Value investors may want to consider the following stocks, as their share prices are trading below the Peter Lynch earnings line. This suggests that they could be undervalued. Sell-side analysts on Wall Street have also issued positive ratings for these stocks.
Enterprise Products Partners LP
The first stock to consider is Enterprise Products Partners LP (EPD, Financial), a Houston, Texas-based oil and gas midstream operator.
The below chart shows that the share price ($19.74 at close on Dec. 28) is currently trading 36% below the Peter Lynch earnings line.
The stock price lost 29.2% over the past year through Monday, determining a market capitalization of $43.09 billion and a 52-week range of $10.27 to $29.22.
Wall Street sell-side analysts predict that the share price will trade higher over the next 12 months, rising 28.3% up to the average target price of $25.32 per share. The stock has an average buy recommendation rating.
GuruFocus has assigned a score of 4 out of 10 to the financial strength and 7 out of 10 to the profitability of the company.
Blackstone Group L.P. dominates the group of top fund holders of the company as it holds 3.21% of shares outstanding. It is followed by Harvest Fund Advisors LLC with 2.57% and GOLDMAN SACHS GROUP INC with 1.91%.
CNOOC Ltd
The second stock to consider is CNOOC Ltd (CEO, Financial), a Hong Kong-based explorer and producer of oil and gas with operating activities primarily in China and North America.
The below chart shows that the stock price ($96.90 per share as of Dec. 28) is currently standing 50.63% below the Peter Lynch earnings line.
The stock price has decreased by 41.22% over the past year through Monday, determining a market capitalization of $43.26 billion and a 52-week range of $81.11 to $181.13.
Wall Street sell-side analysts forecast that the share price will outperform within a year, hitting a $137.03 average target price, which would be a 41.4% upside from Monday's closing price. The stock has an average buy recommendation rating.
GuruFocus has assigned a score of 6 out of 10 to the financial strength and 7 out of 10 to the profitability of the company.
Jim Simons and WELLINGTON MANAGEMENT GROUP LLP are amid the largest top fund holders of the company, owning 0.25% and 0.18%, respectively, of shares outstanding.
General Dynamics Corp
The third stock to consider is General Dynamics Corp (GD, Financial), a Falls Church, Virginia-based aerospace and defense company.
The below chart illustrates that the stock price ($148.72 per share at close on Dec. 28) is currently trading 10% below the Peter Lynch earnings line.
The stock price lost 15.5% over the past year through Monday, which determined a market capitalization of $42.68 billion and a 52-week range of $100.55 to $190.08.
The share price is expected to perform well over the next 12 months, as Wall Street gives the stock an average target price of $163.45 and an overweight recommendation rating.
GuruFocus has assigned a score of 5 out of 10 to the financial strength and of 7 out of 10 to the profitability of the company.
LONGVIEW ASSET MANAGEMENT, LLC leads the group of the company's top fund holders, owning 11.22% of shares outstanding. It is followed by VANGUARD GROUP INC with 7.18% and Newport Trust Co with 6.77%.
Disclosure: I have no position in any security mentioned.
Read more here:
- 3 Capital-Intensive Stocks to Consider
- 3 Stocks Trading Below Their Earnings Power Values
- 3 High Return on Equity Stock Picks to Consider
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