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Alberto Abaterusso
Alberto Abaterusso
Articles (2534) 

A Trio of Stocks Trading Below Intrinsic Value

At their current share prices, these securities grant margins of safety

December 30, 2020 | About:

Investors who are screening the market in search of bargains may be interested in the following stocks, as their share prices are standing below the intrinsic value calculated by GuruFocus' free cash flow-based discounted cash flow calculator. These stocks also have optimistic recommendation ratings on Wall Street.

Albertsons Companies Inc

The first stock investors may be interested in is Albertsons Companies Inc (NYSE:ACI), a Boise, Idaho-based operator of grocery stores in the United States.

The stock traded at $16.64 per share at close on Tuesday, which is below the intrinsic value of $44.87 calculated from the DCF model, yielding a margin of safety of 62.92%.

The share price has risen by 7.7% over the past year for a market capitalization of $7.86 billion and a 52-week range of $12.91 to $16.78.

GuruFocus has assigned a score of 5 out of 10 to both the company's financial strength and its profitability.

On Wall Street, the stock has a median recommendation rating of buy and a target price of $20.39 per share.

The company's top fund holder is FEINBERG STEPHEN with 32.12% of shares outstanding.

Turkcell Iletisim Hizmetleri AS

The second stock investors may be interested in is Turkcell Iletisim Hizmetleri AS (NYSE:TKC), a Turkish telecommunication services provider.

The stock closed at $5.43 per share on Tuesday, which is lower than the DCF valuation of $10.59, yielding a 48.73% margin of safety.

The share price has declined by 6.4% over the past year, determining a market capitalization of $4.74 billion and a 52-week range of $4.36 to $6.36.

GuruFocus has assigned a score of 5 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 overweight and an average target price of $6.23 per share.

MORGAN STANLEY is the largest shareholder of the company, owning 1.07% of shares outstanding. It is followed by Oldfield Partners LLP with 0.58% of shares outstanding and Macquarie Group Ltd with 0.3% of shares outstanding.

Mr. Cooper Group Inc

The third stock investors may be interested in is Mr. Cooper Group Inc (NASDAQ:COOP), a Coppell, Texas-based financial services company providing various services for single-family residences in the U.S.

At close on Tuesday, the price was $29.92 per share, while the intrinsic value calculated from the DCF model is $278.67. Thus, the margin of safety is 89.26%.

The share price has risen by 139.2% over the past year, determining a market capitalization of $2.72 billion and a 52-week range of $4.31 to $31.12.

GuruFocus has assigned a score of 2 out of 10 to the company's financial strength rating and of 4 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $32.25 per share.

Among the top fund holders of the company, Kohlberg Kravis Roberts & Co. L.P. is the largest with 16.26% of shares outstanding. BlackRock Inc. and Leon Cooperman are the second and the third in the ranking, holding 11.83% and 5.12%, respectively.

Disclosure: I have no positions in any securities 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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