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Alberto Abaterusso
Alberto Abaterusso
Articles (2616) 

3 Stocks Trading Below Intrinsic Value

These are potential deals based on the discounted cash flow calculator

February 22, 2021 | About:

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 (NASDAQ:FB), 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 (NYSE:UNH), 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 (NYSE:KKR), 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.

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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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