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Tiziano Frateschi
Tiziano Frateschi
Articles (2472)  | Author's Website |

5 Stocks Trading Below Peter Lynch Value

United Therapeutics tops the list

February 05, 2020 | About:

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 Feb. 5, the following companies are also trading with wide margins of safety and have had positive performances over the last 12 months.

United Therapeutics

United Therapeutics Corp. (NASDAQ:UTHR) was trading around $103 per share as of Feb. 5. The Peter Lynch fair value is $336.25, which suggests it is undervalued with a 65% margin of safety. The stock registered a positive three-month performance of 14.41%.

The company, which develops drugs for pulmonary arterial hypertension, has a market cap of $4.54 billion and an enterprise value of $3.95 billion.

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The stock is trading with a forward price-earnings ratio of 9.42. The share price is currently 19% below its 52-week high and 36% above its 52-week low. The price-book ratio is 1.65.

Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder with 7.32% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 1.46%, Charles Brandes (Trades, Portfolio) with 0.68% and Joel Greenblatt (Trades, Portfolio) with 0.11%.

Navistar International

Navistar International Corp. (NYSE:NAV) was trading around $37 per share as of Wednesday. The Peter Lynch fair value is $51.23, which suggests it is undervalued with a 26% margin of safety. Over the past three months, the stock has risen 14%.

The company, which manufactures trucks, buses and military vehicles, has a market cap of $3.70 billion and an enterprise value of $7.52 billion.

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The stock is trading with a price-earnings ratio of 16.84, which is higher than 58% of companies in the farm and heavy construction machinery industry. The share price is currently 5.50% below its 52-week high and 72.7% above its 52-week low.

The company's largest guru shareholder is Carl Icahn (Trades, Portfolio) with 16.86% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio)’s GAMCO Investors with 4.38% and Hotchkis & Wiley with 2.05%.

KB Home

KB Home (NYSE:KBH) was trading around $37.2 per share as of Feb.05. The Peter Lynch fair value gives the stock a fair price of $71.50, which suggests it is undervalued with a 48% margin of safety. Over the past three months, the stock has risen 6.96%.

The residential construction company has a market cap of $3.61 billion and an enterprise value of $4.90 billion.

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The stock is trading with a price-earnings ratio of 13, which is lower than 72% of companies in the homebuilding and C\construction industry. The share price is currently 6.63% below its 52-week high and 74.76% above its 52-week low.

Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder with 3.47% of outstanding shares, followed by Simons’ firm with 2.67%, Louis Moore Bacon (Trades, Portfolio) with 0.29%, Pioneer Investments (Trades, Portfolio) with 0.26% and Donald Smith (Trades, Portfolio) with 0.25%.

Brookfield Business Partners

Brookfield Business Partners LP (NYSE:BBU) was trading around $43 per share as of Wednesday. The Peter Lynch fair value is $62.71, which suggests the company is undervalued with a 32% margin of safety. Over the past three months, the stock has risen 7.30%.

The company has a market cap of $3.50 billion and an enterprise value of $29.33 billion.

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The stock is trading with a price-earnings ratio of 17.26, which is higher than 55% of companies in the conglomerates industry. The share price is currently 2.95% below its 52-week high and 8.53% above its 52-week low.

The company's largest guru shareholder is Simons’ firm with 0.17% of outstanding shares.

Grupo Aeroportuario del Centro Norte

Grupo Aeroportuario del Centro Norte SAB de CV (NASDAQ:OMAB) is trading around $61.83 per share as of Wednesday. The Peter Lynch fair value for the company is $82.09, which suggests it is undervalued with a 25% margin of safety. The stock registered a positive three-month performance of 14.10%.

The company, which operates airports in the central region of Mexico, has a market cap of $3.03 billion and an enterprise value of $3.12 billion.

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The stock is trading with a price-earnings ratio of 17.38, which is lower than 60% of companies in the transportation industry. The share price is currently 4.58% below its 52-week high and 46.62% above its 52-week low. The price-book ratio is 6.32.

Simons’ firm is the company's largest guru shareholder with 1.64% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.03%.

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.

Visit Tiziano Frateschi's Website


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