Top 5 Undervalued Stocks

Rowan Cos Inc (NYSE: RDC) was upgraded by Deutsche Securities from “hold” to “buy.” The company reported its 2Q09 EPS $0.03 ahead of the consensus mainly due to lower drilling costs. Rowan’s rig fleet has an average age of 19 years. The PEG ratio is at 0.5.

Endurance Specialty Holdings (NYSE: ENH) yields 2.9%. The company had high levels of liquidity (cash and cash equivalents exceeding $1.2 billion) as on June 30, 2009. Endurance has a PEG ratio of 0.25 and its shares are poised to benefit from industry upswings.

Axis Capital Holdings Ltd (NYSE: AXS) is trading significantly short of its 52-week high of $35.99 (52-week change: -10.33%). The company reported its 2Q09 EPS marginally ahead of expectations. The PEG ratio is 0.51.

Omnicare Inc (NYSE: OCR) was upgraded by analysts at Thomas Weisel from “market weight” to “overweight.” The shares have declined by more than 15% over the past year. The PEG ratio is 0.74.

Transatlantic Holdings Inc (NYSE: TRH) reported its 2Q09 earnings at $1.93, significantly ahead of expectations, benefiting from a positive underwriting environment. The company’s book value per share rose substantially during the quarter, backed by robust earnings. The PEG ratio is at 0.51.