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Thu, April 28, 2011

TSN, POL, FONR, AAP, ESI, ALK, Food Stocks Undervalued


Published on 2011-04-28 06:50:52 - WOPRAI
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April 28, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Food sector and these stocks are the most undervalued as of today. TYSON FOODS INC-CL A (NYSE:TSN), POLYONE CORPORATION (NYSE:POL), FONAR CORP (NASDAQ:FONR), ADVANCE AUTO PARTS INC (NYSE:AAP), ITT EDUCATIONAL SERVICES INC (NYSE:ESI), ALASKA AIR GROUP INC (NYSE:ALK) are all expected to go Up as they are Undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.

The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:

     Symbol     Company Name                        Last Close     Fair Value     Valuation                   Industry               
     TSN        TYSON FOODS INC-CL A                $19.70         $26.77         26.40% Undervalued          Food                   
     POL        POLYONE CORPORATION                 $14.40         $19.55         26.30% Undervalued          Chemical               
     FONR       FONAR CORP                          $1.83          $2.47          25.90% Undervalued          Healthcare             
     AAP        ADVANCE AUTO PARTS INC              $66.35         $89.01         25.50% Undervalued          Retail                 
     ESI        ITT EDUCATIONAL SERVICES INC        $74.71         $98.62         24.20% Undervalued          BusinessSvc            
     ALK        ALASKA AIR GROUP INC                $64.45         $84.68         23.90% Undervalued          Transportation         

Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.

Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.

TYSON FOODS INC-CL A (NYSE:TSN) - Tyson Foods, Inc., together with its subsidiaries, engages in the production, distribution, and marketing of chicken, beef, pork, and prepared food products, as well as related allied products worldwide. The companys Chicken segment involves in breeding and raising chickens, as well as processing live chickens into fresh, frozen, and value-added chicken products. Its Beef segment processes live fed cattle and fabricates dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. The companys Pork segment involves in the processing live market hogs; and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. Its Prepared Foods segment manufactures and markets frozen and refrigerated food products comprising pepperoni, bacon, beef and pork pizza toppings, pizza crusts, flour and corn tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes, and processed meats. The company markets and sells its products to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, international export companies, and domestic distributors, as well as to foodservice operations, such as plant and school cafeterias, convenience stores, hospitals, and other vendors. Tyson Foods, Inc. also offers its allied products to the manufacturers of pharmaceuticals and technical products, as well as to pork processors. The company was founded in 1935 and is headquartered in Springdale, Arkansas.

POLYONE CORPORATION (NYSE:POL) - PolyOne Corporation provides specialized polymer materials, services, and solutions with operations in thermoplastic compounds, specialty polymer formulations, color and additive systems, thermoplastic resin distribution, and specialty polyvinyl chloride (PVC) resins. The companys International Color and Engineered Materials segment offers color and additive masterbatches, and engineered materials. Its Specialty Engineered Materials segment provides custom plastic compounding services and solutions for processors of thermoplastic materials to various markets, as well as offers a range of thermoplastic elastomer compounds for consumer, packaging, and medical applications. PolyOnes Specialty Color, Additives, and Inks segment provides specialized color and additive concentrates, as well as inks and latexes. Its Performance Products and Solutions segment offers vinyl compounds, vinyl resins, and specialty coating materials based on vinyl to various manufacturers of plastic parts and consumer-oriented products, as well as offers materials testing and component analysis, custom compound development, colorant and additive, design assistance, structural analyses, process simulations, and extruder screw design services. The companys PolyOne Distribution segment distributes engineering and commodity grade resins to custom injection molders and extruders. PolyOnes Resin and Intermediates segment produces chlorine and caustic soda. The company primarily serves building and construction materials, wire and cable, transportation, durable goods, packaging, electrical and electronics, medical, and telecommunications markets, as well as various industrial applications. PolyOne sells its products worldwide through direct sales personnel, sales agents, and distributors. The company was founded in 1927 and is headquartered in Avon Lake, Ohio.

FONAR CORP (NASDAQ:FONR) - FONAR Corporation engages in the design, manufacture, sale, and service of magnetic resonance imaging (MRI) scanners for the detection and diagnosis of human diseases. It provides Stand-Up/Upright MRI scanners, which allows patients to be scanned in a weight-bearing condition, such as standing, sitting, or bending in any position that causes symptoms; and FONAR 360 MRI scanner, a diagnostic scanner. The company, through its wholly owned subsidiary, Health Management Corporation of America, also offers management services to diagnostic imaging facilities, such as development, administration, and leasing of office space, facilities, and medical equipment; provision of supplies; staffing and supervision of non-medical personnel; legal services; accounting, billing, and collection; and the development and implementation of practice growth and marketing strategies. It serves private scanning centers and hospitals. As of June 30, 2009, the company managed 10 diagnostic imaging facilities located in the states of New York, Georgia, and Florida. FONAR Corporation was founded in 1978 and is headquartered in Melville, New York.

ADVANCE AUTO PARTS INC (NYSE:AAP) - Advance Auto Parts, Inc., through its subsidiaries, operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. It operates in two segments, Advance Auto Parts (AAP) and Autopart International (AI). The AAP segment operates stores, which primarily offer auto parts, including alternators, batteries, chassis parts, clutches, engines and engine parts, radiators, starters, transmissions, and water pumps; accessories comprising floor mats, mirrors, vent shades, MP3 and cell phone accessories, and seat and steering wheel covers; chemicals consisting of antifreeze, freon, fuel additives, and car washes and waxes; and oil and other automotive petroleum products. This segment also provides battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics and project brochures, loaner tool programs, and oil and battery recycling services; and sells its products through online. The AI segment operates stores that offer replacement parts for domestic and imported cars, and light trucks to customers in northeast and mid-Atlantic regions, as well as to warehouse distributors and jobbers in North America. As of January 1, 2011, the company operated 3,369 AAP stores, including 3,343 stores located in the northeastern, southeastern, and Midwestern regions of the United States under the Advance Auto Parts and Advance Discount Auto Parts trade names; 26 stores situated in Puerto Rico and the Virgin Islands under the Advance Auto Parts and Western Auto trade names; and 194 stores under the Autopart International trade name in the United States. It serves do-it-yourself, do-it-for-me, or commercial customers. The company was founded in 1929 and is based in Roanoke, Virginia.

ITT EDUCATIONAL SERVICES INC (NYSE:ESI) - itt Educational Services Inc. offers postsecondary-degree programs in the U.S. that provide diplomas as well as associates, bachelors, and masters degrees in information technology, electronics technology, drafting and design, business, criminal justice, and health sciences. As of Mar. 22, the company operated 90 itt Technical Institutes in 33 states that primarily offer career-oriented degree programs to about 47,000 students. Headquartered in Carmel, Ind., itt was started in 1946.

ALASKA AIR GROUP INC (NYSE:ALK) - Alaska Air Group, Inc., through its subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc., operates as an airline company serving destinations in the western United States, Canada, and Mexico. The company provides passenger air services; and freight and mail services primarily to and within the state of Alaska and on the West Coast. As of December 31, 2009, it operated a fleet of 110 jet aircraft; and Horizon Air Industries operated a fleet of 18 jets and 40 turboprop aircraft. The company was founded in 1932 and is based in Seattle, Washington.

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