Investors who are screening for value opportunities may want to consider the following stocks since their share prices are trading at a discount to the intrinsic value calculated by GuruFocus' earnings-based discounted cash flow calculator.
Wall Street sell-side analysts have also issued optimistic ratings for them, increasing the odds their shares will perform well.
Lam Research
The first stock that makes the cut is Lam Research Corp. (LRCX, Financial), a Fremont, California-based designer and manufacturer of semiconductor processing equipment, which is used to produce integrated circuits.
The stock closed at a price of $363.57 per share on Monday, which is lower than the intrinsic value of $430.73 from the discounted earnings model, for a margin of safety of 15.59%.
The share price increased 52.5% over the past year for a market capitalization of $52.75 billion and a 52-week range of $181.38 to $387.7.
GuruFocus has assigned a score of 6 out of 10 to the company's financial strength and of 9 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $404.9 per share.
Vanguard Group Inc. is the company's top institutional shareholder with 8.30% of shares outstanding, which is followed by BlackRock Inc. with 7.83% of shares outstanding and by Ameriprise Financial Inc. with 4.63% of shares outstanding.
Global Cord Blood
The second stock that qualifies is Global Cord Blood Corp. (CO, Financial), a Hong Kong-based provider of umbilical cord blood storage and supplemental services in China.
The stock closed at $3.48 per share on Monday, which places it lower than the intrinsic value of $8.19 from the discounted earnings model, yielding a 57.3% margin of safety.
The share price has declined by 38.3% over the past year, determining a market capitalization of $425.43 million and a 52-week range of $2.54 to $5.79.
GuruFocus has assigned a score of 7 out of 10 to the company's financial strength and its profitability.
On Wall Street, the stock has one buy recommendation rating and a target price of 15 yuan (about $2.24) per share.
Jim Simons' Renaissance Technologies is the company's largest shareholder with 3.14% of shares outstanding. Rock Springs Capital Management LP has 0.76% of shares outstanding, while Oasis Management Co. Ltd. owns 0.6%.
Rattler Midstream
The third stock that matches the criteria is Rattler Midstream LP (RTLR, Financial), a Midland, Texas-based owner and operator of midstream infrastructure assets located in the Permian Basin of West Texas.
Shares were trading at $6.24 at close on Monday, below the intrinsic value of $9.20 from the discounted earnings model, for a 29.89% margin of safety.
The share price has fallen by 59% over the past year, which has determined a market capitalization of $989.81 million and a 52-week range of $2.9 to $18.41.
GuruFocus has assigned a score of 4 out of 10 to both the company's financial strength and profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $9.50 per share.
Zimmer Partners LP dominates the group of the top fund holders of the company with 3.16% of shares outstanding, followed by Brookfield Asset Management Inc. with 2.56% of shares outstanding and Clearbridge Investments LLC with 2.08% of shares outstanding.
Disclosure: I have no positions in any securities mentioned.
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