Value investors may want to have a look at the following stocks, as they are trading below the Peter Lynch earnings line, enhancing the likelihood of a value buy.
These stocks have also received positive recommendation ratings from analysts on Wall Street.
Hess Midstream LP
The first stock to consider is Hess Midstream LP (HESM, Financial), a Houston, Texas-based crude oil and natural gas midstream operator with assets in Texas, North Dakota and Minnesota.
The below chart shows that the stock price ($18.15 per share as of July 15) stands below the Peter Lynch earnings line ($19.05 as of March 28) for a margin of safety of nearly 5%.
The stock price has decreased by almost 12% over the past year through Wednesday for a market capitalization of $327.21 million and a 52-week range of $5.70 to $25.66.
Wall street analysts predict the stock will gain about 9% within a year, as the average target price is $19.80 per share. The stock holds a buy recommendation rating.
GuruFocus has assigned a score of 3 out of 10 to the financial strength of the company and 8 out of 10 to the profitability.
The company's top fund holder is Invesco Ltd. with 0.89% of shares outstanding, followed by KAYNE ANDERSON CAPITAL ADVISORS LP with 0.60% and FMR LLC with 0.40%.
TC Energy Corp
The second stock to consider is TC Energy Corp (TRP, Financial), a Canadian natural and liquified natural gas and oil midstream operator holding and operating assets in Canada and the U.S.
The below chart illustrates that the share price ($44.51 at close on July 15) is positioned below the Peter Lynch earnings line ($49.20 as of March 28), providing a margin of safety of 9.5%.
The stock price has underperformed during the past year through Wednesday, losing 11.4% for a market capitalization of $41.61 billion and a 52-week range of $32.37 to $57.92.
Wall Street analystes predict the share price will bounce back 18% up to the target price of $52.48, giving the stock an overweight recommendation rating.
GuruFocus has assigned a score of 3 out of 10 to the financial strength of the company and 7 out of 10 to the profitability.
The company's top fund holder is ROYAL BANK OF CANADA with 8.68% of shares outstanding, followed by BANK OF MONTREAL /CAN/ with 4.58% and PRICE T ROWE ASSOCIATES INC /MD/ with 4.30%.
TeleSystems PJSC
The third stock to consider is Mobile TeleSystems PJSC (MBT, Financial), a Russian domestic provider of telecommunication services.
The below chart says that the stock price ($8.97 per share at close on July 15) stands below the Peter Lynch earnings line ($12.90 as of March 28), offering a 30.5% margin of safety.
The stock price has increased by 5.2% over the past year through Wednesday for a market capitalization of $7.95 billion and a 52-week range of $6.20 to $11.
Wall Street has recommended an overweight rating for the stock with an average target price of 724.64 Russian roubles ($10.21), which reflects a 14% rise from Wednesday’s closing price.
GuruFocus has assigned a score of 4 out of 10 to the financial strength of the company and 9 out of 10 to the profitability.
With 4.93% of shares outstanding, Jim Simons is the company's top fund holder, followed by BlackRock Inc. with 4.04% and LAZARD ASSET MANAGEMENT LLC with 3.52%.
Disclosure: I have no position in any security mentioned.
Read more here:
- A Trio of Picks for the Value Investor
- 3 Stocks Trading at Tempting Valuations
- A Trio of Stocks Growing Earnings Fast
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