Monday, June 18, 2012

4 Undervalued Small Cap Financials With Analyst Love


When analysts rate a company's stock as a 'Strong Buy', it's a sign that there are a variety of things that the company is doing right. It also means there is confidence that the stock is going to increase in value. Today we focus on small cap stocks sporting high analyst ratings, but that also look undervalued from a price-multiple perspective. We came up with a rather diverse list, but we think you'll find it interesting.The forward P/E is a price multiple valuation metric, which is similar to the current P/E ratio, except that it uses the forecasted earnings instead. While this number might not be as accurate because it uses "forecasted" numbers, it does offer the benefit of illustrating analysts' expectations of a firm. If the market believes that earnings will grow moving forward, then the forward P/E should be lower than the current P/E. Financial Leverage, also
... Read the rest at SeekingAlpha.com

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