6 Stocks Trading Below Peter Lynch Value

Stocks trading with wide margins of safety

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Apr 06, 2017
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According to the 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 have positive performances over the past 12 months.

Flexible Solutions International Inc. (FSI, Financial) is trading around $1.6 per share. The Peter Lynch value gives the stock a fair price of $3.55 so the stock is undervalued with a margin of safety of 55%. The stock started its positive upward trend 12 weeks ago; it now registers a positive performance of 16.9%.

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Flexible Solutions, together with its subsidiaries, develops, manufactures and markets specialty chemicals that slow the evaporation of water.

The stock is trading with a price-earnings (P/E) ratio of 10.67, which is higher than 84% of companies in the Global Specialty Chemicals industry. The price is 32.92% below its 52-week high and 92.45% above its 52-week low. The price-book (P/B) ratio is 1.52.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio) with 2.95% of outstanding shares.

Highpower International Inc. (HPJ, Financial) is trading around $4.2 per share. The Peter Lynch value gives the stock a fair price of $10.5 so the stock is undervalued with a margin of safety of 60%. The stock started its positive upward trend 12 weeks ago; it now registers a positive performance of 90.7%.

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Highpower International and its subsidiaries manufacture and trade nickel metal hydride rechargeable batteries for both consumer and industrial applications.

The stock is trading with a P/E ratio of 9.99, which is higher than 89% of companies in the Global Electronic Components industry. The price is 13.13% below its 52-week high and 147.13% above its 52-week low. The P/B ratio is 1.40.

The company’s largest shareholder among the gurus is Simons with 5.02% of outstanding shares.

Issuer Direct Corp. (ISDR, Financial) is trading around $11.8 per share. The Peter Lynch value gives the stock a fair price of $13.5 so the stock is undervalued with a margin of safety of 13%. The stock started its positive upward trend 12 weeks ago; it now registers a positive performance of 32.1%.

Issuer Direct provides disclosure management solutions, shareholder communication tools and cloud-based compliance technologies to clients in the financial services industry, including brokerage firms, corporate issuers and mutual funds.

The stock is trading with a P/E ratio of 21.86, which is higher than 63% of companies in the Global Information Technology Services industry. The price is 126.44% above its 52-week low and 0.21% below its 52-week high. The P/S ratio is 2.90.

With 0.38% of outstanding shares, Simons is the company's largest investor among the gurus.

GAIN Capital Holdings Inc. (GCAP, Financial) is trading around $8.63 per share. The Peter Lynch value gives the stock a fair price of $18.75 so the stock is undervalued with a margin of safety of 39%. The stock started its positive upward trend 12 weeks ago; it now registers a positive performance of 27.2%.

GAIN Capital is engaged in providing trading services and solutions in over-the-counter and exchange-traded markets. It offers financial products, including foreign exchange and precious metals.

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The stock is trading with a P/E ratio of 12.86, which is higher than 71% of companies in the Global Capital Markets industry. The price is 1.49% below its 52-week high and 89.87% above its 52-week low. The P/B ratio is 1.41.

The company’s largest shareholder among the gurus is Simons with 1.22% of outstanding shares followed by Chuck Royce (Trades, Portfolio) with 0.91%.

Navigator Holdings Ltd. (NVGS, Financial) is trading around $14.40 per share. The Peter Lynch value gives the stock a fair price of $16.71 so the stock is undervalued with a margin of safety of 14%. The stock started its positive upward trend 12 weeks ago; it now registers a positive performance of 50.8%.

Navigator owns and operates a fleet of liquefied gas carriers. It transports liquefied petroleum gas, petrochemical gases and ammonia for energy companies, industrial users and commodity traders.

The stock is trading with a P/E ratio of 18.01, which is higher than 50% of companies in the Global Shipping and Ports industry. The price is 14.69% below its 52-week high and 122.18% above its 52-week low. The P/B ratio is 0.85.

With 39.44% of outstanding shares, Wilbur Ross (Trades, Portfolio) is the company's largest investor among the gurus followed by Murray Stahl (Trades, Portfolio) with 2% and Mario Gabelli (Trades, Portfolio) with 0.3%.

Ply Gem Holdings Inc. (PGEM, Financial) is trading around $18.65 per share. The Peter Lynch value gives the stock a fair price of $23.86 so the stock is undervalued with a margin of safety of 22%. The stock started its positive upward trend 12 weeks ago; it now registers a positive performance of 14.5%.

Ply Gem manufactures exterior building products in North America. Its products include siding, fencing, stone, windows and doors.

The stock is trading with a P/E ratio of 16.97, which is lower than 54% of companies in the Global Building Materials industry. The price is 6.75% below its 52-week high and 45.14% above its 52-week low. The P/B ratio is 310.82.

The company’s largest shareholder among the gurus is Simons with 1.21% of outstanding shares followed by Royce with 0.9%, Discovery Group I LLC with 0.54%, Richard Pzena (Trades, Portfolio) with 0.26% and Joel Greenblatt (Trades, Portfolio) with 0.02%.

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

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