XPO Logistics Inc (XPO), Restoration Hardware Holdings Inc (RH): Top Value Stocks for the Next Six Months

Bank of America is not only the cheapest of any banking stock, but its deposits are growing, its capital is secure, and real estate is booming! Not to mention, there are countless rumors that the company is soon to announce a new dividend. If so, this could be the catalyst to send Bank of America higher, but either way, I think its valuation alone makes for an intriguing play in the final six months of 2013.

High-flying biotech with more upside to go

Santarus, Inc. (NASDAQ:SNTS) has ticked higher by 210% over the last year. Therefore, many might believe it is time to take profits. However, gains don’t indicate value and Santarus is still very cheap!

The biotechnology company has five products, expects revenue of $335 million in 2013, and is profitable. It has a market cap of $1.4 billion, which is why many believe it is fairly valued, trading at four times 2013’s sales.

However, Santarus CEO Gerald Proehi has publicly guided that these five products alone could generate north of $700 million in annual revenue, and its newly launched drug Uceris, for ulcerative colitis, is outperforming all early expectations.

When you consider these facts, and two late stage products in its pipeline, you begin to see that Santarus is still quite cheap with a lot of growth potential. Seeing as how the company flew under-the-radar for much of last year, I expect continued gains in the final six months!

Final thoughts

Every month I publish a “Value of the Month,” based on the guidelines and principles in my book Taking Charge With Value Investing (McGraw-Hill, 2013), but this month I wanted to do something little different, and look at several values for the next six months; in five different industries.

Overall, I think all of these stocks have great potential to trade higher, and when we look back at the end of the year, I think many will realize the value that was present in each of these stocks. Hence, I consider them all top values in the market.

The article Top Value Stocks for the Next Six Months originally appeared on Fool.com and is written by Brian Nichols.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.