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Earnings Season Takes No Prisoners. As we hit the heart of earnings season, it behooves market watchers to take a step back and examine what trends have defined the period. While some smaller companies have pleasantly surprised, certain market titans have surprised on the bearish side.

Starting with Nokia (NOK ), the mobile phone maker announced on Thursday that it was not issuing dividends for the first time in twenty years. While investors are lamenting this development, in the long run they will have to be pleased that in the fourth quarter the companys balance sheet returned to the black. After a disastrous year overall in which the company lost 3.11 billion euros, in the fourth quarter it rebounded to earn 202 million euros in profit. Some may attribute this turnaround to the firms decision to use Microsofts (MSFT ) smartphone software in its phones.

On the positive side of things, Netflix (NFLX ) surprised market watchers by posting an unexpected profit for the fourth quarter after most expected the tech company to post a loss. While most industry analysts predicted the firm to would lose around thirteen cents a share for the quarter, the company instead added about that same number per share. The growth was built on an unanticipated increase in Internet subscribers as well as a very strong holiday season. As could be expected, the markets responded positively to this development as the companys share price increased an astounding forty-two percent in trading Thursday.

Finally, despite the Dow Jones posting its best start to a new year since 1997 as they approach record highs, one of the streets most influential companies is not in on the party. Apple (AAPL ) announced flat profit growth despite nearly doubling their sale of iPhones and iPads over the past year. This has sent the share price into a free fall as it once again fell over twelve percent in trading Thursday, stripping the company of roughly $47 billion in market capitalization. This is out of sync with the Dow Jones index overall, which had risen in nine of the past ten trading sessions entering Thursday.

Business Section: Investment Ideas

Netflix posting solid returns and Apples share price falling precipitously? In this kind of environment it is difficult to gauge how profitable the firms who have yet to post earnings will be.

But if youre looking to trade on earnings season wed like to help you get started on your research. We have assembled a list of seventeen stocks who are scheduled to release earnings next week and whose share price is currently undervalued in comparison to its Graham Number, an indicator that suggests the stocks are trading below fair value.

Do you think any of these names will trade higher?

1. Aetna Inc. (AET. Earnings. Analysts. Financials ): Operates as a diversified health care benefits company in the United States. Market cap at $16.26B, most recent closing price at $48.61. Diluted TTM earnings per share at 5.23, and a MRQ book value per share value at 32.58, implies a Graham Number fair value = sqrt(22.5*5.23*32.58) = $61.92. Based on the stocks price at $46.93, this implies a potential upside of 31.94% from current levels.

2. Berkshire Hills Bancorp Inc. (BHLB. Earnings. Analysts. Financials ): Provides personal and business banking, insurance, and wealth management services. Market cap at $609.05M, most recent closing price at $24.45. Diluted TTM earnings per share at 1.5, and a MRQ book value per share value at 26.9, implies a Graham Number fair value = sqrt(22.5*1.5*26.9) = $30.13. Based on the stocks price at $24.34, this implies a potential upside of 23.79% from current levels.

3. BOK Financial Corporation (BOKF. Earnings. Analysts. Financials ): A financial holding company, offers a range of financial products and services to commercial and industrial customers, and other financial institutions and consumers. Market cap at $3.85B, most recent closing price at $56.39. Diluted TTM earnings per share at 4.9, and a MRQ book value per share value at 43.62, implies a Graham Number fair value = sqrt(22.5*4.9*43.62) = $69.35. Based on the stocks price at $56.45, this implies a potential upside of 22.85% from current levels.

4. Peabody Energy Corp. (BTU. Earnings. Analysts. Financials ): Engages in the exploration, mining, and production of coal. Market cap at $6.95B, most recent closing price at $25.90. Diluted TTM earnings per share at 2.37, and a MRQ book value per share value at 22.16, implies a Graham Number fair value = sqrt(22.5*2.37*22.16) = $34.38. Based on the stocks price at $25.97, this implies a potential upside of 32.37% from current levels.

5. CACI International Inc. (CACI. Earnings. Analysts. Financials ): Provides information technology (IT) and professional services to the U. Market cap at $1.31B, most recent closing price at $57.30. Diluted TTM earnings per share at 6.05, and a MRQ book value per share value at 47.74, implies a Graham Number fair value = sqrt(22.5*6.05*47.74) = $80.61. Based on the stocks price at $58.22, this implies a potential upside of 38.46% from current levels.

6. The Chubb Corporation (CB. Earnings. Analysts. Financials ): Provides property and casualty insurance to businesses and individuals. Market cap at $21.06B, most recent closing price at $80.41. Diluted TTM earnings per share at 6.89, and a MRQ book value per share value at 60.98, implies a Graham Number fair value = sqrt(22.5*6.89*60.98) = $97.23. Based on the stocks price at $79.03, this implies a potential upside of 23.03% from current levels.

