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Tiziano Frateschi
Tiziano Frateschi
Articles (2605)  | Author's Website |

5 Undervalued Stocks Trading Below the Peter Lynch Value

Biogen makes the list

According to the GuruFocus All-in-One Screener, a Premium feature, as of Oct. 1, the following companies are trading below their Peter Lynch fair value with wide margins of safety and have had positive performances over the past 12 months.

BHP

BHP Group PLC (BBL) was trading around $42.66 per share as of Oct. 1. The Peter Lynch fair value is $80.88, which suggests the stock is undervalued with a 47% margin of safety. The stock registered a 52-week increase of 5.18%.

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The provider of iron ore, copper, oil, gas and metallurgical coal has a market cap of $107.60 billion and an enterprise value of $126.20 billion.

The stock is trading with a price-earnings ratio of 13.56. The share price is currently 12.35% below its 52-week high and 80.46% above its 52-week low. The price-book ratio is 2.18.

Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder with 0.25% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.01%.

Sony

Sony Corp. (SNE) was trading around $76.75 per share as of Thursday. The Peter Lynch fair value is $85.30, which suggests it is undervalued with a 10% margin of safety. Over the past 52 weeks, the stock has returned 30.18%.

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The company has a market cap of $94.14 billion and an enterprise value of $86.02 billion.

The stock is trading with a price-earnings ratio of 15.20, which is higher than 67% of companies in the hardware industry. The share price is currently 8.79% below its 52-week high and 50.67% above its 52-week low.

The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 2.70% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio)'s GAMCO Investors with 0.20% and Steven Cohen (Trades, Portfolio)'s Point72 Asset Management with 0.09%.

Rio Tinto

Rio Tinto PLC (RIO) was trading around $60.39 per share. The Peter Lynch fair value gives the stock a fair price of $116.40, which suggests it is undervalued with a 48% margin of safety. Over the past 12 months, the stock has increased 20.37%.

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The company has a market cap of $75.29 billion and an enterprise value of $85.21 billion.

The stock is trading with a price-earnings ratio of 13.55, which is higher than 63% of companies in the industry. The share price is currently 9.26% below its 52-week high and 70.83% above its 52-week low.

Fisher is the company's largest guru shareholder with 0.92% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.13%.

Biogen

Biogen Inc. (BIIB) was trading around $283.68 per share as of Thursday. The Peter Lynch fair value is $516.54, which suggests the company is undervalued with a 45% margin of safety. Over the past 52 weeks, the stock has increased 21.85%.

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The company has a market cap of $44.91 billion and an enterprise value of $48.40 billion.

The stock is trading with a price-earnings ratio of 8.31, which is lower than 90% of companies in the drug manufacturers industry. The share price is currently 24.35% below its 52-week high and 29.12% above its 52-week low.

The company's largest guru shareholders are PRIMECAP Management (Trades, Portfolio) with 9.87% of outstanding shares, Simons' firm with 2.47% and Vanguard Health Care Fund (Trades, Portfolio) with 2.35%.

D.R. Horton

D.R. Horton Inc. (DHI) was trading around $75.63 per share as of Thursday. The Peter Lynch fair value gives the stock a fair price of $96.22, which suggests it is undervalued with a 22% margin of safety. Over the past 12 months, the stock price has climbed 44.81%.

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The U.S homebuilder has a market cap of $27.51 billion and an enterprise value of $29.77 billion.

The stock is trading with a price-earnings ratio of 13.68, which is higher than 71% of companies in the homebuilding and construction industry. The share price is currently 2.35% below its 52-week high and 196.47% above its 52-week low.

George Soros (Trades, Portfolio) is the company's largest guru shareholder with 0.49% of outstanding shares, followed by Glenn Greenberg (Trades, Portfolio) with 0.36% and Ken Heebner (Trades, Portfolio) with 0.25%.

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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