Tickers in this Article: ADM, LLL, CACI, SAI, BP, XOM, WHR
A turbulent summer has left numerous stocks trading at prices well below where they were a few months ago. Some of these stocks have been knocked down due to weak earnings or less than optimistic outlooks. In other instances, the pullbacks may be overdone. Here are four stocks that are undervalued right now. (For more information, check out Value Investing + Relative Strength = Higher Returns.)

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Harvesting Profits
Agricultural commodity producer Archer Daniels Midland (NYSE:ADM) has seen its stock price decline by 8.4% over the last three months and is in striking distance of its 52-week low. Shares of ADM now trade at a price-to-book (P/B) ratio of 0.99 and a forward P/E of 7.9.

Looking ahead, Archer Daniels Midland will face tighter margins in its corn and oilseed processing business segments. These headwinds can be overcome, though, with increased volumes. Strong demand for corn sweetener and vegetable oil should allow the company to achieve this balance and continue to grow earnings in the quarters ahead.

Potential Cuts in Defense Spending
Government contractor L-3 Communications (NYSE:LLL) may carry a similar appeal to value-oriented investors with a P/B ratio of 1.0 and a forward P/E of 7.0. The market has sold off this stock to the tune of 18.5% over the last three months. Investors have become concerned that potential cuts in defense spending could curtail the future growth of L-3 and competitors such as CACI International (NYSE:CACI) and SAIC (NYSE:SAI).

Top-line growth may be tougher to come by in the future, but this one appears to be overcooked. The market may also be putting too much confidence behind the government's ability to cut spending.

Damage Control
The global oil powerhouse BP (NYSE:BP) has been unable to get its stock price back on track ever since its involvement in the oil spill last spring. Shares of BP now sit 38.4% lower than they were at the time of the Deepwater Horizon incident. The stock also wields a P/B ratio of 1.1 and a forward P/E of 5.2.

Even though the company recently lost out to Exxon Mobil (NYSE:XOM) in a bid to partner with Russia's OAO Rosneft to explore and develop oil reserves in the Kara Sea, BP still has ample opportunity to expand. On September 7 it announced a major extension of its Mad Dog field in the Gulf of Mexico. The potential from this discovery could mitigate some of the setbacks that shareholders have suffered, and the stock's 2.6% dividend yield is an added attraction for income investors.

One other name in the bargain bin right now is the home appliance manufacturer Whirlpool (NYSE:WHR). The stock is down 40.3% on the year, as the company has battled inflated material costs and weakened demand. Tempered expectations have left this stock with a P/B ratio of 0.93 and a forward P/E of 6.2. Even if it does take some time for demand to pick back up, shareholders will be compensated with a 3.5% dividend yield while they wait out the storm.

The Bottom Line
The significant market sell-offs that we have seen in recent months have been unnerving for individual investors. A poor macroeconomic backdrop has fueled the nervousness, but pockets of opportunity remain amidst the madness. Investors are encouraged to engage in their own due diligence, but these four stocks have multiple characteristics that should catch the eyes of those scouring for value. (To help you with value investing, read The Value Investor's Handbook.)

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