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Alberto Abaterusso
Alberto Abaterusso
Articles (2375) 

3 Stocks Trading Below the Intrinsic Value

Compared to a free cash flow present value, their share prices are offering rich margins of safety

October 16, 2020 | About:

Investors who are screening for 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 analysts on Wall Street.

Hollysys Automation Technologies Ltd

The first stock to consider is Hollysys Automation Technologies Ltd (NASDAQ:HOLI), a Chinese provider of automation and control technologies in China, Southeast Asia and the Middle East.

The stock traded at a price of $12.16 per share at close on Thursday, which is below the value of $29.68 from the DCF model, yielding a margin of safety of 59.03%.

The share price decreased by 17.22% over the past year for a market capitalization of $736.13 million and a 52-week range of $9.52 to $17.59.

GuruFocus has assigned a score of 9 out of 10 to the company's financial strength and of 7 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $18.55 per share.

The company's top fund holder is Chris Davis with 11.66% of shares outstanding, followed by PRUDENTIAL PLC with 7.95% and M&G INVESTMENT MANAGEMENT LTD with 6.64%.

Gray Television Inc

The second stock to consider is Gray Television Inc (NYSE:GTN), an Atlanta, Georgia-based television broadcasting company.

The share price was trading at $13.19 at close on Thursday, which stands lower than the DCF valuation of $149.88, yielding a 91.20% margin of safety.

The share price fell by 20.43% over the past year, determining a market capitalization of $1.27 billion and a 52-week range of $8.53 to $23.07.

GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and of 8 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $21.14 per share.

Retirement Systems of Alabama and BlackRock Inc. are the largest top fund holders of the company, holding 7.17% and 6.87% of shares outstanding, respectively.

MarineMax Inc

The third stock under consideration is MarineMax Inc (NYSE:HZO), a Clearwater, Florida-based retailer of recreational boats and yachts in the U.S.

The share price traded at $29.08 at close on Thursday, which places below the DCF valuation of $93.29 for a 68.83% margin of safety.

The share price gained 79.4% over the past year, which has determined a market capitalization of $628.95 million and a 52-week range of $7.25 to $34.06.

GuruFocus has assigned a score of 7 out of 10 to both the company's financial strength and profitability.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $31.92 per share.

BlackRock Inc. and EAGLE ASSET MANAGEMENT INC are the top fund holders of the company with 17.11% and 10.46% of shares outstanding, respectively.

Disclosure: I have no position in any security mentioned.

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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

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