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 wide margins of safety.
D.R. Horton Inc. (DHI) is trading at about $29 per share, and the Peter Lynch value gives the stock a fair price of $33.6, giving investors a margin of safety of 15%.
The stock is trading with a price-earnings (P/E) ratio of 12.85, higher than 54% of companies in the Global Residential Construction industry and is 16.67% below its 52-week high and 25.38% above its 52-week low. The price-sales (P/S) ratio is 0.93, and the forward P/E is 10.50.
D.R. Horton constructs and sells homes through its operating divisions in states and metropolitan markets of the U.S. under the names of D.R. Horton, America's Builder, Emerald Homes, Breland Homes, Express Homes and Regent Homes.
The stock is part of four gurus' portfolios: Ken Heebner (Trades, Portfolio) is the main shareholder among the gurus with a stake of 2.03% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 0.14%, Ray Dalio (Trades, Portfolio) with 0.08% and Scott Black (Trades, Portfolio) with 0.02%.
The Hartford Financial Services Group Inc. (HIG) is trading at about $43 per share, and the Peter Lynch value gives the stock a fair price of $48.3, giving investors a margin of safety of 10%.
The stock is trading with a P/E ratio of 13.26, lower than 54% of companies in the Global Insurance - Diversified industry and is 12.69% below its 52-week high and 18.06% above its 52-week low. The P/S ratio is 0.99, and the forward P/E is 10.20.
Hartford Financial Services Group is an insurance and financial services company. Its business segments including Property & Casualty Commercial, Consumer Markets, Property & Casualty Other Operations, Group Benefits and Mutual Funds.
The company is held by six gurus. PRIMECAP Management (Trades, Portfolio) is the largest shareholder among the gurus with a stake of 1.32% of outstanding shares followed by Andreas Halvorsen (Trades, Portfolio) with 0.93%, Richard Snow (Trades, Portfolio) with 0.21% and Jeremy Grantham (Trades, Portfolio) with 0.13%.
LyondellBasell Industries NVĂ‚ (LYB) is trading at about $80 per share, and the Peter Lynch value gives the stock a fair price of $139.5, giving investors a margin of safety of 43%.
The stock is trading with a P/E ratio of 8.57, higher than 86% of companies in the Global Specialty Chemicals industry and is 18.18% below its 52-week high and 15.09% above its 52-week low. The P/S ratio is 1.20, and the forward P/E is 8.64.
LyondellBasell is a plastics, chemical and refining company. The company produces polypropylene and polypropylene compounds, propylene oxide, polyethylene, ethylene and propylene. It also provides technology licenses.
The stock is part of six gurus' portfolios: Grantham is the main shareholder among the gurus with a stake of 0.36% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 0.27%, First Eagle Investment (Trades, Portfolio) with 0.25% and Dalio with 0.08%.
Scripps Networks Interactive Inc. Class AĂ‚ (SNI) is trading at about $61 per share, and the Peter Lynch value gives the stock a fair price of $88.3, giving investors a margin of safety of 31%.
The stock is trading with a P/E ratio of 10.42, higher than 82% of companies in the Global Broadcasting - TV industry and is 10.14% below its 52-week high and 21.04% above its 52-week low. The P/S ratio is 2.40, and the forward P/E is 11.44.
Scripps Networks Interactive develops lifestyle-oriented content for television and Internet with television and interactive brands by delivering entertaining and useful content for specifically defined topics of interest.
The stock is part of seven gurus' portfolios: Mason Hawkins (Trades, Portfolio) is the main shareholder among the gurus with a stake of 8.25% of outstanding shares followed by Pioneer Investments (Trades, Portfolio) with 1.14%, Tom Russo (Trades, Portfolio) with 0.91%, Mario Gabelli (Trades, Portfolio) with 0.79%, Joel Greenblatt (Trades, Portfolio) with 0.18% and Jim Simons (Trades, Portfolio) with 0.18%.
Regions Financial Corp. (RF) is trading at about $10 per share, and the Peter Lynch value gives the stock a fair price of $12, providing investors with a margin of safety of 17%.
The stock is trading with a P/E ratio of 12.84, higher than 54% of companies in the Global Banks - Regional - US industry and is 4.39% below its 52-week high and 43.00% above its 52-week low. The P/S ratio is 2.42, and the forward P/E is 11.24.
Regions Financial provides traditional commercial, retail and mortgage banking services and other financial services in the fields of asset management, wealth management, securities brokerage, insurance, trust services and other specialty financing.
The stock is part of five gurus' portfolios: Richard Pzena (Trades, Portfolio) is the main shareholder among the gurus with a stake of 2.42% of outstanding shares followed by HOTCHKIS & WILEY with 1.04%, Simons with 0.25% and Arnold Schneider (Trades, Portfolio) with 0.24%.
Lincoln National Corp. (LNC) is trading at about $49 per share, and the Peter Lynch value gives the stock a fair price of $62.7, giving investors a margin of safety of 23%.
The stock is trading with a P/E ratio of 11.67, higher than 67% of companies in the Global Insurance - Life industry and is 15.15% below its 52-week high and 60.64% above its 52-week low. The P/S ratio is 0.90, and the forward P/E is 7.14
Lincoln National is a holding company. The company through its subsidiaries operates multiple insurance and retirement businesses.
The stock is part of two gurus' portfolios: Pioneer Investments (Trades, Portfolio) is the main shareholder among the gurus with a stake of 0.47% of outstanding shares followed by Grantham with 0.28%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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