5 Stocks Trading Below the Peter Lynch Value

LGI Homes makes the list

Author's Avatar
Apr 01, 2021
Article's Main Image

According to the GuruFocus All-in-One Screener, a Premium feature, as of April 1, 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.

Mercury General

Mercury General Corp. (MCY, Financial) was trading around $60.90 per share as of April 1. The Peter Lynch fair value is $142.31, which suggests the stock is undervalued with an 57% margin of safety. The stock has registered a 52-week increase of 69.81%.

The insurance holding company has a market cap of $3.40 billion and an enterprise value of $3.46 billion.

The price-earnings ratio is 9.06. The share price is 7.70% below its 52-week high and 69.81% above its 52-week low.

91bba03cc056a644ce8eb0f6eb8a0e7d.png

The largest guru shareholder of the company is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 3.61% of outstanding shares.

Worthington Industries

Worthington Industries Inc. (WOR, Financial) was trading around $67.32 per share as of Thursday. The Peter Lynch fair value is $160, which suggests it is undervalued with a 58% margin of safety. The stock has registered a 52-week increase of 195.89%.

The U.S. metals manufacturing company has a market cap of $3.49 billion and an enterprise value of $3.74 billion.

3b0cf5b347d1fe0822668ce484187e34.png

The stock is trading with a price-earnings ratio of 5.92, which is higher than 96% of companies in the industrial products industry. The share price is 10.78% below its 52-week high and 249.17% above its 52-week low.

Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder with 0.23% of outstanding shares, followed by Hotchkis & Wiley with 0.13% and Jeremy Grantham (Trades, Portfolio) with 0.12%.

Commercial Metals

Commercial Metals Co. (CMC, Financial) was trading around $30.14 per share. The Peter Lynch fair value gives the stock a price of $53, which suggests it is undervalued with an 43% margin of safety. Over the past 12 months, the stock has risen 119.79%.

The U.S. company, which operates steel mills, steel fabrication plants and metal recycling facilities, has a market cap of $3.62 billion and an enterprise value of $4.29 billion.

13e46e3140f1de9fd64fb7496e46190a.png

The stock is trading with a price-earnings ratio of 13.77, which is higher than 58% of companies in the industry, and is currently 1.37% below its 52-week high and 180.11% above its 52-week low.

The company's largest guru shareholder is Richard Snow (Trades, Portfolio) with 0.71% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.52% and Joel Greenblatt (Trades, Portfolio) with 0.15%.

LGI Homes

LGI Homes Inc. (LGIH, Financial) was trading around $145.94 per share as of Thursday. The Peter Lynch fair value is $311.24, which suggests the company is undervalued with a 53% margin of safety. Over the past 52 weeks, the stock has climbed 172.52%.

The company, which designs and builds new houses, has a market cap of $3.64 billion and an enterprise value of $4.15 billion.

4c155881450349deacf5adb2d6f6c384.png

The stock is trading with a price-earnings ratio of 11.48, which is higher than 60% of companies in the homebuilding and construction industry. The price is currently 0.92% below its 52-week high and 339.30% above its 52-week low.

Royce is the company's largest guru shareholder with 0.43% of outstanding shares, followed by Hotchkis & Wiley with 0.19% and Louis Moore Bacon (Trades, Portfolio) with 0.10%.

Ameris Bancorp

Ameris Bancorp (ABCB, Financial) was trading around $53.82 per share as of Thursday. The Peter Lynch fair value gives the stock a price of $77.49, which suggests it is undervalued with a 31% margin of safety. Over the past 12 months, the stock has climbed 147.12%.

The company, which provides business banking, personal banking, checking, savings and mobile banking services, has a market cap of $3.72 billion and an enterprise value of $2.17 billion.

The stock is trading with a price-earnings ratio of 14.15, which is lower than 54% of companies in the banks industry. The share price is currently 7.13% below its 52-week high and 213.61% above its 52-week low.

65734e6c606579bbca789102f3b78026.png

NWQ Managers (Trades, Portfolio) is the company's largest guru shareholder with 0.58% of outstanding shares, followed by Bernard Horn (Trades, Portfolio) with 0.16%, Mario Gabelli (Trades, Portfolio) with 0.10% and Ken Fisher (Trades, Portfolio) with 0.05%.

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

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.