BATS data provided in real-time. NYSE, NASDAQ and AMEX data delayed 15 minutes.

. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Kapitalls Eben Esterhuizen and Rebecca Lipman do not own any of the shares mentioned above. Data sourced from Finviz.

Help us keep this a respectfully Foolish area!This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates ourFools Rules, please report it via theReport this Commenticon found on every comment.

When a companys current market price is deeply lagging to the target price, it may signal that the company has more value to price in (meaning, the stock price may rise).

Powered and implemented byInteractive Data Managed Solutions.Terms & Conditions

The Graham Number only requires two data points: current earnings per share and current book value per share. The Graham Number = Square Root of (22.5) x (TTM Earnings per Share) x (MRQ Book Value per Share). This equation assumes that a stock is overvalued if P/E is over 15 or P/BV is over 1.5.

1. Timken Co.() : Develops, manuctures, markets, and sells anti-friction bearings and related products and steel products primarily in the United States and Europe. Of the 8 analysts that research the stock, the lowest target price stands at 52, which implies a potential upside of 34.16% from current levels around 38.76. Diluted TTM earnings per share at 4.39, and a MRQ book value per share value at 22.58, implies a Graham Number ir value = sqrt(22.54.3922.58) = $47.23. Based on the stocks price at $38.76, this implies a potential upside of 21.84% from current levels.

Value Ideas: 8 Deeply Undervalued Stocks for Your Watchlist value stock investing,The single, easiest way to keep track of all the stocks that matter...

4. Warren Resources() : Engages in the exploration, development, and production of onshore crude oil and gas reserves in the United States. Of the 5 analysts that research the stock, the lowest target price stands at 4, which implies a potential upside of 27.80% from current levels around 3.13. Diluted TTM earnings per share at 0.27, and a MRQ book value per share value at 2.41, implies a Graham Number ir value = sqrt(22.50.272.41) = $3.83. Based on the stocks price at $3.13, this implies a potential upside of 22.25% from current levels.

Graham Number

Your own personalized stock watchlist!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Graham created an equation to help search for potentially undervalued stocks, and identifies what is known as the Graham Number, or the maximum ir value for a stock. Any stock trading at a significant discount to this number is considered by the equation to be undervalued.

7. KBR() : Operates as an engineering, construction, and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, and industrial sectors worldwide. Of the 13 analysts that research the stock, the lowest target price stands at 35, which implies a potential upside of 23.11% from current levels around 28.43. Diluted TTM earnings per share at 3.06, and a MRQ book value per share value at 16.98, implies a Graham Number ir value = sqrt(22.53.0616.98) = $34.19. Based on the stocks price at $28.43, this implies a potential upside of 20.27% from current levels.

6. NII Holdings() : Provides wireless communication services to businesses and individuals primarily in Mexico, Brazil, Argentina, Peru, and Chile. Of the 16 analysts that research the stock, the lowest target price stands at 27, which implies a potential upside of 26.82% from current levels around 21.29. Diluted TTM earnings per share at 1.77, and a MRQ book value per share value at 18.83, implies a Graham Number ir value = sqrt(22.51.7718.83) = $27.38. Based on the stocks price at $21.29, this implies a potential upside of 28.63% from current levels.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research. List compiled by Eben Esterhuizen, CFA.

Click Here Now

Track the companies that matter to you. Its FREE! Click one of these n vorites to get started:Apple;Google;Ford.

We also wanted to add the perspective of respected investor Benjamin Graham. Graham was a mentor to Warren Buffett, whom he taught at Columbia Business School. Graham is also considered to be the godther of value investing.

SEC Filings and Insider Transactions provided by Edgar Online.

Real-Time prices provided byBATS. Market data provided byInteractive Data.

8. Denbury Resources() : Engages in the acquisition, exploitation, drilling, and extraction of oil and natural gas properties in the Gulf Coast region located in Mississippi, Texas, Louisiana, and Alabama. Of the 15 analysts that research the stock, the lowest target price stands at 18, which implies a potential upside of 16.50% from current levels around 15.45. Diluted TTM earnings per share at 1.32, and a MRQ book value per share value at 12.37, implies a Graham Number ir value = sqrt(22.51.3212.37) = $19.17. Based on the stocks price at $15.45, this implies a potential upside of 24.06% from current levels.

Company fundamental data provided byMorningstar. Earnings Estimates and Analyst Ratings provided byZacks.

will be displayed with your comment.

Analyst target prices can be very useful guides for investors. The target price is a price level set by analysts that, based on their data and estimates, represents their predictions for that company in the upcoming year.

2. Titan Machinery() : Operates a network of full service agricultural and construction equipment stores in the United States. Of the 5 analysts that research the stock, the lowest target price stands at 29, which implies a potential upside of 33.15% from current levels around 21.78. Diluted TTM earnings per share at 1.87, and a MRQ book value per share value at 15.43, implies a Graham Number ir value = sqrt(22.51.8715.43) = $25.48. Based on the stocks price at $21.78, this implies a potential upside of 16.99% from current levels.

Its a 100% FREE Motley Fool service...

Please be respectful with your comments. Review ourFools Rules.

Even buy your stocks cheaper and sell them for higher prices! Youll see whyBarronscalls it smart adviceJust enter your email:

The list

We wanted to explore this idea by forming a universe of companies that are currently undervalued to target price. And because analysts often have different opinions, and tend to be overly optimistic, we used the lowest analyst target price.

Without further ado, here are the top eight stocks, sorted by potential upside to target price, listed with relevant information. Do you think these stocks are truly undervalued? Analysts seem to think so...

3. The GEO Group() : Provides government-outsourced services specializing in the management of correctional, detention, and mental health and residential treatment cilities in the United States, Australia, South Africa, and the United Kingdom. Of the 7 analysts that research the stock, thevalue stock investing lowest target price stands at 22, which implies a potential upside of 30.56% from current levels around 16.85. Diluted TTM earnings per share at 1.3, and a MRQ book value per share value at 16.57, implies a Graham Number ir value = sqrt(22.51.316.57) = $22.02. Based on the stocks price at $16.85, this implies a potential upside of 30.65% from current levels.

To create the list bValue Ideas: 8 Deeply Undervalued Stocks for Your Watchlist value stock investingelow we narrowed down a universe of stocks to those with significant discounts to analyst target price. Then we applied the Graham equation and took only the names deemed most undervalued.

5. Stone Energy Corp.() : Engages in the acquisition, exploration, exploitation, development, and operation of oil and gas properties located in the Gulf of Mexico and Appalachia region. Of the 10 analysts that research the stock, the lowest target price stands at 33, which implies a potential upside of 27.46% from current levels around 25.89. Diluted TTM earnings per share at 3.53, and a MRQ book value per share value at 13.81, implies a Graham Number ir value = sqrt(22.53.5313.81) = $33.12. Based on the stocks price at $25.89, this implies a potential upside of 27.92% from current levels.

Use the list below as a starting point for your own analysis. (Click hereto access free, interactive tools to analyze these ideas.)

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.