As the world continues grappling with coronavirus fears, investors may wonder if there are still any good investing opportunities during the fourth and final quarter of 2020.
GuruFocus' popular value screens, a major Premium feature, track the number of stocks aligning with investing strategies taught by value legends like Benjamin Graham, Peter Lynch and Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio).
We are pleased to announce that GuruFocus now also tracks the number of new stocks for each of the value screens. Under the "Screeners" tab of the GuruFocus ribbon, green labels next to each value screen display the number of new stocks for each screen. Figure 1 illustrates this.
Figure 1
To view the new stocks from a specific screen, click on the desired screen from the list. The Screeners tab contains several columns, including predefined All-in-One Screener templates, user-defined screeners and the most popular value screens.
New Undervalued-Predictable stock: Discovery
As Figure 2 illustrates, the Undervalued-Predictable Screen displays Discovery Inc. (DISCK, Financial) as a new stock.
Figure 2
The Undervalued-Predictable Screen lists the stocks with high GuruFocus business predictability rank and are trading below intrinsic value based on discounted free cash flow models. According to the screener page, Discovery has a four-star business predictability rank and is trading at an 83% discount to its free cash flow valuation.
Gurus with large holdings in Discovery include Hotchkis & Wiley, John Paulson (Trades, Portfolio) and Jeremy Grantham (Trades, Portfolio).
New Peter Lynch Stock: Home Federal Bancorp Inc. of Louisiana
As Figure 3 illustrates, the Peter Lynch Screen also has one new stock: Home Federal Bancorp Inc. of Louisiana (HFBL, Financial).
Figure 3
A key feature of Lynch's value strategy is a price-earnings ratio less than 15. The Fidelity Magellan Fund manager developed a simple chart that compared a company's price line to an earnings line at 15 times earnings per share. According to Lynch, a stock is undervalued if the price trades below 15 times earnings and overvalued if the price trades above 15 times earnings.
GuruFocus ranks Home Federal Bancorp's valuation 7 out of 10: Although the bank's price-earnings ratio of 10.72 underperforms 61% of global competitors, the ratio is near a 10-year low of 9.26.
See also
Table 1 reports the number of stocks as of Friday making GuruFocus' popular value screens across all subscription regions.
| Screener | USA | Asia | Europe | Canada | UK/Ireland | Oceania | Latin America | Africa | India |
| Graham Net-Net | 75 | 424 | 137 | 25 | 22 | 7 | 3 | 6 | 156 |
| Undervalued Predictable | 36 | 169 | 137 | 11 | 48 | 5 | 51 | 8 | 31 |
| Buffett-Munger | 15 | 114 | 72 | 1 | 25 | 3 | 25 | 4 | 36 |
| Historical Low PS | 64 | 107 | 69 | 4 | 27 | 0 | 34 | 5 | 9 |
| Historical Low PB | 72 | 136 | 85 | 7 | 41 | 0 | 35 | 4 | 18 |
| Peter Lynch Screen | 32 | 37 | 20 | 0 | 8 | 0 | 6 | 6 | 4 |
| Dividend Stocks | 70 | 43 | 91 | 8 | 9 | 13 | 16 | 10 | 9 |
Table 1
Disclosure: No positions.
Read more here:
- US Market Remains Significantly Overvalued to Begin October
- Asian Markets Offer Good Market Returns to Start 4th Quarter
- Hennessy Japan Small Cap Fund's Top 3rd-Quarter Trades
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