25 Undervalued Stocks That Still Look Attractive

It’s hard not to have noticed the stock markets furious rally that began back in March of this year. Over the last few months, nearly every single economic report or survey is trumpeted as further evidence of an economic recovery. The stock markets have been further fueled by better than expected earnings performances from the vast majority of companies.

Of course the point that many overlook is that while the economic data may be improving, it’s still quite bad. And the only reason that so many companies exceeded earnings expectations this quarter was due to exceptionally low expectations on Wall Street going into earnings season.

Nevertheless, the Dow Jones Industrial average has surged 46% since early March. In hindsight, investors could have earned a healthy return buying almost any stock in the dark days of early March. Just consider these returns on Dow stocks since the beginning of March.

Company	Ticker	% Return
Bank of America	BAC	349%
American Express	AXP	176%
Alcoa	AA	94%
Caterpillar	CAT	88%
JP Morgan Chase	JPM	87%

Of course the downside of such a strong market rally is that stock valuations rise. That’s great for investors that bought back in March, but it doesn’t help investors looking to enter the market today. It’s much harder to find attractive value stocks today, but we at eChristianInvesting.com have put together a list of 25 undervalued stocks that still look attractive.

Alcoa (AA: 14.26 -0.28%)

At $12 per share, the aluminum stock is still trading well below its 52-week high of $32 per share.

U.S. Steel (X: 59.24 -1.15%)

Recovery in the construction industry should help lift U.S. Steel which could see its stock triple if it’s able to return to its 2008 levels.

Time Warner (TWX: 31.24 +0.26%)

A recovery in the advertising environment and shedding AOL could help lift this $28 stock back to $50.

Harley Davidson (HOG: 28.31 +0.25%)

Harley Davidson still trades well below its 52-week high even though earnings are expected to double next year.

Costco (COST: 60.72 -0.90%)

Although Jim Cramer doesn’t believe that Costco is the next “discount king”, the discount retailer will likely report EPS near their 2008 levels despite trading well below their 2008 stock price.

Walmart (WMT: 55.34 -1.07%)

Walmart was the top Dow stock of 2008, but investors seem to have forgotten Walmart in all the excitement around the economic recovery.

Kroger (KR: 21.64 -2.70%)

Earnings are expected to grow 8% this year for the grocery store retailer, but their stock price is still languishing near their 52-week low.

Procter & Gamble (PG: 63.84 +0.17%)

While P&G’s consumer products portfolio wasn’t as resistant as many thought, the company should be able to capitalize on a recovery in the global economy.

Conoco Phillips (COP: 52.37 -0.65%)

Despite a run-up in oil prices, this energy stock is still very cheap and offers a 4.2% dividend yield.

Devon Energy (DVN: 64.31 -1.65%)

Wall Street expects revenues to grow 26% next year, but the stock still trades at a discount to its peers.

Transocean (RIG: 81.84 -2.19%)

Despite rising oil prices this energy stock trades at less than 7x earnings and well below its 52-week high of $132.

Abbott Laboratories (ABT: 53.46 -0.58%)

Earnings are expected to grow by double digits both this year and next, yet this growth stock trades at a mere 11x forward looking earnings.

Eli Lilly (LLY: 36.17 -0.52%)

This pharmaceutical stock offers investors a 5.8% dividend yield, continues to grow earnings and will likely increase its dividend payout next year.

Medtronic (MDT: 44.79 -0.84%)

Medtronic continues to grow both on their top-line and bottom-line and yet only trades at 11x forward earnings.

Bank of America (BAC: 16.82 -1.52%)

Investors who bought in March have made a boatload of money on Bank of America, but the recovering financial stock still trades well below its 2008 levels.

Citigroup (C: 3.90 -2.99%)

Citi is another financial stock that has had investors smiling, and yet the stock will likely double again in the next 12 months.

Charles Schwab (SCHW: 18.58 -1.12%)

The securities brokerage stands to benefit as investors return to the stock market after last year’s roller-coaster ride.

US Bancorp (USB: 26.14 +0.58%)

Next year, earnings are likely to return to near 2008 levels, but the stock still trades at less than half its 2008 peak.

General Electric (GE: 18.07 -0.66%)

GE’s stock trading at $5 back in March was ridiculous, but its current level of $14 will likely look ridiculous next year when the stock is back near $30.

Burger King (BKC: 20.68 +2.12%)

The fast food chain is expected to grow earnings by nearly 15% next year, but still trades near its 52-week low.

Dell (DELL: 14.41 -0.96%)

The computer maker reported better than expected earnings results today and with the economy improving, the stock will likely be back above $20.

Research in Motion (RIMM: 73.0575 -1.90%)

Demand remains strong for the company’s blackberry device and yet the stock trades well off its 52-week high of $130.

Sprint Nextel (S: 3.76 -1.05%)

The wireless provider stands to benefit from Palm Pre and yet still trades below $4.

Southern Company (SO: 33.18 -0.60%)

The utility stock offers investors a 5.6% dividend yield, is expected to increase earnings next year and is likely to jump back to $40.

Dominion Resources (D: 40.70 +0.47%)

Another high yielding utility stock with positive earnings growth and potential for the stock price to increase 30% over the next 12 months.