1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (2394) 

3 Stocks Trading Below the Intrinsic Value

At current market valuations, these securities are offering compelling margins of safety

September 29, 2020 | About:

Investors who are screening the U.S. market in search of bargains may want to consider the following stocks, as their share prices are trading below the intrinsic value calculated by GuruFocus' free cash flow-based Discounted Cash Flow (DCF) calculator.

These stocks have also received optimistic recommendation ratings from sell-side analysts on Wall Street.

Urban One Inc

The first stock value investors may want to consider is Urban One Inc (NASDAQ:UONE), a Silver Spring, Maryland-based urban-oriented radio and cable TV broadcasting, digital and reach media company in the United States.

Urban One Inc traded at a price of $6.11 per share at close on Monday, standing lower than the value of $15.97 from the DCF model for a margin of safety of 61.74%.

The share price has risen by 215% over the past year for a market capitalization of $93.45 million and a 52-week range of $0.95 to $54.16.

GuruFocus has assigned a low score of 3 out of 10 to the company's financial strength and a positive score of 5 out of 10 to its profitability.

One sell-side analyst on Wall Street issued a buy recommendation rating for this stock and has produced a target price of $6 per share.

The company's top fund holder is Jim Simons with 0.23% of shares outstanding.

Lloyds Banking Group PLC

The second stock to consider is Lloyds Banking Group PLC (NYSE:LYG), a London-based bank.

Lloyds Banking Group PLC's share price was trading at $1.31 at close on Monday, which is lower than the DCF valuation of $6.16 for a 78.73% margin of safety.

The share price did not perform well over the past year as it lost 50.4%, which determined a market capitalization of $23.18 billion and a 52-week range of $1.17 to $3.58.

GuruFocus has assigned a low score of 3 out of 10 to both the company's financial strength and profitability.

On Wall Street, the stock has an overweight recommendation rating with an average target price of $1.82 per share.

With 0.21% of shares outstanding, JPMORGAN CHASE & CO (JPM) is the company's top fund holder, followed by Macquarie Group Ltd with 0.19% and Mondrian Investment Partners LTD with 0.14%.

Genworth Financial Inc

The third stock under consideration is Genworth Financial Inc (NYSE:GNW), a Richmond, Virginia-based financial services company providing its global clients with various insurance product solutions.

Genworth Financial Inc's share price was trading at $3.27 on Monday, which is below the DCF valuation of $54.25 for a margin of safety of 93.97%.

The share price has fallen by 25.7% over the past year for a market capitalization of $1.94 billion and a 52-week range of $1.87 to $4.93.

GuruFocus has assigned a positive score of 5 out of 10 to the company's financial strength and a moderate score of 4 out of 10 to its profitability.

On Wall Street, the stock has a hold recommendation rating with an average target price of $3 per share.

BlackRock Inc. dominates in the group of the top fund holders of the company, as it holds 11.51% of shares outstanding. It is followed by VANGUARD GROUP INC with 9.29% and STATE STREET CORP with 3.88%.

Disclosure: I have no position in any security mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master\\\'s Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)