Value investors may be interested in the following securities since their share prices are trading near or below the intrinsic value estimated by the GuruFocus Value Line.
The GF Value, a unique intrinsic value calculation from GuruFocus, is a combination of the following three components:
- The stock's historical multiples like the price-earnings ratio, the price-sales ratio, the price-book ratio and the price-to-free cash flow ratio.
- A GuruFocus adjustment factor, which is based on the past returns and growth of the company's operating activities.
- Estimates of future business performance.
Athene Holding
The first stock that meets the criteria is Athene Holding Ltd. (ATH, Financial), a Bermuda-based diversified insurer focusing on retirement savings products for individuals and institutions in the U.S. and Bermuda.
Athene Holding's share price was $49.64 at close on Friday while its GF Value stands at $48.71, resulting in a price-to-GF Value ratio of 1.02 and a rating of fairly valued.
The stock rose 208.13% over the past year, determining a market capitalization of $9.52 billion and a 52-week range of $15.67 to $55.39.
The price-earnings ratio is 7.11 (versus the industry median of 13.8) and the price-book ratio is 0.51 (versus the industry median of 1.14). Also, the price-sales ratio is 0.72 (versus the industry median of 1.21) and the price-to-free cash flow ratio is 2.64 (versus the industry median of 8.02). The stock has a GuruFocus profitability rating of 5 out of 10.
With regard to future business performance, sell-side analysts on Wall Street estimate that earnings per share will increase by an average annual growth rate of 9.34% over the next five years. As of March, the stock has one strong buy, eight buys and four hold recommendation ratings for an average target price of $57.63 per share.
RenaissanceRe Holdings
The second stock that qualifies is RenaissanceRe Holdings Ltd. (RNR, Financial), a Bermuda-based reinsurance and insurance company operating in the U.S. and internationally through the property, casualty and specialty segments.
RenaissanceRe Holdings' shares closed at $162.50 on Friday compared to its GF Value of $261.63, resulting in a price-to-GF Value ratio of 0.62. It has a rating of significantly undervalued.
The stock has a market capitalization of $8.24 billion as a result of a 23.13% increase that occurred over the past year. The 52-week range is $120.19 to $201.29.
The price-earnings ratio is 10.54 (versus the industry median of 13.8) and the price-book ratio is 1.17 (versus the industry median of 1.14). The price-sales ratio is 1.49 (versus the industry median of 1.21) and the price-to-free cash flow ratio is 3.88 (versus the industry median of 8.02). The GuruFocus profitability rating is 6 out of 10.
In regard to future business performance, sell-side analysts on Wall Street forecast that earnings per share will increase 23.61% on average every year over the next five years. As of March, the stock has two strong buy recommendation ratings, nine hold recommendation ratings and one underperform recommendation rating for an average target price of $190.50 per share.
Qurate Retail
The third stock to consider is Qurate Retail (QRTEA, Financial), an Englewood, Colorado-based retailer of various consumer products through live television shopping programs, internet and mobile applications to nearly 220 million households in North America and internationally.
Qurate Retail was trading at $12.51 per share on Friday compared to the GF Value of $13.29, resulting in a price-to-GF Value ratio of 0.94 and a rating of fairly valued.
The stock has a market capitalization of $5.15 billion as a result of a nearly 185% increase that occurred over the past year. The 52-week range is $3.01 to $13.76.
The price-earnings ratio is 4.37 (versus the industry median of 22.48) and the price-book ratio is 1.43 (compared to the industry median of 1.77). The price-sales ratio is 0.37 (compared to the industry median of 0.84) and the price-to-free cash flow ratio is 2.45 (versus the industry median of 11.12). GuruFocus has assigned the stock a profitability rating of 7 out of 10.
Concerning future business performance, sell-side analysts on Wall Street forecast that the earnings per share will increase by 5.40% on average per annum over the next five years. As of February, the stock has two buy recommendation ratings and four hold recommendation ratings for an average target price of $14.50 per share.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- 3 Magic Formula Stocks for the Value Investor
- A Trio of Stock Picks for the 'Buy and Hold' Approach
- 3 Net Current Asset Value Stocks
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