Bargain Stocks: Cal-Maine Foods, Invesco

Undervalued stocks according to the DCF calculator

Author's Avatar
Jul 21, 2016
Article's Main Image

The following stocks are trading with wide margins of safety, according to the DCF calculator, and some of them have very low price-earnings ratios. GuruFocus' All-in-One Screener can be used to find similar stocks.

Syntel Inc. (SYNT) has a market cap of $3.85 billion and a GuruFocus business predictability of 4.5/5 stars. The stock has a price of $45.82 with a P/E ratio of 14.54 and according to the DCF calculator is trading with a margin of safety of 49%, since its fair value is $89.68. During the last 12 months the price of the stock has risen by 8% and is now 10.02% below its 52-week high and 11.57% above its 52-week low.

The company along with its subsidiaries is engaged in providing digital transformation, information technology and knowledge process outsourcing services. Its services include programming, systems integration, outsourcing and overall project management.

Its profitability & growth is rated 8/10 with ROE of 24.09% and ROA of 19.41% that are ranked higher than 89% of other companies in the Global Information Technology Services industry.

The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.94% of outstanding shares followed by Third Avenue Management (Trades, Portfolio) with 0.13%, Paul Tudor Jones (Trades, Portfolio) with 0.01% and Murray Stahl (Trades, Portfolio) with 0.01%.

Cal-Maine Foods Inc. (CALM) has a market cap of $2.14 billion and a GuruFocus business predictability of 2.5/5 stars. The stock has a price of $44.18 with a P/E ratio of 5.92 and according to the DCF calculator is trading with a margin of safety of 45%, since its fair value is $80.16 During the last 12 months the price of the stock has dropped by 18% and is now 30.15% below its 52-week high and 11.57% above its 52-week low.

The company is a producer and marketer of shell eggs in the U.S. Its main business is the production, grading, packaging, marketing and distribution of shell eggs.

Its profitability & growth is rated 9/10 with ROE of 45.75% and ROA of 34.32% that are ranked higher than 96% of other companies in the Global Packaged Foods industry.

Chuck Royce (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 0.84% of outstanding shares followed by John Hussman (Trades, Portfolio) with 0.52%, Jim Simons (Trades, Portfolio) with 0.27%, Chase Coleman (Trades, Portfolio) with 0.15% and Paul Tudor Jones (Trades, Portfolio) with 0.05%.

Invesco Ltd. (IVZ) has a market cap of $11.55 billion and a GuruFocus business predictability of 3/5 stars. The stock has a price of $27.68 with a P/E ratio of 13.58 and according to the DCF calculator is trading with a margin of safety of 44%, since its fair value is $49.55. During the last 12 months the price of the stock has dropped by 28% and is now 29.89% below its 52-week high.

It is an investment management company operating in more than 20 countries. It provides retail and institutional clients with an array of investment management capabilities. It has presence in the institutional and retail markets.

Its profitability & growth is rated 8/10 with ROE 10.52% and ROA of 3.70% that are ranked higher than 65% of other companies in the Global Asset Management industry.

The largest shareholder among the gurus is Richard Pzena (Trades, Portfolio) with 0.5% of outstanding shares followed by Jim Simons (Trades, Portfolio) with 0.15%, Pioneer Investments (Trades, Portfolio) with 0.1%, Robert Olstein (Trades, Portfolio) with 0.09% and First Pacific Advisors (Trades, Portfolio) with 0.05%.

Equity Residential (EQR) has a market cap of $25.52 billion. The stock has a price of $69.82 with a P/E ratio of 6.01 and according to the DCF calculator is trading with a margin of safety of 44%, since its fair value is $124.35. During the last 12 months the price of the stock has dropped by 7% and is now 15.26% below its 52-week high and 12.79% above its 52-week low.

It is a real estate investment trust engaged in the acquisition, development and management of apartment properties in the U.S. It owns and manages 400 properties located in Boston, New York, Washington D.C. and south Florida, among others.

Its profitability & growth is rated 8/10 with ROE of 40.41% and ROA of 18.82% that are ranked higher than 98% of other companies in the Global REIT - Residential industry.

Jim Simons (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 0.22% of outstanding shares followed by Ron Baron (Trades, Portfolio) with 0.13%, Chris Davis (Trades, Portfolio) with 0.06%, Pioneer Investments (Trades, Portfolio) with 0.05% and Manning & Napier Advisors Inc with 0.03%.

Taylor Devices Inc. (TAYD) has a market cap of $65.14 million and a GuruFocus business predictability of 4/5 stars. The stock has a price of $19.17 with a P/E ratio of 16.38 and according to the DCF calculator is trading with a margin of safety of 41%, since its fair value is $32.22. During the last 12 months the price of the stock has risen by 50% and is now 1.69% below its 52-week high and 5.13% above its 52-week low.

The company is engaged in the design, development, manufacture and marketing of shock absorption, rate control and energy storage devices for use in machinery, equipment and structures.

Its profitability & growth is rated 8/10 with ROE of 15.04% and ROA of 11.72% that are ranked higher than 82% of other companies in the Global Diversified Industrials industry.

Jim Simons (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 0.72% of outstanding shares.

Hibbett Sports Inc. (HIBB) has a market cap of $817.71 million and a GuruFocus business predictability of 5/5 stars. The stock has a price of $36.54 with a P/E ratio of 11.99 and according to the DCF calculator is trading with a margin of safety of 39%, since its fair value is $59.99 During the last 12 months the price of the stock has dropped by 20% and is now 21.44% below its 52-week high and 32.49% above its 52-week low.

The company is an operator of sporting goods retail stores in small to mid-sized markets mainly in the Southeast, Southwest, Mid-Atlantic and Midwest.

Its profitability & growth is rated 8/10 with ROE of 22.03% and ROA of 15.53% that are ranked higher than 85% of other companies in the Global Specialty Retail industry.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 0.64% of outstanding shares followed by Robert Olstein (Trades, Portfolio) with 0.23%, Joel Greenblatt (Trades, Portfolio) with 0.19% and Jeremy Grantham (Trades, Portfolio) with 0.04%.

ConnectOne Bancorp Inc. (CNOB) has a market cap of $494.35 million. The stock has a price of $16.38 with a P/E ratio of 11.97 and according to the DCF calculator is trading with a margin of safety of 42%, since its fair value is $28.03. During the last 12 months the price of the stock has dropped by 26% and is now 27.36% below its 52-week high and 10.23% above its 52-week low.

The company is a holding company for Union Center National Bank. It offers lending, depository and related financial services to commercial, industrial and governmental customers.

Its profitability & growth is rated 8/10 with ROE of 8.79% and ROA of 1.08% that are ranked higher than 54% of other companies in the Global Banks - Regional - US industry.

Jim Simons (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 2.55% of outstanding shares.

Disclosure: I do not own any shares of any stocks mentioned in this article.

Start a free 7-day trial of Premium Membership to GuruFocus.