Discounted Stocks: Apple, Accenture, Aaron's

Peter Lynch fair values provide wide margins of safety

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Jan 03, 2017
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According to GuruFocus' All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair values are below the current prices.

Aaron's Inc. (AAN) is trading at about $32 per share, and the Peter Lynch value gives the stock a fair price of $28.6. It is overpriced by 14%.

It is trading with a price-earnings (P/E) ratio of 16.77, lower than 59% of the companies in the Global Rental & Leasing Services industry and is 6.34% below its 52-week high and 58.35% above its 52-week low. The price-sales (P/S) ratio is 0.73, and the price-book (P/B) is 1.55.

The company is a specialty retailer of furniture, consumer electronics, computers, appliances and household accessories. Its business segments are Sales and Lease Ownership, Progressive, HomeSmart, Franchise and Manufacturing.

The stock is part of two gurus' portfolios.Ă‚ Diamond Hill Capital (Trades, Portfolio) is the main shareholder among the gurus with a stake of 5.51% of outstanding shares followed by First Pacific Advisors (Trades, Portfolio) with 3.24%.

Advance Auto Parts Inc. (AAP) is trading at about $169 per share, and the Peter Lynch value gives the stock a fair price of $91.3. The stock is overpriced by 87%.

It is trading with a P/E ratio of 27.96, lower than 69% of the companies in the Global Specialty Retail industry and is 4.25% below its 52-week high and 29.40% above its 52-week low. The P/S ratio is 1.33, and the forward P/E is 22.08.

The company is a specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items mainly operating within the U.S.

Advance Auto Parts is held by five gurus.Ă‚ Steven Cohen (Trades, Portfolio) is the largest shareholder among the gurus with a stake of 1.5% of outstanding shares followed by Sarah Ketterer (Trades, Portfolio) with 1.06%, Pioneer Investments (Trades, Portfolio) with 0.64%, Manning & Napier Advisors Inc. with 0.26% and Louis Moore Bacon (Trades, Portfolio) with 0.07%.

Apple Inc. (AAPL) is trading at about $115.82 per share, and the Peter Lynch value gives the stock a fair price of $124.3, giving investors a 6% margin of safety.

It is trading with a P/E ratio of 14.08, higher than 65% of the companies in the Global Consumer Electronics industry, and 1.65% below its 52-week high and 30.47% above its 52-week low. The P/S ratio is 2.98, and the forward P/E is 13.0.

The company designs, manufactures and markets mobile communication and media devices, personal computers and portable digital music players and sells a variety of related software, services, accessories, networking solutions and third-party digital content.

The stock is part of 16 gurus' portfolios. Warren Buffett (Trades, Portfolio) is the main shareholder among the gurus with a stake of 0.29% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 0.21%, Pioneer Investments with 0.17%, Spiros Segalas (Trades, Portfolio) with 0.16%, Jeremy Grantham (Trades, Portfolio) with 0.11%, David Einhorn (Trades, Portfolio) with 0.1%, David Rolfe (Trades, Portfolio) with 0.08% and Chase Coleman (Trades, Portfolio) with 0.07%.

AbbVie Inc. (ABBV) is trading at about $62.62 per share, and the Peter Lynch value gives the stock a fair price of $55.5. The stock is overpriced by 13%.

It is trading with a P/E ratio of 19.96, higher than 74% of the companies in the Global Drug Manufacturers - Major industry and is 7.91% below its 52-week high and 23.70% above its 52-week low. The P/S ratio is 4.08, and the forward P/E is 11.31.

The company is a research-based biopharmaceutical company. Its products are used to treat diseases including rheumatoid arthritis, psoriasis, Crohn's disease, HIV, cystic fibrosis complications.

AbbVie is part of nine gurus' portfolios. Larry Robbins (Trades, Portfolio) is the main shareholder among the gurus with a stake of 0.37% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.12%, Stanley Druckenmiller (Trades, Portfolio) with 0.08%, Pioneer Investments with 0.07%, PRIMECAP Management (Trades, Portfolio) with 0.06%, Samuel Isaly (Trades, Portfolio) with 0.05%, Fisher with 0.04% and Joel Greenblatt (Trades, Portfolio) with 0.04%.

Arch Capital Group Ltd. (ACGL) is trading at about $86 per share, and the Peter Lynch value gives the stock a fair price of $78.9. The stock is overpriced by 10%.

It is trading with a P/E ratio of 16.40, lower than 79% of the companies in the Global Insurance - Reinsurance industry and is 2.62% below its 52-week high and 43.89% above its 52-week low. The P/S ratio is 2.46, and the forward P/E is 15.50.

The company provides insurance and reinsurance through its wholly owned subsidiaries. It provides a full range of property and casualty insurance and reinsurance lines.

Arch Capital Group is part of three gurus' portfolios. Ron Baron (Trades, Portfolio) is the main shareholder among the gurus with a stake of 7.15% of outstanding shares, followed by Simons with 0.89% and Cohen with 0.05%.

Accenture PLC Class AĂ‚ (ACN) is trading at about $117 per share, and the Peter Lynch value gives the stock a fair price of $101.3. The stock is overpriced by 16%.

It is trading with a P/E ratio of 17.35, higher than 68% of the companies in the Global Information Technology Services industry and is 6.83% below its 52-week high and 28.15% above its 52-week low. The P/S ratio is 2.21, and the forward P/E is 19.92.

It is a professional service company that is engaged in providing management consulting, technology and outsourcing services to clients.

The stock is part of three gurus' portfolios. Grantham is the main shareholder among the gurus with a stake of 0.47% of outstanding shares followed by MS Global Franchise Fund (Trades, Portfolio) with 0.05% and Simons with 0.04%.

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

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