Viacom, AutoNation Among Undervalued Guru Stocks

Stocks trading below the Peter Lynch earnings line

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Mar 09, 2016
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According to GuruFocus' All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair value is far above the current price. The following stocks are trading with a wide margin of safety and at least five gurus are shareholders.

Viacom Inc. (VIAB) is trading at the price of $38, but the Peter Lynch earnings line gives the company a fair price of $69.91, giving the stock a margin of safety of 45%. It is trading with a PE ratio of 9.29 that is ranked lower than 85% of its competitors in the Global Media – Diversified industry. It is currently 47.20% below its 52-week high and 28.93% above its 52-week low.

The company reports a cash to debt of 0.03 that is far below the industry median of 1.67, with strong returns of ROE of 59.35% and ROA of 8.36% that are outperforming 79% of its competitors.

It is an entertainment content company that connects with audiences through television content across television, motion picture, online and mobile platforms in more than 165 countries and territories.

The stock is part of seven guru portfolios. Donald Yacktman (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.29% of outstanding shares, followed by Yacktman Fund (Trades, Portfolio) with 0.99%, NWQ Managers (Trades, Portfolio) with 0.72%, John Rogers (Trades, Portfolio) with 0.49%, Murray Stahl (Trades, Portfolio) with 0.25% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.22%.

YPF Sociedad Anonima (YPF) is trading at the price of $18.80, but the Peter Lynch earnings line gives the company a fair price of $32.55, giving the stock a margin of safety of 42%. It is trading with a PE ratio of 14.47 that is ranked lower than 69% of its competitors in the Global Oil & Gas Integrated industry, and is currently 41.22% below its 52-week high and 48.46% above its 52-week low.

The company reports a cash to debt of 0.14 that is below the industry median of 0.36, with strong returns of ROE of 9.36% and ROA of 3.38% that are outperforming 68% of its competitors.

It is an integrated oil and gas company incorporated in Spain. Its upstream operations consist of the exploration, development and production of crude oil, natural gas and LPG.

The company is held by five gurus:Â Kyle Bass (Trades, Portfolio) is the largest shareholder among the gurus with a stake of 0.38% of outstanding shares, followed by George Soros (Trades, Portfolio) with 0.31%, Howard Marks (Trades, Portfolio) with 0.2%, Jim Simons (Trades, Portfolio) with 0.07% and Jeremy Grantham (Trades, Portfolio) with 0.01%.

AutoNation Inc. (AN) is trading at the price of $52.72, but the Peter Lynch earnings line gives the company a fair price of $78.98, giving the stock a margin of safety of 33%. It is trading with a PE ratio of 13.59 that is ranked higher than 55% of its competitors in the Global Auto & Truck Dealerships industry and Manufacturing industry and is currently 21.90% below its 52-week high and 30.33% above its 52-week low.

The company reports a cash to debt of 0.03 that is far below the industry median of 0.66, with easy returns of ROE of 19.80% and ROA of 5.02% that are outperforming 58% of its competitors.

It is an automotive retailer in the U.S. It operates 276 new vehicle franchises from 232 stores.

The stock is part of six guru portfolios: Edward Lampert (Trades, Portfolio) is the main shareholder among the gurus with a stake of 6.33% of outstanding shares, followed by Murray Stahl (Trades, Portfolio) with 2.92%, Bill Gates (Trades, Portfolio) with 1.77%, Larry Robbins (Trades, Portfolio) with 1.34%, Mario Gabelli (Trades, Portfolio) with 0.95% and Steven Cohen (Trades, Portfolio) with 0.3%.

Mondelez International Inc. (MDLZ) is trading at the price of $42, but the Peter Lynch earnings line gives the company a fair price of $55.5, giving the stock a margin of safety of 24%. It is trading with a PE ratio of 9.49 that is ranked higher than 81% of its competitors in the Global Confectioners industry, and is currently 13.28% below its 52-week high and 24.02% above its 52-week low.

