Investors who are looking for value opportunities may want to have a look at the three stocks listed below, since their prices are trading at a discount to the intrinsic value calculated by GuruFocus' earnings-based discounted cash flow calculator.
These securities also hold optimistic recommendation ratings amid sell-side analysts on Wall Street.
Facebook Inc
The first stock that meets the criteria is Facebook Inc (FB, Financial), a Menlo Park, California-based social media giant.
The stock traded at $261.56 per share on Friday, which is lower than the intrinsic value of $287.53 from the discounted earnings model, for a margin of safety of 9.03%.
The share price rose by 30.31% over the past year for a market capitalization of $744.84 billion and a 52-week range of $137.10 to $304.67.
GuruFocus has assigned a score of 7 out of 10 to the company's financial strength and of 10 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $339.83 per share.
Vanguard Group Inc is the company's top fund holder with 6.42% of shares outstanding. It is followed by BlackRock Inc. with 5.61% of shares outstanding and FMR LLC with 4.35% of shares outstanding.
UnitedHealth Group Inc
The second stock that has the above characteristics is UnitedHealth Group Inc (UNH, Financial), a Minnetonka, Minnesota-based diversified healthcare company.
The stock closed at $324.58 per share on Friday, which stands lower than the intrinsic value of $327.99 from the discounted earnings model, yielding a 1.04% margin of safety.
The share price increased by 16.84% over the past year, determining a market capitalization of $307.97 billion and a 52-week range of $187.72 to $367.95.
GuruFocus has assigned a score of 6 out of 10 to the company's financial strength and of 9 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $399.65 per share.
Vanguard Group Inc is the company's top fund holder with 8.34% of shares outstanding. Next is BlackRock Inc. with 7.55% of shares outstanding, followed by FMR LLC with 5.51%.
KKR & Co Inc
The third stock that matches the criteria is KKR & Co Inc (KKR, Financial), a New York-based asset management firm focusing on private equity, real estate and several other industries.
The stock was trading at $46.77 per share at close on Friday, which is below the intrinsic value of $53.79 from the discounted earnings model, for a 13.05% margin of safety.
The share price increased by 47.87% over the past year, determining a market capitalization of $26.79 billion and a 52-week range of $15.55 to $49.29.
GuruFocus has assigned a score of 3 out of 10 to the company's financial strength and of 5 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $54.70 per share.
Vanguard Group Inc, ValueAct Holdings LP and BlackRock Inc. are the three largest top fund holders of the company, owning 8.30%, 6.64% and 6.01% of shares outstanding, respectively.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- 3 Low Price-to-Median-Price-Sales Stocks to Consider
- A Trio of Stocks Trading Near the GF Value Line
- 3 Magic Formula Stocks for the Value Investor
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