Though the market is due for a bit of a retreat, astute investors know this isn’t a time to panic, but rather a time to go shopping for bargains. We’ve got five tickers for your consideration today.

These stocks were hand-picked based on a variety of factors, including fundamental, technical, and sentiment. Just bear in mind that the technical criteria we use specifically look for stocks that are truly on the verge of a breakout; you may not have days to mull them over.

Better yet, all five appear to be undervalued, and all five are priced under $10.00. Two of them are under $5.00…. true penny stock pricing. Bargains indeed.

We’ve got some other considerations for you after we look at these five stocks, so be sure to keep reading once you’ve seen all five ideas.

Genworth Financial Inc. (GNW)

Don’t look now, but the insurance companies are making a comeback. Genworth is near the front of the pack. The stock is trading at nearly a tenth of what it was a year ago, but appears to be on the mend. And no wonder - the forward-looking P/E is a paltry 2.0.

If volume is any indication, the market caught its collective mistake on Tuesday.

MBIA Inc. (MBI)

The stock jumped shortly after the next earnings call was announced, perhaps serving as an omen of what to expect. (Or, it may be a case of “buy the rumor, sell the news”.) At only $5.81 though - and with the stock breaking above resistance - it may be worth the price of entry to see what happens with this stock that nobody, and we mean nobody, says they want to touch… even though it’s more than doubled since early March.

Century Aluminum (CENX)

Here’s an amazing stat…despite Century Aluminum’s 100% rally since late April, the stock is still down 90% since its mid-2008 peak. That spells value, but more importantly, the recent bump suggests the value is being unlocked.

The only drawback we can see with CENX is that it’s very overbought in the short run. Waiting for a pullback may be merited.

Hexcel Corp. (HXL)

Like Rodney Dangerfield, Hexcel gets no respect. This aerospace and defense contractor has topped earnings estimates for three straight quarters, yet analysts are still not budging on this year’s and next year’s expectations.

The stock’s on a tear too, but volume is still increasing on the way up.

Emprasas ICA SA (ICA)

This may be one of the biggest companies you’ve never heard of. The Mexican engineering and construction stock took the expected hit with the swine flu scare, but as those fears have subsided, so has the selling. Bigger picture, infrastructure investment is the primary beneficiary of a global stimulus, and Emprasas is well-positioned in the region. The stock’s trading at about 1/3 of its mid-2008 value.

Final Thoughts

So are these ‘trades’, or ‘investments’? Fundamentals are for long-term thinkers, but technical analysis is for short-term traders.

We hate to pigeon-hole any trading idea, as that may prevent you from taking the appropriate profit-taking or stop-loss action should the need arise. But, if we have to categorize them, we’ll lean towards describing them as investments. (We just happen to use technical analysis to optimize our entries and exits into bigger-picture trends.)

With that in mind, there’s only one caveat….. recognize that being 100% committed to a market philosophy in this environment can be pad for your portfolio’s health; flexibility is the key to maximizing your profit and minimizing your losses.

Did you miss out on the 70% gain we booked on Clearwater Paper Corp. (CLW) in less than a week? Did you miss the 72% gain we took on Sunrise Solar Corp. (SSLR) in two days? Did you miss the 22% gain on Boyd Gaming (BYD) and the 20% gain on GlobalScape (GSB)? These were all booked this week. Don’t miss the next one - sign up for the free newsletter today.