Value investors may want to have a look at the following stocks, as their share prices are trading below the Peter Lynch earnings line, indicating they could be buying opportunities. These stocks are also recommended by Wall Street sell-side analysts.
AMERISAFE Inc
The first stock to consider is AMERISAFE Inc (AMSF, Financial), a DeRidder, Louisiana-based provider of workers' compensation insurance packages for employers operating in hazardous industries such as agriculture, construction, manufacturing, oil and gas and trucking.
The below chart shows that the stock price ($65.44 per share as of Aug. 19) stands below the Peter Lynch earnings line ($70.05 as of June 28), yielding a margin safety of 6.6%.
The stock price has decreased by nearly 5% over the past year through Wednesday for a market capitalization of $1.27 billion and a 52-week range of $48.02 to $80.65.
Wall Street sell-side analysts predict that the stock price will rise by 18.7% within a year, as the average target price is $77.67 per share. The stock holds an overweight recommendation rating.
GuruFocus has assigned a score of 7 out of 10 to the financial strength of the company and 5 out of 10 to the profitability.
The company's top fund holder is BlackRock Inc. with 14.34% of shares outstanding, followed by Neuberger Berman Group LLC with 8.66% and VANGUARD GROUP INC with 6.40%.
Kimco Realty Corp
The second stock to consider is Kimco Realty Corp (KIM, Financial), a Jericho, New York-based real estate investment trust company focusing on U.S. shopping centers and mixed-use assets, which are mainly located in the top major metropolitan markets.
The below chart shows that the share price ($11.43 at close on Aug. 19) is currently trading below the Peter Lynch earnings line ($33.90 as of June 28) for a margin safety of 66.3%.
The stock price has performed poorly during the past year through Wednesday, going down 38.3% for a market capitalization of $4.94 billion and a 52-week range of $7.45 to $21.86.
Wall Street sell-side analysts predict that the share price will rebound, gaining 16% up to the target price of $13.26. They have assigned a hold recommendation rating.
GuruFocus has assigned a score of 4 out of 10 to the financial strength of the company and 6 out of 10 to the profitability.
The company's top fund holder is VANGUARD GROUP INC with 15.98% of shares outstanding, followed by BlackRock Inc. with 8.49% and COHEN & STEERS INC with 6.91%.
Lexington Realty Trust
The third stock to consider is Lexington Realty Trust (LXP, Financial), a New York-based real estate investment trust company owning single-tenant net-leased commercial properties located in the US.
The below chart illustrates that the stock price ($11.45 per share at close on Aug. 19) stands below the Peter Lynch earnings line ($15.60 as of June 28), providing a margin safety of 26.6%.
The stock price has risen by 9% over the past year through Wednesday for a market capitalization of $3.17 billion and a 52-week range of $7.86 to $12.08
Wall Street has recommended a hold rating for the stock with an average target price of $10.65 per share.
GuruFocus has assigned a score of 4 out of 10 to the financial strength of the company and 6 out of 10 to the profitability.
With 17.15% of shares outstanding, BlackRock Inc. is the company's top fund holder, followed by VANGUARD GROUP INC with 16.30% and FMR LLC with 9.68%.
Disclosure: I have no position in any security mentioned.
Read more here:
- 3 Stocks Trading Below the Earnings Power Value
- 3 Stocks with High Return on Equity Ratios
- These Stocks Are Trading Below the Graham Number
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