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Alberto Abaterusso
Alberto Abaterusso
Articles (2606) 

3 Stocks Trading Below the Peter Lynch Fair Value

These companies shine as unmissable opportunities

January 28, 2021 | About:

Investors looking for opportunities among growing companies may want to consider the following three stocks, as their share prices are trading lower than their Peter Lynch Fair Values.

The Peter Lynch Fair Value, which is based on the idea that the fair price-earnings (PE) ratio for a growing company matches its growth rate, stems from the combination of the following three components:

  • The stock's PEG ratio.
  • The stock's five-year Ebitda growth rate.
  • The stock's earnings per share (EPS) without non-recurring items (NRI) for the trailing twelve months (TTM) through the most recent quarter.

Gazprom Neft PJSC

The first stock that makes the cut is Gazprom Neft PJSC (GZPFY), a St. Petersburg, Russia-based crude oil and gas exploration and production company.

On Wednesday, Gazprom's share price closed at $21.70, significantly below its Peter Lynch Fair Value per share of $70.15, for a price-to-Peter-Lynch-Fair-Value ratio of about 0.31. This ranks higher than 80% of the 146 companies that operate in the oil and gas industry.

The stock has a market capitalization of $20.48 billion after a 40% decrease that occurred over the past year. The 52-week range is $15.01 to $37.18.

The stock has a GuruFocus financial strength rating of 5 out of 10 and a profitability rating of 9 out of 10.

As of January, the stock has a median recommendation rating of hold on Wall Street. The average target price is $23.46 per share.

Logitech International SA

The second stock that makes the cut is Logitech International SA (NASDAQ:LOGI), a Lausanne, Switzerland-based designer of products for connecting through computing, gaming, music, video and other global digital platforms.

On Wednesday, Logitech's share price closed at $28.93, well below the Peter Lynch Fair Value per share of $134.21, for a price-to-Peter-Lynch-Fair-Value ratio of about 0.80. This ranks higher than 78% of the 590 companies that operate in the hardware industry.

The stock has a market capitalization of $17.64 billion after a 129.67% increase that occurred over the past year. The 52-week range is $31.37 to $107.87.

The stock has a GuruFocus financial strength rating of 7 out of 10 and a profitability rating of 8 out of 10.

As of January, the stock has a median recommendation rating of overweight on Wall Street and an average target price of $115.74 per share.

Berry Global Group Inc

The third stock that makes the cut is Berry Global Group Inc (NYSE:BERY), an Evansville, Indiana-based provider of packaging and container solutions.

On Wednesday, Berry Global Group's share price closed at $49.19, substantially below its Peter Lynch Fair Value per share of $62.83, for a price-to-Peter-Lynch-Fair-Value ratio of about 0.78. This ranks higher than 76% of the 93 companies that operate in the packaging and containers industry.

The stock has a market capitalization of $6.59 billion after a nearly 7% increase that took place over the past year. The 52-week range is $25.00 to $57.94.

The stock has a GuruFocus financial strength rating of 4 out of 10 and a profitability rating of 4 out of 10.

As of January, the stock has a median recommendation rating of overweight on Wall Street. The average target price is $68.87 per share.

Disclosure: I have no position in any security 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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