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 (HOLI, Financial), 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 (GTN, Financial), 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 (HZO, Financial), 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.
Read more here:
- 3 Stock Picks for a 'Buy and Hold' Approach
- A Trio of Capital-Intensive Stocks to Look At
- A Trio of Stocks Trading Below the Peter Lynch Earnings Line
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