5 Stocks Trading Below Peter Lynch Value

Denbury Resources tops the list

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Sep 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.

Denbury Resources Inc. (DNR, Financial) is trading around $5.14 per share. The Peter Lynch value gives the stock a fair price of $15.60, which suggests it is undervalued with a 67% margin of safety. Over the last three months, the stock has registered a positive performance of 28%.

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The company produces oil and gas. It has a market cap of $2.33 billion and an enterprise value of $5.17 billion.

The stock is trading with a price-earnings ratio of 10.54, which is higher than 78% of companies in the Global Oil and Gas E&P industry. The stock price is currently 12.46% below its 52-week high and 19.56% above its 52-week low. The price-book ratio is 2.61.

The company's largest guru shareholder is George Soros (Trades, Portfolio) with 1.02% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.24% and Jeremy Grantham (Trades, Portfolio) with 0.23%.

Sprint Corp. (S, Financial) is trading around $6 per share. The Peter Lynch value gives the stock a fair price of $30.95, which suggests it is undervalued with a 80% margin of safety. The stock registered a positive three-month performance of 15%.

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The company, which offers wireless and wireline communications products and services, has a market cap of $24.21 billion and an enterprise value of $57.06 billion.

The stock is trading with a price-earnings ratio of 3.36, which is higher than 97% of companies in the Global Telecom Services industry. The stock price is currently 28.77% below its 52-week high and 26.61% above its 52-week low. The price-book ratio is 0.86.

Dodge & Cox is the company's largest guru shareholder with 4.07% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.9%, Pioneer Investments (Trades, Portfolio) with 0.04% and Mario Gabelli (Trades, Portfolio) with 0.04%.

Comcast Corp. (CMCSA, Financial) is trading around $36.17 per share. The Peter Lynch value gives the stock a fair price of $39.97, which suggests it is undervalued with a 10% margin of safety. Over the last three months, the stock has risen 13%.

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The media and technology company has a market cap of $164.58 billion and an enterprise value of $224.49 billion.

The stock is trading with a price-earnings ratio of 7.13, which is higher than 92% of companies in the Global Pay TV industry. The stock price is currently 18.36% below its 52-week high and 18.04% above its 52-week low. The price-book ratio is 2.33.

The company's largest guru shareholder is Dodge & Cox with 2.88% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.77% and First Eagle Investment (Trades, Portfolio) with 0.69%.

Continental Building Products Inc. (CPBX) is trading around $37.70 per share. The Peter Lynch value gives the stock a fair price of $46.75, which suggests it is undervalued with a 19% margin of safety. Over the last three months, the stock has registered a positive performance of 21.8%.

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The company, which manufacturers gypsum wallboard and complementary products, has a market cap of $1.39 billion and an enterprise value of $1.57 billion.

The stock is trading with a price-earnings ratio of 20.16, which is lower than 58% of companies in the Global Building Materials industry. The stock price is currently 4.80% below its 52-week high and 57.08% above its 52-week low. The price-book ratio is 4.21.

Simons is the company's largest guru shareholder with 1.31% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.09% and Paul Tudor Jones (Trades, Portfolio) with 0.03%.

Herman Miller Inc. (MLHR, Financial) is trading around $37.6 per share. The Peter Lynch value gives the stock a fair price of $52.75, which suggests it is undervalued with a 29% margin of safety. Over the last three months, the stock has risen 14.6%.

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The company designs interior furnishings. It has a market cap of $2.27 billion and an enterprise value of $2.33 billion.

The stock is trading with a price-earnings ratio of 17.82, which is higher than 59% of companies in the Global Business Equipment industry. The stock price is currently 8.83% below its 52-week high and 27.38% above its 52-week low. The price-book ratio is 3.37.

The company's largest guru shareholder is Chuck Royce (Trades, Portfolio) with 3.28% of outstanding shares, followed by Tom Russo (Trades, Portfolio) with 0.33%, Hotchkis & Wiley with 0.17% and Grantham with 0.14%.

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