5 Stocks Trading Below the Peter Lynch Value

Perion makes the list

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Oct 08, 2020
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According to the GuruFocus All-in-One Screener, a Premium feature, as of Oct. 8, 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.

Perion

Perion Network Ltd. (PERI) was trading around $6.82 per share as of Oct. 8. The Peter Lynch fair value is $13.24, which suggests the stock is undervalued with a 48% margin of safety. The stock registered a 52-week increase 47.62%.

The technology company has a market cap of $179.56 million and an enterprise value of $136.39 million.

The stock is trading with a price-earnings ratio of 22.43. The share price is currently 29.69% below its 52-week high and 98.83% above its 52-week low. The price-book ratio is 1.07.

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Private Capital (Trades, Portfolio) is the company's largest guru shareholder with 7.98% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 7.25%.

L.B. Foster

L.B. Foster Co. (FSTR) was trading around $14.29 per share as of Thursday. The Peter Lynch fair value is $20.32, which suggests it is undervalued with a 30% margin of safety. Over the past 52 weeks, the stock has lost 26.57%.

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The company, which operates in the transportation industry, has a market cap of $153.45 million and an enterprise value of $216.27 million.

The stock is trading with a price-earnings ratio of 0.92 and is currently 31.17% below its 52-week high and 79.52% above its 52-week low.

The company's largest guru shareholder is Simons' firm with 6.20% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio)'s GAMCO Investors with 1.69%, Chuck Royce (Trades, Portfolio) with 0.89% and Charles Brandes (Trades, Portfolio) with 0.16%.

Bel Fuse

Bel Fuse Inc. (BELFB) was trading around $11.01 per share. The Peter Lynch fair value gives the stock a fair price of $41, which suggests it is undervalued with a 73% margin of safety. Over the past 12 months, the stock has declined 22.25%.

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The company, which manufactures electronic components, has a market cap of $137 million and an enterprise value of $213.90 million.

The stock is trading with a price-book ratio of 0.81 and is currently 48.79% below its 52-week high and 74.76% above its 52-week low.

Simons is the company's largest guru shareholder with 4.07% of outstanding shares, followed by Howard Marks (Trades, Portfolio) with 3.74% and Jeremy Grantham (Trades, Portfolio) with 0.16%.

The Eastern

The Eastern Co. (EML) was trading around $21.10 per share as of Thursday. The Peter Lynch fair value is $28.95, which suggests the company is undervalued with a 27% margin of safety. Over the past 52 weeks, the stock has declined 10.06%.

The company, which manufactures industrial hardware, security products and metal castings, has a market cap of $131.61 million and an enterprise value of $219.13 million.

The stock is trading with a price-earnings ratio of 13.02, which is higher than 75% of companies in the industrial products industry. The share price is currently 34% below its 52-week high and 38.09% above its 52-week low.

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The company's largest guru shareholders are Gabelli with 8.62% of outstanding shares and Simons' firm with 3.49%.

Pro-Dex

Pro-Dex Inc. (PDEX) was trading around $28.50 per share as of Thursday. The Peter Lynch fair value gives the stock a fair price of $38.50, which suggests it is undervalued with a 26% margin of safety. Over the past 12 months, the stock price has climbed 90.13%.

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The U.S. company, which manufactures powered rotary drive surgical and dental instruments, has a market cap of $109.39 Million and an enterprise value of $107.43 million.

The stock is trading with a price-earnings ratio of 18.51, which is higher than 75% of companies in the medical devices and instruments industry. The share price is currently 13.58% below its 52-week high and 150% above its 52-week low.

Simons' firm is the company's largest guru shareholder with 1.47% of outstanding shares.

Disclosure: I do not own any stocks mentioned in this article.

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