7. Chevron Corporation (CVX. Earnings. Analysts. Financials ): Engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. Market cap at $225.1B, most recent closing price at $115.01. Diluted TTM earnings per share at 12.19, and a MRQ book value per share value at 67.93, implies a Graham Number fair value = sqrt(22.5*12.19*67.93) = $136.50. Based on the stocks price at $115.24, this implies a potential upside of 18.45% from current levels.

8. DR Horton Inc. (DHI. Earnings. Analysts. Financials ): Operates as a homebuilding company in the United States. Market cap at $7.01B, most recent closing price at $21.82. Diluted TTM earnings per share at 2.77, and a MRQ book value per share value at 11.19, implies a Graham Number fair value = sqrt(22.5*2.77*11.19) = $26.41. Based on the stocks price at $21.52, this implies a potential upside of 22.72% from current levels.

9. First Financial Bancorp. (FFBC. Earnings. Analysts. Financials ): Operates as the holding company for First Financial Bank, National Association that provides commercial banking, and other banking and banking-related services. Market cap at $873.55M, most recent closing price at $14.93. Diluted TTM earnings per share at 1.18, and a MRQ book value per share value at 12.24, implies a Graham Number fair value = sqrt(22.5*1.18*12.24) = $18.03. Based on the stocks price at $14.74, this implies a potential upside of 22.3% from current levels.

10. Flushing Financial Corp. (FFIC. Earnings. Analysts. Financials ): Operates as the holding company of Flushing Savings Bank, FSB that provides banking products and services primarily to consumers and businesses. Market cap at $479.57M, most recent closing price at $15.52. Diluted TTM earnings per share at 1.09, and a MRQ book value per share value at 14.5, implies a Graham Number fair value = sqrt(22.5*1.09*14.5) = $18.86. Based on the stocks price at $15.57, this implies a potential upside of 21.12% from current levels.

11. Green Dot Corporation (GDOT. Earnings. Analysts. Financials ): Market cap at $557M, most recent closing price at $13.02. Diluted TTM earnings per share at 1.27, and a MRQ book value per share value at 8.76, implies a Graham Number fair value = sqrt(22.5*1.27*8.76) = $15.82. Based on the stocks price at $13.03, this implies a potential upside of 21.42% from current levels.

12. Hess Corporation (HES. Earnings. Analysts. Financials ): Operates as an integrated energy company. Market cap at $19.75B, most recent closing price at $57.83. Diluted TTM earnings per share at 4.46, and a MRQ book value per share value at 60.67, implies a Graham Number fair value = sqrt(22.5*4.46*60.67) = $78.03. Based on the stocks price at $57.66, this implies a potential upside of 35.32% from current levels.

13. Heartland Financial USA Inc. (HTLF. Earnings. Analysts. Financials ): Provides commercial and retail banking services to businesses and individuals. Market cap at $429.09M, most recent closing price at $25.99. Diluted TTM earnings per share at 2.55, and a MRQ book value per share value at 18.81, implies a Graham Number fair value = sqrt(22.5*2.55*18.81) = $32.85. Based on the stocks price at $26.48, this implies a potential upside of 24.06% from current levels.

14. JetBlue Airways Corporation (JBLU. Earnings. Analysts. Financials ): Provides passenger air transportation services in the United States. Market cap at $1.79B, most recent closing price at $6.28. Diluted TTM earnings per share at 0.47, and a MRQ book value per share value at 6.69, implies a Graham Number fair value = sqrt(22.5*0.47*6.69) = $8.41. Based on the stocks price at $6.12, this implies a potential upside of 37.44% from current levels.

15. Lear Corp. (LEA. Earnings. Analysts. Financials ): Engages in the design and manufacture of automotive seat systems and related components for automobiles and light trucks. Market cap at $4.61B, most recent closing price at $47.60. Diluted TTM earnings per share at 5.01, and a MRQ book value per share value at 27.53, implies a Graham Number fair value = sqrt(22.5*5.01*27.53) = $55.71. Based on the stocks price at $48.02, this implies a potential upside of 16.01% from current levels.

16. L-3 Communications Holdings Inc. (LLL. Earnings. Analysts. Financials ): Provides command, control, communications, intelligence, surveillance, and reconnaissance systems; aircraft modernization and maintenance; and government services in the United States and internationally. Market cap at $7.42B, most recent closing price at $78.89. Diluted TTM earnings per share at 8.78, and a MRQ book value per share value at 60.82, implies a Graham Number fair value = sqrt(22.5*8.78*60.82) = $109.61. Based on the stocks price at $78.81, this implies a potential upside of 39.09% from current levels.

17. Legg Mason Inc. (LM. Earnings. Analysts. Financials ): Operates as an asset management company worldwide. Market cap at $3.63B, most recent closing price at $27.54. Diluted TTM earnings per share at 1.26, and a MRQ book value per share value at 41.43, implies a Graham Number fair value = sqrt(22.5*1.26*41.43) = $34.27. Based on the stocks price at $27.49, this implies a potential upside of 24.67% from current levels.