When searching for bargains, investors may want to consider the following stocks since their share prices are trading below the intrinsic value calculated by GuruFocus' free cash flow-based discounted cash flow calculator. These stocks also have optimistic recommendation ratings from sell-side analysts on Wall Street.
Telefonica
The first stock investors could be interested in is Telefonica SA (TEF, Financial), a Spanish telecommunication services provider in Europe and South America.
The stock closed at $4.96 per share on Wednesday, which is below the intrinsic value of $14.03 calculated from the DCF model, yielding a margin of safety of 64.65%.
The share price was quite flat when its performance is considered over the past year, determining a market capitalization of $27.41 billion and a 52-week range of $3.22 to $5.69.
GuruFocus has assigned a score of 3 out of 10 to the company's financial strength and 6 out of 10 to its profitability rating.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of approximately $6 per share.
Morgan Stanley, Parametric Portfolio Associates LLC and Northern Trust Corp are amid the largest fund holders of the company, owning 0.41%, 0.09% and 0.07% of shares outstanding.
Raymond James Financial
The second stock investors may be interested in is Raymond James Financial Inc. (RJF, Financial), the Saint Petersburg, Florida-based financial services company.
The stock closed at $120.28 per share on Wednesday, which is lower than the DCF valuation of $404.37, yielding a 70.25% margin of safety.
The share price has risen by nearly 80% over the past year, determining a market capitalization of $16.56 billion and a 52-week range of $54.21 to $124.02.
GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 6 out of 10 to its profitability rating.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $121.78 per share.
BlackRock Inc. is the largest shareholder of the company with 10.26% of shares outstanding. It is followed by Vanguard Group Inc. with 9.48% of shares outstanding and State Street Corp. with 3.77% of shares outstanding.
Vistra
The third stock investors may be interested in is Vistra Corp. (VST, Financial), an Irving, Texas-based independent producer of power.
The stock closed at $17.29 per share on Wednesday, below the intrinsic value calculated from the DCF model of $45.29. The margin of safety stands at 61.82%.
The share price has increased by nearly 22% over the past year, determining a market capitalization of $8.36 billion and a 52-week range of $12.34 to $24.20.
GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 5 out of 10 to its profitability rating.
On Wall Street, the stock has a recommendation rating of buy and an average target price of $25 per share.
Vanguard Group Inc. is the largest top fund holder of the company with 9.42% of shares outstanding. FMR LLC and Howard Marks (Trades, Portfolio) are the second and third-largest shareholders with 6.33% and 6.19%.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- A Trio of Capital-Intensive Stocks to Consider
- 3 Stocks Trading Below Their Earnings Power Values
- 3 Stocks Trading Below the Peter Lynch Earnings Line
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
