According to GuruFocus' All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair values are far above the current prices. The following stocks are trading with wide margins of safety and at least five gurus are shareholders.
Akorn Inc. (AKRX) is trading at about $22 per share. The Peter Lynch value gives the stock a fair price of $37 so the stock is undervalued with a margin of safety of 41%.
The stock is trading with a price-earnings (P/E) ratio of 15.24, higher than 79% of companies in the Global Drug Manufacturers - Specialty & Generic industry, and is currently 40.68% below its 52-week high and 28.29% above its 52-week low. The price-sales (P/S) ratio is 2.55, and the forward P/E is 10.32.
The company manufactures and markets a full line of diagnostic and therapeutic ophthalmic pharmaceuticals as well as niche hospital drugs and injectable pharmaceuticals.
The stock is part of two gurus' portfolios. John Paulson (Trades, Portfolio) is the main shareholder among the gurus with a stake of 7.17% of outstanding shares followed by Columbia Wanger (Trades, Portfolio) with 0.85%.
Credit Acceptance Corp. (CACC) is trading at about $210 per share. The Peter Lynch value gives the stock a fair price of $286.14 so the stock is undervalued with a margin of safety of 27%.
The stock is trading with a P/E ratio of 13.26, higher than 55% of companies in the Global Credit Services industry, and is currently 6.21% below its 52-week high and 30.54% above its 52-week low. The P/S ratio is 4.63, and the forward P/E is12.00.
The company offers automobile dealers financing programs that enable them to sell vehicles to consumers regardless of their credit histories.
The stock is part of two gurus' portfolios. Seth Klarman (Trades, Portfolio) is the main shareholder among the gurus with a stake of 0.49% of outstanding shares followed by George Soros (Trades, Portfolio) with 0.17%.
AutoNation Inc. (AN) is trading at about $51 per share. The Peter Lynch value gives the stock a fair price of $67.06 so the stock is undervalued with a margin of safety of 24%.
The stock is trading with a P/E ratio of 13.13, higher than 67% of companies in the Global Auto & Truck Dealerships industry, and is currently 5.58% below its 52-week high and 30.17% above its 52-week low. The P/S ratio is 0.25, and the forward P/E is 11.75.
It is an automotive retailer in the U.S. The company offers automotive products and services including new vehicles, used vehicles, parts and accessories, automotive services, automotive finance and insurance products.
The stock is part of two gurus' portfolios. Edward Lampert (Trades, Portfolio) is the main shareholder among the gurus with a stake of 6.03% of outstanding shares followed by Murray Stahl (Trades, Portfolio) with 2.17%.
NVR Inc. (NVR) is trading at about $1,690 per share. The Peter Lynch value gives the stock a fair price of $2,448.25 so the stock is undervalued with a margin of safety of 31%.
The stock is trading with a P/E ratio of 17.27, lower than 58% of companies in the Global Residential Construction industry, and is currently 8.37% below its 52-week high and 15.66% above its 52-week low. The P/S ratio is 1.25, and the forward P/E is 13.68.
The company is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings. Through its subsidiaries it also operates in mortgage banking and title services business.
The stock is part of two gurus' portfolios. Alan Fournier (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.04% of outstanding shares followed by Ken Heebner (Trades, Portfolio) with 0.73%.
Jazz Pharmaceuticals PLCÂ (JAZZ) is trading at about $116 per share. The Peter Lynch value gives the stock a fair price of $143 so the stock is undervalued with a margin of safety of 19%.
The stock is trading with a P/E ratio of 20.30, higher than 65% of companies in the Global Biotechnology industry, and is currently 27.42% below its 52-week high and 21.21% above its 52-week low. The P/S ratio is 5.04, and the forward P/E is 10.96.
It is a specialty pharmaceutical company focused on improving patients' lives by identifying, developing and commercializing differentiated products that address unmet medical needs.
The stock is part of two gurus' portfolios. Jim Simons (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.53% of outstanding shares followed by Andreas Halvorsen (Trades, Portfolio) with 1.23%.
Michael Kors Holdings Ltd. (KORS) is trading at about $43 per share. The Peter Lynch value gives the stock a fair price of $109 so the stock is undervalued with a margin of safety of 61%.
The stock is trading with a P/E ratio of 9.93, higher than 79% of companies in the Global Apparel Manufacturing industry, and is currently 27.08% below its 52-week high and 24.55% above its 52-week low. The P/S ratio is 1.69, and the forward P/E is 9.04.
It is a designer, marketer, distributor and retailer of women's apparel and accessories and men's apparel. The company's business consists of retail, wholesale and licensing segments.
The stock is part of two gurus' portfolios. David Einhorn (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.87% of outstanding shares followed by Simons with 0.48%.
JetBlue Airways Corp. (JBLU) is trading at about $22.50 per share. The Peter Lynch value gives the stock a fair price of $56.50 so the stock is undervalued with a margin of safety of 61%.
The stock is trading with a P/E ratio of 9.98, lower than 59% of companies in the Global Airlines industry, and is currently 4.90% below its 52-week high and 52.51% above its 52-week low. The P/S ratio is 1.18, and the forward P/E is 11.00.
The company provides passenger airline services in the U.S. Its services include Partner Airlines, Getaways, Corporate, Cargo, Travel Agents, Special Assistance and Travel Insurance.
The stock is part of two gurus' portfolios. PRIMECAP Management (Trades, Portfolio) is the main shareholder among the gurus with a stake of 6.2% of outstanding shares followed by Simons with 2.08.
AerCap Holdings NVÂ (AER) is trading at about $43.49 per share. The Peter Lynch value gives the stock a fair price of $122.75 so the stock is undervalued with a margin of safety of 65%.
The stock is trading with a P/E ratio of 8.79, higher than 78% of companies in the Global Airports & Air Services industry, and is currently 5.25% below its 52-week high and 7.25% above its 52-week low. The P/S ratio is 1.55, and the forward P/E is 7.03.
The company provides aircraft leasing and aviation finance services. Its activities also include aircraft asset management, corporate services, remarketing of aircraft, collecting rental, maintenance payments and monitoring aircraft maintenance.
The company is held by six gurus. Einhorn is the largest shareholder among the gurus with a stake of 7.02% of outstanding shares followed by Donald Smith (Trades, Portfolio) with 5%, Leon Cooperman (Trades, Portfolio) with 2.23%, Richard Perry (Trades, Portfolio) with 0.98%, Jeremy Grantham (Trades, Portfolio) with 0.53% and Louis Moore Bacon (Trades, Portfolio) with 0.35%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
Start a free seven-day trial of Premium Membership to GuruFocus.
