12 Most Undervalued Stocks in the Russell 1000, Ex-Financials

Below is a list of the 12 most undervalued stocks in the Russell 1000. All companies listed met The Applied Finance Group’s (AFG’s) Buy screen (*criteria explained below) and are in the bottom half of their sector in Market Value/Invested Capital (MV/IC) which by definition qualifies the companies as part of the AFG Value Universe. When identifying buy ideas AFG looks for companies with the most valuation upside compared to their sector peers, above sector median expected Economic Margin change, and a management quality score that reflects a management team following a wealth creating strategy.

Also shown in the table is each company’s implied sales growth expectations along with their historical sales growth. All 12 of these companies have very reasonable expectations for growing their sales relative to what they have been able to deliver historically. Companies with reasonable expectations embedded