5 Undervalued Stocks Trading Below Peter Lynch Value

Sunnex makes the list

Author's Avatar
Jan 05, 2021
Article's Main Image

According to the GuruFocus All-in-One Screener, a Premium feature, as of Jan. 5, the following companies are trading below their Peter Lynch fair value with wide margins of safety and have had positive performances over the past 12 months.

Granite REIT

Granite Real Estate Investment Trust (GRP.U) was trading around $61.15 per share as of Jan. 5. The Peter Lynch fair value is $74.81, which suggests the stock is undervalued with a 18% margin of safety. The stock has registered a 52-week increase of 24.97%.

The real estate investment trust has a market cap of $3.77 billion and an enterprise value of $4.70 billion.

5c5d5012fde64704243c1b917ebbbe8a.png

The stock is trading with a price-book ratio of 1.24, which is lower than 66% of companies in the industry. The share price is currently 2.29% below its 52-week high and 117.46% above its 52-week low.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.31% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.06% and Prem Watsa (Trades, Portfolio) with 0.02%.

Radian Group

Radian Group Inc. (RDN) was trading around $20.25 per share as of Tuesday. The Peter Lynch fair value is $29.84, which suggests it is undervalued with a 32% margin of safety. Over the past 52 weeks, the stock has declined 17.53%.

The company, which provides mortgage insurance and services to the real estate and mortgage finance industries, has a market cap of $3.88 billion and an enterprise value of $5.34 billion.

70997841c41ae703ffef2df6f7b22dd6.png

The stock is trading with a price-earnings ratio of 10.02, which is higher than 64% of companies in the insurance industry. The share price is 21.78% below its 52-week high and 112.49% above its 52-week low.

Steven Cohen (Trades, Portfolio)'s Point72 Asset Management is the company's largest guru shareholder with 0.97% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.20% and Simons' firm with 0.18%.

Cia Paranaense De Energia

Cia Paranaense De Energia Copel (ELP) was trading around $14.30 per share. The Peter Lynch fair value gives the stock a price of $52, which suggests it is undervalued with an 73% margin of safety. Over the past 12 months, the stock has declined 12.01%.

The company, which operates in the utilities, regulated industry, has a market cap of $3.91 billion and an enterprise value of $5.28 billion.

4d9a924f1861b5dc392bb380e42b33e0.png

The stock is trading with a price-earnings ratio of 5.63, which is higher than 93% of companies in the industry. The share price is currently 21.21% below its 52-week high and 72.71% above its 52-week low.

The company's largest guru shareholder is Simons' firm with 0.16% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.04% and Jeremy Grantham (Trades, Portfolio) with 0.02%.

Synnex

Synnex Corp. (SNX) was trading around $81.44 per share as of Tuesday. The Peter Lynch fair value is $171.41, which suggests the company is undervalued with an 52% margin of safety. Over the past 52 weeks, the stock has risen 26.84%.

The company, which provides wholesale IT integration, distribution and outsourcing services, has a market cap of $4.20 billion and an enterprise value of $5.78 billion.

2a24aaa399dea381f1c900a6bea34808.png

The stock is trading with a price-book ratio of 1.01, which is higher than 88% of companies in the software industry. The price is currently 4.61% below its 52-week high and 212.27% above its 52-week low.

Sarah Ketterer (Trades, Portfolio) is the company's largest guru shareholder with 1.55% of outstanding shares, followed by David Einhorn (Trades, Portfolio) with 0.53%.

MGIC

MGIC Investment Corp. (MTG) was trading around $12.55 per share as of Tuesday. The Peter Lynch fair value gives the stock a price of $20.56, which suggests it is undervalued with a 39% margin of safety. Over the past 12 months, the stock has decreased 9.74%.

The mortgage insurance services provider has a market cap of $4.25 billion and an enterprise value of $5.11 billion.

898c37e88f1e1a73713ef8f810051202.png

The stock is trading with a price-earnings ratio of 9.44, which is higher than 68% of companies in the insurance industry. The share price is currently 17.65% below its 52-week high and 189% above its 52-week low.

Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder with 2.32% of outstanding shares, followed by Howard Marks (Trades, Portfolio) with 0.89% and George Soros (Trades, Portfolio) with 0.34%.

Disclosure: I do not own any stocks mentioned in this article.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.