A Trio of Stocks With High Growth Potential

Looking for U.S.-listed equities that have the characteristics listed below represents a solid starting point when screening the market for potential value opportunities:

• The shares are trading near or below their intrinsic value based on the Peter Lynch value.
• The return on invested capital exceeds the weighted average cost of capital, indicating the company is creating value.
• The stock has optimistic recommendation ratings on Wall Street.

Thus, investors could be interested in the following stocks, as they meet the above criteria,

Cambium Networks Corp

The first stock that meets the criteria is Cambium Networks Corp. (

CMBM, Financial), a Rolling Meadows, Illinois-based provider of various solutions for the communications infrastructure of wireless broadband networking. The company counts several network operators among its customers.

The stock price ($25.09 per share on Feb. 4) is trading slightly above the Peter Lynch earnings line ($24.60) but is still well below the median historic valuation line ($64.13).

The stock has a market capitalization of $668.55 million and a 52-week range of $18.95 to $66.40.

The stock has a return on invested capital of 49.04%, while the weighted average cost of capital is 7.87%.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $48 per share.

International Money Express Inc.

The second stock that qualifies is International Money Express Inc. (

IMXI, Financial), a Miami, Florida-based provider of money transfer services for requests from the Americas, Africa and the Caribbean.

The stock price ($15.47 per share on Feb. 4) is trading well below the median historic valuation line ($19.29) and slightly below the Peter Lynch earnings line ($15.65).

The stock has a market capitalization of $597.35 million and a 52-week range of $13.14 to $18.96.

The stock has a return on invested capital of 44.97%, which is almost eight times the weighted average cost of capital of 5.75%.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $21 per share.

Liquidity Services Inc.

The third stock is Liquidity Services Inc. (

LQDT, Financial), a Bethesda, Maryland-based provider of e-commerce marketplaces worldwide.

The stock price ($15.65 per share on Feb. 4) is trading well below the median historic valuation line ($44.24) and also below the Peter Lynch earnings line ($21.75).

The stock has a market capitalization of $556.59 million and a 52-week range of $14.21 to $30.

The stock has a return on invested capital of 46.24%, which is almost five times the weighted average cost of capital of 9.4%.

On Wall Street, the stock has one recommendation rating of buy with a target price of $25 per share.