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Tuesday, January 8, 2013

Undervalued Stock Detected (NASDAQ: SHLD)

Shares of SHLD fell by 2.14% or $-0.92/share to $42.00. NASDAQ is trading at a price to book ratio of 1.18. This indicates that the shares are relatively cheap compared to book value which means the market is pricing in going concern value. The PEG is 0.1 suggesting that the shares are trading at an excellent value relative to firm's growth rate. The price to sales ratio came in at 0.11. Hence, the firm is extremely cheap relative to its top line sales figures. On average, 1165840 shares of SHLD exchange hands on a given day and today's volume is recorded at 503350. These factors combined may make this company a potential takeover candidate. Value investors may have an eye on this one, especially if the stock gets cheaper.

Sears Holdings Corporation (Holdings) is a retailer with 2,172 full-line and 1,338 specialty retail stores in the United States operating through Kmart Holding Corporation (Kmart) and Sears, Roebuck and Co.