Value-oriented investors may want to consider the following securities since their shares 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 stocks, indicating that share prices are expected to rise over the coming months.
Cigna
The first stock that meets the criteria is Cigna Corp. (CI, Financial), a Bloomfield, Connecticut-based health care plans company.
The stock closed at $208.18 per share on Thursday, which is lower than the intrinsic value of $223.18 from the discounted earnings model, producing a 6.7% margin of safety.
The share price has increased by only 2.5% over the past year, determining a market capitalization of $75.21 billion and a 52-week range of $118.50 to $224.96.
GuruFocus assigned a score of 5 out of 10 to the company's financial strength and 6 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $257 per share.
T. Rowe Price Associates Inc is the company's largest shareholder with 8.24% of shares outstanding. Vanguard Group Inc has 7.90% of shares outstanding, while Blackrock Inc. holds 7.64%.
China Life Insurance
The second stock that qualifies is China Life Insurance Co. Ltd. (LFC, Financial), a Beijing-based provider of life insurance products and several other insurance policy solutions to individuals, households and businesses in China.
The stock closed at $11.06 per share on Thursday, which stands lower than the intrinsic value of $13.66 from the discounted earnings model, for a margin of safety of 19%.
The share price decreased by 19.72% over the past year for a market capitalization of $62.52 billion and a 52-week range of $8.27 to $14.70.
GuruFocus assigned a score of 6 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 an average target price of $26 per share.
Northern Trust Corp. is the company's top institutional shareholder with 0.24% of shares outstanding.
HCA Healthcare
The third stock that makes the cut is HCA Healthcare Inc. (HCA, Financial), a Nashville, Tennessee-based provider of several medical care services in the U.S.
The stock closed at $164.46 per share on Thursday, which stands lower than the intrinsic value of $195.81 from the discounted earnings model, yielding a margin of safety of 16%.
The share price increased by 11.2% over the past year, determining a market capitalization of $55.65 billion and a 52-week range of $58.38 to $166.87.
GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 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 $165.36 per share.
T. Rowe Price Associates leads the group of the top fund holders of the company with 6.78% of shares outstanding, followed by Vanguard Group with 6.17% and Wellington Management Company LLP with 5.62% of shares outstanding.
Disclosure: I have no positions in any securities mentioned.
Read more here:
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- 3 Stocks Trading Below the GuruFocus Value Line
- 3 Magic Formula Stock Picks for the Value Investor
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