.58. MRQ P/CF at 9.4 vs. industry average of 11.24. The stock has had a good month, gaining 10.5%.

11. Smithfield Foods Inc. (SFD): Meat Products Industry. Market cap of $4.0B. The stock is currently 5.28% above its 20-day moving average, 8.39% above its 50-day MA, and 32.64% above its 200-day MA. PEG ratio at 1.09 vs. industry average of 2.15. MRQ P/CF at 3.91 vs. industry average of 15.69. The stock has gained 15.84% over the last year.

12. Reinsurance Group of America Inc. (RGA): Life Insurance Industry. Market cap of $3.91B. The stock is currently 3.39% above its 20-day moving average, 4.57% above its 50-day MA, and 20.80% above its 200-day MA. PEG ratio at 0.56 vs. industry average of 0.83. MRQ P/CF at 5.84 vs. industry average of 17.49. RGA has a relatively low correlation to the market (beta = 0.62), which may be appealing to risk-averse investors. The stock has gained 20.08% over the last year.

13. Rockwood Holdings Inc. (ROC): Specialty Chemicals Industry. Market cap of $3.75B. The stock is currently 3.53% above its 20-day moving average, 9.77% above its 50-day MA, and 38.60% above its 200-day MA. PEG ratio at 0.5 vs. industry average of 3.66. MRQ P/CF at 5.4 vs. industry average of 14.96. The stock has gained 80.96% over the last year.

14. Deckers Outdoor Corp. (DECK): Apparel Footwear & Accessories Industry. Market cap of $3.32B. The stock is currently 3.18% above its 20-day moving average, 4.49% above its 50-day MA, and 33.89% above its 200-day MA. PEG ratio at 0.75 vs. industry average of 1.94. MRQ P/CF at 9.09 vs. industry average of 19.71. The stock has gained 86.67% over the last year.

15. AMERIGROUP Corporation (AGP): Health Care Plans Industry. Market cap of $3.18B. The stock is currently 7.59% above its 20-day moving average, 14.72% above its 50-day MA, and 45.30% above its 200-day MA. PEG ratio at 0.82 vs. industry average of 1.13. MRQ P/CF at 8.74 vs. industry average of 11.98. The stock is a short squeeze candidate, with a short float at 13.94% (equivalent to 8.4 days of average volume). AGP has had a couple of great days, gaining 6.82% over the last week.

*Price multiples sourced from Fidelity, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.