Value focused investors may want to consider the following stocks, since their share prices are trading at a discount to the intrinsic value calculated by GuruFocus' earnings-based discounted cash flow calculator.
Sell-side analysts on Wall Street have also issued optimistic ratings for these companies, indicating that their share prices are foreseen to trade higher over the months ahead.
Bio-Rad Laboratories Inc
The first stock that qualifies is Bio-Rad Laboratories Inc (BIO, Financial), a Hercules, California-based manufacturer and marketer of devices for clinical diagnostic and life science research organizations in North America and internationally.
The stock closed at a price of $555.78 per share on Tuesday, which is lower than the intrinsic value of $1,646.74 calculated from the discounted earnings model, for a margin of safety of 66.25%.
The share price increased 57.6% over the past year for a market capitalization of $16.81 billion and a 52-week range of $309.38 to $649.38.
GuruFocus has assigned a score of 8 out of 10 to the company's financial strength and of 6 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $658.75 per share.
Vanguard Group Inc. is the company's largest fund holder with 7.77% of shares outstanding, followed by BlackRock Inc. with 5.33% of shares outstanding and STATE STREET CORP with 3.12% of shares outstanding.
GCI Liberty Inc
The second stock matches the above listed criteria is GCI Liberty Inc (GLIBA, Financial), an Englewood, Colorado-based provider of various telecommunication services to residential and commercial customers, as well as public organizations and medical institutions in the U.S.
The stock closed at $85.29 per share on Tuesday, which is lower than the intrinsic value of $152.07 from the discounted earnings model, yielding a 43.91% margin of safety.
The share price has gained 19.2% over the past year, determining a market capitalization of $9 billion and a 52-week range of $26.51 to $90.52.
GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and of 5 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $101.33 per share.
PRICE T ROWE ASSOCIATES INC /MD/ is the company's largest fund holder with 9.59% of shares outstanding, followed by VANGUARD GROUP INC with 8.18% of shares outstanding and FPR PARTNERS LLC with 7.06% of shares outstanding.
Bank of New York Mellon Corp
The third stock that makes the cut is Bank of New York Mellon Corp (BK, Financial), a New York-based provider of various financial products and services to American and international clients.
The share price was trading at $39.22 at close on Tuesday, which is below the intrinsic value of $48.80 from the discounted earnings model, for a 19.63% margin of safety.
The share price has fallen nearly 20% over the past year, which has determined a market capitalization of $34.75 billion and a 52-week range of $26.4 to $51.60.
GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and of 5 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $44.03 per share.
Warren Buffett dominates the group of the top fund holders of the company with 8.17% of shares outstanding, followed by VANGUARD GROUP INC with 7.30% of shares outstanding and Dodge & Cox with 6.11% of shares outstanding.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- A Trio of Potential Bargain Stocks to Consider
- 3 Stocks Trading Below the GuruFocus Value Line
- 3 Magic Formula Stock Picks for the Value Investor
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