When looking for bargain opportunities, value investors may want to consider the following securities, as their share prices are trading near or below the intrinsic value estimated by the GuruFocus Value Line. The GF Value is a unique intrinsic value calculation from GuruFocus that utilizes the three components listed below:
- The stock's historical multiples, such as the price-earnings ratio, the price-sales ratio, the price-book ratio and the price-to-free cash flow ratio.
- A GuruFocus adjustment factor based on the past returns and growth of the company's business.
- Analyst estimates of future business performance.
Telefonica SA
The first stock investors may want to consider is Telefonica SA (TEF, Financial), a Spanish telecommunication services provider that operates in Europe and South America.
Telefonica SA's share price was $4.23 at close on Tuesday, while its GF Value stands at $4.36, resulting in a price-to-GF-Value ratio of 0.97 and a rating of fairly valued. The stock price is currently down 10.21% year-over-year, determining a market capitalization of $23.50 billion and a 52-week range of $3.89 to $5.17.
The price-earnings ratio is 2.1 (versus the industry median of 18.59) and the price-book ratio is 0.9 (versus the industry median of 2.22). Also, the price-sales ratio is 0.5 (versus the industry median of 1.8) and the price-to-free-cash-flow ratio is 3.99 (versus the industry median of 13.69).
The stock has a GuruFocus profitability rating of 7 out of 10.
Concerning the future business performance, sell-side analysts on Wall Street estimate that the earnings per share will increase by approximately 10.80% per annum over the next five years.
WidePoint Corporation
The second stock investors may want to consider is WidePoint Corporation (WYY, Financial), a Fairfax, Virginia-based provider of mobility management solutions to U.S. and European corporations as well as public and non-profit organizations.
WidePoint Corporation’s shares closed at $4.27 apiece on Tuesday while its GF Value is $4.18, resulting in a price-to-GF-Value ratio of 1.02 and a rating of fairly valued. Currently, the stock price is down 55.5% year-over-year for a market capitalization of $39.02 million and a 52-week range of $4.10 to $14.99.
The price-earnings ratio is 4.11 (versus the industry median of 29.13) and the price-book ratio is 0.91 (versus the industry median of 3.58). The price-sales ratio is 0.42 (versus the industry median of 3.61) and the price-to-free-cash-flow ratio is 22.95 (versus the industry median of 26.81).
The GuruFocus profitability rating is 4 out of 10.
Regarding future business performance, sell-side analysts on Wall Street estimate that the earnings per share will increase by approximately 20% per annum over the next five years.
Manulife Financial Corp
The third stock investors may want to consider is Manulife Financial Corp (MFC, Financial), a Canadian insurance and asset management company serving individuals and institutional clients in North America and internationally.
Manulife Financial Corp’s shares closed at $18.86 apiece on Tuesday while its GF Value was $17.43, resulting in a price-to-GF-Value ratio of 1.08 and a rating of fairly valued. The stock has risen by 4.65% over the past year, determining a market capitalization of $36.51 billion and a 52-week range of $16.90 to $22.25.
The price-earnings ratio is 7.12 (compared to the industry median of 11.15) and the price-book ratio is 0.94 (versus the industry median of 1.19). The price-sales ratio is 0.83 (compared to the industry median of 1.16) and the price-to-free-cash-flow ratio is 2.04.
GuruFocus has assigned the stock a profitability rating of 6 out of 10.
Concerning the future business performance, sell-side analysts on Wall Street predict that the earnings per share will increase 8.7% every year over the next five years.
AXIS Capital Holdings Limited
The fourth stock investors may want to consider is AXIS Capital Holdings Limited (AXS, Financial), a Bermuda-based global provider of specialty insurance and reinsurance products.
AXIS Capital Holdings Limited’s shares closed at $52.21 apiece on Tuesday while its GF Value was $53.88, resulting in a price-to-GF-Value ratio of 0.97 and a rating of fairly priced. The share price is almost unchanged compared to last year's levels, for a market capitalization of $4.43 billion and a 52-week range of $44.26 to $58.61.
The price-earnings ratio is 11.53 (compared to the industry median of 11.15) and the price-book ratio is 0.91 (versus the industry median of 1.19). The price-sales ratio is 0.87 (compared to the industry median of 1.16) and the price-to-free-cash-flow ratio is 4.41 (compared to the industry median of 8.66).
GuruFocus has assigned the stock a profitability rating of 6 out of 10.
Concerning the future business performance, sell-side analysts on Wall Street predict that the earnings per share will increase 12% every year over the next five years.
