5 Undervalued Stocks Below the Peter Lynch Value

Lazard makes the list

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Mar 15, 2021
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According to the GuruFocus All-in-One Screener, a Premium feature, as of March 15, the following companies are trading below their Peter Lynch fair values with wide margins of safety and have had positive performances over the past 12 months.

KB Home

KB Home (KBH) was trading around $44.43 per share as of March 15. The Peter Lynch fair value is $78.25, which suggests the stock is undervalued with a 43% margin of safety. The stock has registered a 52-week increase of 52.71%.

The U.S. construction company has a market cap of $4.39 billion and an enterprise value of $5.49 billion.

The price-earnings ratio is 14.20. The share price has been as high as $45.59 and as low as $9.82 in the last 52 weeks; it is currently 2.54% below its 52-week high and 352.44% above its 52-week low.

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The largest guru shareholder of the company is Ken Fisher (Trades, Portfolio) with 2.79% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.43% and Donald Smith & Co with 0.18%.

Lazard

Lazard Ltd. (LAZ) was trading around $43.10 per share as of Monday. The Peter Lynch fair value is $88, which suggests it is undervalued with a 51% margin of safety. Over the past 52 weeks, the stock has risen 36.22%.

The company has a market cap of $4.50 billion and an enterprise value of $4.35 billion.

The stock is trading with a price-earnings ratio of 12.24, which is higher than 66% of companies in the capital markets industry. The share price is 8.19% below its 52-week high and 105.53% above its 52-week low.

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John Rogers (Trades, Portfolio) is the company's largest guru shareholder with 5.28% of outstanding shares, followed by Mason Hawkins (Trades, Portfolio) with 4.69% and Fisher with 1.40%.

PennyMac

PennyMac Financial Services Inc. (PFSI) was trading around $65.96 per share. The Peter Lynch fair value gives the stock a price of $288.08, which suggests it is undervalued with an 77% margin of safety. Over the past 12 months, the stock has risen 84.62%.

The U.S. company, which operates in the mortgage lending business, has a market cap of $4.57 billion and an enterprise value of $30.87 billion.

The stock is trading with a price-earnings ratio of 3.20, which is higher than 96% of companies in the banks industry. The share price is currently 5.77% below its 52-week high and 402.17% above its 52-week low.

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The company's largest guru shareholder is George Soros (Trades, Portfolio) with 0.62% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.50%, Jeremy Grantham (Trades, Portfolio) with 0.17% and Lee Ainslie (Trades, Portfolio)'s Maverick Capital with 0.01%.

Turkcell

Turkcell Iletisim Hizmetleri AS (TKC) was trading around $5.52 per share as of Monday. The Peter Lynch fair value is $16.03, which suggests the company is undervalued with a 66% margin of safety. Over the past 52 weeks, the stock has risen 4.02%.

The Turkish company, which provides mobile telephone services, has a market cap of $4.82 billion and an enterprise value of $6.04 billion.

The stock is trading with a price-earnings ratio of 8.60, which is higher than 89% of companies in the telecommunication services industry. The price is currently 13.21% below its 52-week high and 26.61% above its 52-week low.b3d338f8b6b550f1a3b3b2da26b99633.png

Louisiana-Pacific

Louisiana-Pacific Corp. (LPX) was trading around $51.84 per share as of Monday. The Peter Lynch fair value gives the stock a price of $98.33, which suggests it is undervalued with a 47% margin of safety. Over the past 12 months, the stock has climbed 110.96%.

The oriented strand board producer has a market cap of $5.52 billion and an enterprise value of $5.38 billion.

The stock is trading with a price-earnings ratio of 11.55, which is higher than 65% of companies in the construction industry. The share price is currently 0.37% below its 52-week high and 299.69% above its 52-week low.

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Simons' firm is the company's largest guru shareholder with 0.58% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.27%, Pioneer Investments (Trades, Portfolio) with 0.25%, Mario Gabelli (Trades, Portfolio) with 0.16% and Paul Tudor Jones (Trades, Portfolio) with 0.08%.

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

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