Yes, the broad market has risen close to 60% since bottoming in March of this year. And yes, there are stocks that have achieved gains in excess of 700%, 800% and 900% since that time. But know this, too: there are still issues available to bargain hunters. Those who value fundamentals and seek to buy stocks trading at a deep discount to traditional market valuations can help themselves to a bevy of solid companies, five of which are spotlighted below. These are stocks that pay a healthy dividend, sport a relatively low price/earnings ratio, and trade close to, or under, their breakup value.

IN PICTURES: 9 Ways To Use A Tax Refund

Central Vermont Public Services Corp.
(NYSE:CV) is an electricity provider to two thirds of the population of that state. The shares currently trade with an annual dividend yield of 4.80% and a P/E ratio of just 11.5. The stock is up 19% since May, and price to book is a mere 1. Price to sales comes in at 0.66.

CV was recently granted $31 million in federal stimulus money to initiate a pilot program to automate its grid and update the state's metering protocols. Later, an additional $38 million will be advanced, in what will be Vermont's biggest electric capital spending project in history. (For more read How do government-issued stimulus checks affect the economy?.)

Get Paid Now, Pay Later
Advance America, Cash Advance Centers (NYSE:AEA) also offers a reasonable yield, at 4.40% per annum. The shares trade with a multiple of 8.7-times last year's earnings and are higher by 590% since 52-week lows set in March. Despite the rise in price, the company's shares still trade at only 0.53-times last year's sales. Price/book for AEA is 1.78, and the company reported earnings per share of 20 cents this quarter, 43% above analyst's expectations of 14 cents per share.

Educational Development Corporation (Nasdaq:EDUC) is an American publisher of British children's books. The company's shares offer a yearly dividend yield of 8.24% and have a one year, trailing P/E of 10.63. EDUC shares trade with a price/book ratio of 1.24, and at 0.67-times sales. (Learn how to evaluate stocks using financial statements in our Financial Statements Tutorial.)

Internet Behemoth
Earthlink, Inc.
(Nasdaq:ELNK) is an internet service provider that services customers across the U.S. The shares trade with a P/E of just 7 and a yield of 6.7% annually. Earthlink shares trade at just 1.5 times the company's breakup value.

Finally, Park National Corporation (AMEX:PRK), a bank holding company, offers shareholders a 6.67% annual yield and a P/E ratio of 12.4. Price to Book on Park National is 1.4.

The Bottom Line
Even after seven straight months of the markets rising, there are still pockets of value to be found. Investors who seek solid fundamentals could do a lot worse than investing in the above listed issues.

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Mutual Funds & ETFs

    ETF Analysis: iShares MSCI USA Minimum Volatility

    Learn about the iShares MSCI USA Minimum Volatility exchange-traded fund, which invests in low-volatility equities traded on the U.S. stock market.
  2. Investing

    How To Calculate Minority Interest

    Minority interest calculations require the use of minority shareholders’ percentage ownership of a subsidiary, after controlling interest is acquired.
  3. Stock Analysis

    Should You Follow Millionaires into This Sector?

    Millionaire investors—and those who follow them—should take another look at the current economic situation before making any more investment decisions.
  4. Professionals

    What to do During a Market Correction

    The market has corrected...now what? Here's what you should consider rather than panicking.
  5. Mutual Funds & ETFs

    ETF Analysis: Vanguard Mid-Cap Value

    Take an in-depth look at the Vanguard Mid-Cap Value ETF, one of the largest and most popular mid-cap funds in the U.S. equity space.
  6. Mutual Funds & ETFs

    ETF Analysis: Schwab US Broad Market

    Take an in-depth look at the Schwab U.S. Broad Market ETF, an incredibly low-cost fund based on a wide selection of the U.S. equity market.
  7. Professionals

    Tips for Helping Clients Though Market Corrections

    When the stock market sees a steep drop, clients are bound to get anxious. Here are some tips for talking them off the ledge.
  8. Stock Analysis

    The Safest Stocks You Can Invest in Right Now

    These stocks are likely to hold up better than others in a bear market, but there's a twist.
  9. Investing Basics

    5 Reasons to Expect Lower Stock Returns

    Lower stock returns are likely here to stay for some time. Here are five reasons why.
  10. Investing Basics

    What to Cut From Your Portfolio Right Now

    Owning stocks may shortly become too scary for your portfolio. Here's why, and here are some alternatives.
RELATED TERMS
  1. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis ...
  2. Surplus

    The amount of an asset or resource that exceeds the portion that ...
  3. Cash Flow

    The net amount of cash and cash-equivalents moving into and out ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors ...
  5. Asset Turnover Ratio

    The amount of sales generated for every dollar's worth of assets ...
  6. Capitalized Cost

    An expense that is added to the cost basis of a fixed asset on ...
RELATED FAQS
  1. What are some examples of general and administrative expenses?

    In accounting, general and administrative expenses represent the necessary costs to maintain a company's daily operations ... Read Full Answer >>
  2. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  3. How do dividend distributions affect additional paid in capital?

    Whether a dividend distribution has any effect on additional paid-in capital depends solely on what type of dividend is issued: ... Read Full Answer >>
  4. Why can additional paid in capital never have a negative balance?

    The additional paid-in capital figure on a company's balance sheet can never be negative because companies do not pay investors ... Read Full Answer >>
  5. When does the fixed charge coverage ratio suggest that a company should stop borrowing ...

    Since the fixed charge coverage ratio indicates the number of times a company is capable of making its fixed charge payments ... Read Full Answer >>
  6. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!