Value investors could be interested in the following stocks, since their share prices are trading below their respective Peter Lynch earnings lines. This indicates they could be undervalued by the market. These stocks have also received positive ratings from sell-side analysts on Wall Street.
Gerdau SA
The first stock investors could be interested in is Gerdau SA (GGB, Financial), a Brazilian steel company with activities in Brazil, North America and other countries in South America.
The chart below shows the share price ($5.37 at close on March 15) is currently trading below the intrinsic value estimate of $25.53 calculated by the Peter Lynch earnings line.
The stock has fallen 48.62% over the past year through Tuesday for a market capitalization of $9.36 billion and a 52-week range of $4.18 to $7.26.
The stock has a median recommendation rating of buy on Wall Street and an average target price of $7.58.
GuruFocus has assigned a score of 9 out of 10 to the company's financial strength and 7 out of 10 to its profitability.
Capital International Investors, New Perspective Fund and New World Fund Inc. are among the company's largest shareholders. Capital International Investors holds 5.69% of its shares outstanding, New Perspective Fund holds 3.27% and New World Fund Inc. has 1.72%.
Organon & Co.
The second stock investors could be interested in is Organon & Co. (OGN, Financial), a Jersey City, New Jersey-based manufacturer of pharmaceuticals targeting multiple therapeutic areas, including contraceptive, fertility, immunology, oncology, cardiovascular, respiratory, dermatology and non-opioid based pain management products.
The chart below shows the share price ($32.42 as of March 15) is currently trading below the Peter Lynch earnings line's intrinsic value estimate of $80.04.
The stock has dropped 2.87% over the past year through Tuesday, determining a market capitalization of $8.23 billion and a 52-week range of $27.25 to $39.47.
Wall Street sell-side analysts have issued a median recommendation rating of overweight for this stock with an average target price of $40.
GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 5 out of 10 to its profitability.
BlackRock Inc., Vanguard Group Inc. and State Street Corp are among the company's largest shareholders. BlackRock Inc. holds 11.35% of its shares outstanding, Vanguard Group holds 6.67% and State Street Corp has 3.69%.
Mattel Inc.
The third stock investors could be interested in is Mattel, Inc. (MAT, Financial), an El Segundo, California-based children's entertainment company which is designing and producing toys and consumer products worldwide.
The chart below shows the share price ($22.65 at close on March 15) is trading below the Peter Lynch earnings line's intrinsic value estimate of $37.80.
The stock has risen by 10.58% over the past year through Tuesday for a market capitalization of $8.27 billion and a 52-week range of $17.94 to $25.71.
The stock has a median recommendation rating of overweight on Wall Street with an average target price of $31.96 per share.
GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and 7 out of 10 to its profitability.
PRIMECAP Management (Trades, Portfolio) is the largest shareholder of the company with 13.01% of the total outstanding shares. EdgePoint Investment Group Inc. and Vanguard Group Inc follow with 11.84% and 9.11%, respectively.