The company reports a cash to debt of 0.12 that is below the industry median of 0.62, with positive returns of ROE of 26.95% and ROA of 11.17% that are outperforming 85% of its competitors.

It manufactures and markets confectionery products. The company manufactures and markets food and beverage products for consumers in approximately 165 countries around the world.

The company is held by six gurus:Â Bill Ackman (Trades, Portfolio) is the largest shareholder among the gurus with a stake of 2.76% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.31%, Mario Gabelli (Trades, Portfolio) with 0.18%, Pioneer Investments (Trades, Portfolio) with 0.17%, John Burbank (Trades, Portfolio) with 0.08% and George Soros (Trades, Portfolio) with 0.07%.

PACCAR Inc. (PCAR) is trading at the price of $5.42, but the Peter Lynch earnings line gives the company a fair price of $67.88, giving the stock a margin of safety of 21%. It is trading with a PE ratio of 11.84 that is ranked higher than 64% of its competitors in the Global Truck Manufacturing industry, and is currently 21.95% below its 52-week high and 22.92% above its 52-week low.

The company reports a cash to debt of 0.40 that is above the industry median of 0.29, with strong returns of ROE of 22.92% and ROA of 7.64% that are over performing 83% of its competitors.

It has two industry segments: design, manufacture and distribution of light-, medium- and heavy-duty trucks and related aftermarket parts; and finance and leasing products and services provided to customers and dealers.

The stock is part of five gurus portfolios: Chris Davis (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.1% of outstanding shares, followed by HOTCHKIS & WILEY with 0.83%, NWQ Managers (Trades, Portfolio) with 0.32%, Joel Greenblatt (Trades, Portfolio) with 0.26% and Jim Simons (Trades, Portfolio) with 0.19%.

Amgen Inc. (AMGN) is trading at the price of $146, while the Peter Lynch earnings line gives the company a fair price of $163.99, giving the stock a margin of safety of 11%. It is trading with a PE ratio of 16.09 that is ranked higher than 69% of its competitors in the Global Biotechnology industry, and is currently 19.71% below its 52-week high and 12.21% above its 52-week low.

The company reports a cash to debt of 0.99 that is far below the industry median of 54.85, with strong returns of ROE of 25.55% and ROA of 9.84% that are outperforming 89% of its competitors.

It is a biotechnology company that discovers, develops, manufactures and delivers human therapeutics.Â

The company is held by seven gurus:Â PRIMECAP Management (Trades, Portfolio) is the largest shareholder among the gurus with a stake of 3.88% of outstanding shares, followed by Daniel Loeb (Trades, Portfolio) with 1.2%, Vanguard Health Care Fund (Trades, Portfolio) with 0.72%, First Eagle Investment (Trades, Portfolio) with 0.13%, Jeremy Grantham (Trades, Portfolio) with 0.05%, Joel Greenblatt (Trades, Portfolio) with 0.04% and Pioneer Investments (Trades, Portfolio) with 0.03%.

Eastman Chemical Co. (EMN) is trading at the price of $70, but the Peter Lynch earnings line gives the company a fair price of $74.88, giving the stock a margin of safety of 7%. It is trading with a PE ratio of 12.31 that is ranked higher than 65% of its competitors in the Global Chemicals industry, and is currently 16.96% below its 52-week high and 24.34% above its 52-week low.

The company reports a cash to debt of 0.04 that is far below the industry median of 0.71, with strong returns of ROE of 22.88% and ROA of 5.55% that are outperforming 61% of its competitors.

It is a specialty chemical company that produces a broad range of advanced materials, chemicals, and fibers that are found in products people use every day. It began business in 1920 for the purpose of producing chemicals for Eastman Kodak Company's photographic business.

The stock is part of six guru portfolios: First Eagle Investment (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.57% of outstanding shares, followed by Leon Cooperman (Trades, Portfolio) with 0.74%, Diamond Hill Capital (Trades, Portfolio) with 0.63%, RS Investment Management (Trades, Portfolio) with 0.18% and Joel Greenblatt (Trades, Portfolio) with 0.1%.