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Tiziano Frateschi
Tiziano Frateschi
Articles (2703)  | Author's Website |

6 Undervalued Stock Suggested by the Peter Lynch Fair Value

Hawaiian Holdings on the list

According to the GuruFocus All-in-One Screener, a Premium feature, several gurus are focusing on stocks whose Peter Lynch fair values are above their current price. As of Jan. 9, the following companies are trading with wide margins of safety and have had positive performances over the last 12 months, in addition to trading at below their Peter Lynch fair value.

Hawaiian Holdings Inc.

Hawaiian Holdings Inc. (HA) is trading around $29.20 per share as of Jan. 9. The Peter Lynch fair value is $66.31, which suggests the stock is undervalued with a 56% margin of safety. Over the past three months, the stock has registered a positive performance of 16.10%.

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The air transportation provider has a market cap of $1.30 billion and an enterprise value of $1.21 billion.

The stock is trading with a price-earnings ratio of 6.78, which is higher than 87% of competitors. The share price is currently 14.73% below its 52-week high and 27.50% above its 52-week low. The price-book ratio is 1.28.

The company's largest guru shareholder is Third Avenue Management (Trades, Portfolio) with 3.04% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 2.29% and PRIMECAP Management (Trades, Portfolio) with 2.05%.

Medifast Inc.

Medifast Inc. (MED) is trading around $112.00 per share as of Jan.9. The Peter Lynch fair value is $135.97, which suggests it is undervalued with a 18% margin of safety. The stock registered a positive three-month performance of 8.82%.

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The company, which provides products concerning weight loss and weight management, has a market cap of $1.30 billion and an enterprise value of $1.21 billion.

The stock is trading with a price-earnings ratio of 18.38, which is higher than 54% of companies in the personal services industry. The share price is currently 30.10% below its 52-week high and 67.55% above its 52-week low. The price-book ratio is 11.65.

Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder with 6.14% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.39%, Paul Tudor Jones (Trades, Portfolio) with 0.20% and Richard Snow (Trades, Portfolio) with 0.04%.

Patrick Industries Inc.

Patrick Industries Inc. (PATK) is trading around $53.60 per share as of Jan.9. The Peter Lynch fair value is $103.75, which suggests it is undervalued with a 51% margin of safety. Over the past three months, the stock has risen 25.36%.

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The company, which provides building products and materials, has a market cap of $1.21 billion and an enterprise value of $1.85 billion.

The stock is trading with a price-earnings ratio of 12.29, which is higher than 52% of companies in the construction industry. The share price is currently 6.10% below its 52-week high and 59.07% above its 52-week low. The price-book ratio is 2.53.

The company's largest guru shareholder is Royce with 1.13% of outstanding shares, followed by Jones with 0.04% and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.02%.

M/I Homes Inc.

M/I Homes Inc. (MHO) is trading around $41.53 per share as of Jan. 9. The Peter Lynch fair value gives the stock a fair price of $75.32, which suggests it is undervalued with a 45% margin of safety. Over the past three months, the stock has risen 9.84%.

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The American construction company has a market cap of $1.23 billion and an enterprise value of $2.07 billion. Over the past three months, the stock has registered a positive performance of 25.36%.

The stock is trading with a price-earnings ratio of 10.17, which is higher than 62% of companies in the homebuilding and construction industry. The share price is currently 5.91% below its 52-week high and 82.81% above its 52-week low. The price-book ratio is 1.22.

Donald Smith (Trades, Portfolio) is the company's largest guru shareholder with 4.96% of outstanding shares, followed by Royce with 1.19% and Ken Fisher (Trades, Portfolio) with 0.32%.

Big Lots Inc.

Big Lots Inc. (BIG) is trading around $28.50 per share as of Jan.9. The Peter Lynch fair value is $88.39, which suggests the company is undervalued with a 67% margin of safety. Over the past three months, the stock has risen 39.48%.

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The company, which operates discount retail stores, has a market cap of $1.14 billion and an enterprise value of $2.85 billion.

The stock is trading with a price-earnings ratio of 4.51, which is higher than 98% of companies in the retail industry. The share price is currently 27.25% below its 52-week high and 55.12% above its 52-week low.

The company's largest guru shareholder is Bestinfond (Trades, Portfolio) with 0.87% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.29%, Simons’ firm with 0.25%, Greenblatt and Jones with 0.21%.

Celestica Inc.

Celestica Inc. (CLS) is trading around $8.21 per share as of Jan.9. The Peter Lynch fair value for the company is $16.57, which suggests it is undervalued with a 50% margin of safety. The stock registered a positive three-month performance of 24.58%.

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The company, which provides a range of services such as design, engineering and assembly, has a market cap of $1.07 billion and an enterprise value of $1.35 billion.

The stock is trading with a price-earnings ratio of 8.1, which is higher than 90% of companies in the hardware industry. The share price is currently 16.87% below its 52-week high and 39.16% above its 52-week low. The price-book ratio is 0.76.

Richard Pzena (Trades, Portfolio)’s Pzena Investment Management is the company's largest guru shareholder with 3.66% of outstanding shares, followed by Smith with 3.03%, Charles Brandes (Trades, Portfolio) with 2.82% and Steven Cohen (Trades, Portfolio) with 0.02%.

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

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

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