If in search of bargains, investors may be interested in the following securities, as their share prices are below the intrinsic value calculated by GuruFocus' free cash flow-based discounted cash flow calculator. These stocks also have optimistic recommendation ratings amid the community of Wall Street sell-side analysts.
H&E Equipment Services Inc
The first stock investors may be interested in is H&E Equipment Services Inc (HEES, Financial), a Baton Rouge, Los Angeles-based seller and supplier of industrial equipment services.
The stock traded at $31.40 per share at close on Friday, which is below the intrinsic value of $52.68 calculated from the DCF model, yielding a margin of safety of 40.39%.
The share price has risen by 9.07% over the past year for a market capitalization of $1.13 billion and a 52-week range of $9.12 to $32.75.
GuruFocus has assigned a score of 3 out of 10 to the company's financial strength rating and of 7 out of 10 to its profitability rating.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $32 per share.
The company's top fund holder is Vanguard Group Inc with 8.10% of shares outstanding. It is followed by BlackRock Inc. with 7.51% of shares outstanding and Clearbridge Investments, LLC with 6.83% of shares outstanding.
Encore Capital Group Inc
The second stock investors may be interested in is Encore Capital Group Inc (ECPG, Financial), a San Diego, California-based financial services company providing debt recovery solutions services to several businesses worldwide.
The stock closed at $30.24 per share on Friday, which is lower than the DCF valuation of $95.70, yielding a 68.40% margin of safety.
The share price has declined by nearly 16% over the past year, determining a market capitalization of $947.86 million and a 52-week range of $15.27 to $49.01.
GuruFocus has assigned a score of 3 out of 10 to the company's financial strength rating and of 8 out of 10 to its profitability rating.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $51.50 per share.
BlackRock Inc. is the largest shareholder of the company with 14.76% of shares outstanding. It is followed by Broad Run Investment Management, LLC with 10.26% of shares outstanding and Vanguard Group Inc with 9.76% of shares outstanding.
DXP Enterprises Inc
The third stock investors may be interested in is DXP Enterprises Inc (DXPE, Financial), a Houston, Texas-based distributor of maintenance, repair and operating products, equipment and related services to North American energy and industrial customers.
At close on Friday, the price was $27.04 per share, which is significantly below the intrinsic value calculated from the DCF model of $65.18. The margin of safety stands at 58.51%.
The share price has declined by 26.82% over the past year, determining a market capitalization of $481.06 million and a 52-week range of $10.44 to $36.94.
GuruFocus has assigned a score of 5 out of 10 to both the company's financial strength rating and its profitability rating.
On Wall Street, the stock has a recommendation rating of buy and a target price of $30 per share.
Amid the top fund holders of the company, BlackRock Inc. is the largest with 14.40% of shares outstanding. Nantahala Capital Management, LLC and American Century Companies Inc are the second and the third in the ranking, owning 8.43% and 6.05%, respectively.
Disclosure: I have no positions in any securities mentioned.
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