Value investors may want to consider the following securities, as their share prices are trading below the Peter Lynch earnings line, indicating they could be buying opportunities. These securities are also recommended by sell-side analysts on Wall Street.
Aptiv PLC
The first stock to consider is Aptiv PLC (APTV, Financial), an Irish global manufacturer and distributor of auto parts.
The below chart exhibits that the share price ($86.4 at close on Sept. 25) currently stands below the Peter Lynch earnings line ($98.55 as of June 26) for a margin safety of 12.33%.
The stock price didn't perform well during the past year through Friday, as it lost 1.2% for a market capitalization of $23.33 billion and a 52-week range of $29.22 to $99.04.
Wall Street sell-side analysts predict that the share price will continue to trade higher, gaining 9.5% up to the average target price of $94.71 per share. The stock holds an overweight recommendation rating.
GuruFocus has assigned a score of 5 out of 10 to the financial strength and 7 out of 10 to the profitability of the company.
VANGUARD GROUP INC dominates the group of top fund holders of the company as it owns 10.84% of shares outstanding. It is followed by PRICE T ROWE ASSOCIATES INC /MD/ owning 10.54% and by BlackRock Inc. owning 7.21%.
BHP Group PLC
The second stock to consider is BHP Group PLC (BBL, Financial), an Australian explorer, developer and producer of oil and gas and a miner of base and precious metals.
The below chart shows that the stock price ($43.34 per share as of Sept. 25) currently trades below the Peter Lynch earnings line ($47.1 as of June 28), generating a margin safety of 8%.
The stock price has increased only slightly over the past year through Friday, by about 1.2%, determining a market capitalization of $110.16 billion and a 52-week range of $23.64 to $48.67.
Wall Street sell-side analysts predict that the price of each American Depository Receipt (ADR) will outperform within a year, as the stock holds an overweight recommendation rating. The average target price is $38.65 per ADR.
GuruFocus has assigned a score of 6 out of 10 to the financial strength and 8 out of 10 to the profitability of the company.
Ken Fisher leads the group of the company's top fund holders, owning 0.25% of shares outstanding.
Boston Scientific Corp
The third stock to consider is Boston Scientific Corp (BSX, Financial), a Marlborough, Massachusetts-based global manufacturer and marketer of medical devices.
The below chart illustrates that the stock price ($37.34 per share at close on Sept. 25) is currently below the Peter Lynch earnings line ($42.3 as of June 28), yielding a margin safety of 11.73%.
The stock price did not perform well over the past year through Friday as it declined by about 8.2%, which determined a market capitalization of $53.42 billion and a 52-week range of $24.10 to $46.62.
The share price is expected to perform well within a year, gaining 24% from its close on Friday up to an average target price of $46.29. The stock has a buy recommendation rating on Wall Street.
GuruFocus has assigned a score of 5 out of 10 to the financial strength and 6 out of 10 to the profitability of the company.
BlackRock Inc. leads the group of the company's top fund holders, owning 8.68% of shares outstanding. It is followed by VANGUARD GROUP INC, owning 7.91%, and Capital World Investors, owning 5.90% of shares outstanding.
Disclosure: I have no position in any security mentioned.
Read more here:
- 3 Stock Picks Trading Below Their Earnings Power Values
- 3 Stocks With High Return on Equity Ratios
- A Trio of Net Net Working Capital Stocks to Consider
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