6 Stocks Trading Below Peter Lynch Value

Leucadia National among undervalued companies

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Jan 11, 2018
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Several gurus are focusing on stocks whose Peter Lynch fair values are far above the current prices, according to the GuruFocus All-in-One Screener. The following stocks are trading with wide margins of safety and have positive performances over the past 12 months.

The Stars Group Inc. (TSG, Financial) is trading around $23 per share. The Peter Lynch value gives the stock a fair price of $33.15, which suggests it is undervalued with a margin of safety of 29%. The stock started its positive upward trend three months ago; it now registers a positive performance of 14.1%.

The gambling company operates online, mobile, and land-based casinos. It has a market cap of $3.47 billion and an enterprise value of $5.12 billion.

The stock is trading with a price-earnings (P/E) ratio of 17.65, which is higher than 60% of companies in the Global Gambling industry. The stock price is currently 2.29% below its 52-week high and 77.11% above its 52-week low. The price-book (P/B) ratio is 1.54.

With 10.02% of outstanding shares, David Einhorn (Trades, Portfolio) is the company's largest shareholder among the gurus. He is followed by Jim Simons (Trades, Portfolio) with 0.61% and Louis Moore Bacon (Trades, Portfolio) with 0.32%.

Cresud SACIF y A ADR (CRESY, Financial) is trading around $22 per share. The Peter Lynch value gives the stock a fair price of $34.32, suggesting it is undervalued with a margin of safety of 35%. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 22%.

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The company produces agricultural commodities, such as crops, beef and milk. It has a market cap of $1.1 billion and an enterprise value of $8.9 billion.

The stock is trading with a P/E ratio of 9.50, which is lower than 93% of companies in the Global Farm Products industry. The stock price is currently 6.37% below its 52-week high and 41,27% above its 52-week low. The P/B ratio is 1.27.

The company's largest guru shareholder is Ruane Cunniff (Trades, Portfolio) with 1.24% of outstanding shares.

Leucadia National Corp. (LUK, Financial) is trading around $27.6 per share. The Peter Lynch value gives the stock a fair price of $35.57, suggesting it is undervalued with a margin of safety of 22%. The stock started its positive upward trend three months ago; it has a positive performance of about 10.3%.

The company is engaged in investment banking and capital markets, commercial mortgage banking, asset management, as well as oil and gas exploration and development activities. It has a market cap of $9.83 billion.

The stock is trading with a P/E ratio of 17.81, which is higher than 64% of companies in the Global Packaged Foods industry. The stock price is currently 1.92% below its 52-week high and 24.16% above its 52-week low. The P/B ratio is 0.94.

First Pacific Advisors (Trades, Portfolio) is the company's largest guru shareholder with 5.41% of outstanding shares, followed by Steven Romick (Trades, Portfolio) with 4.33%, Charles Brandes (Trades, Portfolio) with 0.81% and Murray Stahl (Trades, Portfolio) with 0.11%.

Gildan Activewear Inc. (GIL, Financial) is trading at around $32 per share. The Peter Lynch value gives the stock a fair price of $38.55, suggesting it is undervalued with a margin of safety of 16%. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 6%.

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The apparel manufacturer in North America has a market cap of $7.18 billion and an enterprise value of $7.52 billion.

The stock is trading with a P/E ratio of 18.25, which is higher than 57% of companies in the Global Apparel Manufacturing industry. The stock price is currently 1.07% below its 52-week high and 37.92% above its 52-week low. The P/B ratio is 3.45.

The company's largest guru shareholder is Sarah Ketterer (Trades, Portfolio) with 6.03% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.81%, Private Capital (Trades, Portfolio) with 0.36% and Joel Greenblatt (Trades, Portfolio) with 0.06%.

Universal Forest Products Inc. (UFPI, Financial) is trading at around $38.14 per share. The Peter Lynch value gives the stock a fair price of $44.50, suggesting it is undervalued with a margin of safety of 14%. The stock started its positive upward trend three months ago; it registers a positive performance of about 15.2%.

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The company and its subsidiaries supply wood and wood-alternative products to markets. It has a market cap of $2.33 billion and an enterprise value of $2.49 billion.

The stock is trading with a P/E ratio of 21.39, which is lower than 60% of companies in the Global Lumber and Wood Production industry. The stock price is currently 3.64% below its 52-week high and 47.07% above its 52-week low. The P/B ratio is 2.49.

Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder with 1.3% of outstanding shares, followed by Simons with 0.43% and Jeremy Grantham (Trades, Portfolio) with 0.01%.

China Eastern Airlines Corp. Ltd. (CEA, Financial) is trading at around $40 per share. The Peter Lynch value gives the stock a fair price of $46.45, suggesting it is undervalued with a margin of safety of 16%. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 57.9%.

The air carrier operator in China has a market cap of $16.49 billion and an enterprise value of $20.75 billion.

The stock is trading with a P/E ratio of 21.11, which is lower than 67% of companies in the Global Airlines industry. The stock price is currently 5.92% below its 52-week high and 67.94% above its 52-week low. The P/B ratio is 2.20.

The company's largest guru shareholder is Simons with 0.01% of outstanding shares.

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