A Trio of Undervalued Stocks to Consider

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Alberto Abaterusso
Apr 18, 2021
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Investors who are looking for value opportunities could be interested in the following stocks since their prices are trading at a discount to the intrinsic value calculated by GuruFocus' earnings-based discounted cash flow calculator.

Furthermore, Wall Street sell-side analysts have issued optimistic recommendation ratings for these stocks, suggesting a positive future in terms of share price performance.

Albertsons Companies

The first stock that meets the criteria is Albertsons Companies Inc. (

ACI, Financial), a Boise, Idaho-based operator of grocery stores in the U.S.

The stock traded at $20 per share on Friday, which is lower than the intrinsic value of $30.23 from the discounted earnings model, for a margin of safety of 33.84%.

The share price has increased by 29.5% over the past year for a market capitalization of $9.31 billion and a 52-week range of $12.91 to $20.62.

GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 5 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $20.35 per share.

Stephen Feinberg is the largest top fund holder of the company with 32.12% of shares outstanding. He is followed by Lubert-Adler Management Company LP with 12.49% of shares outstanding and Massachusetts Financial Services Co. with 1.28%.

Vistra

The second stock that qualifies is Vistra Corp (

VST, Financial), an Irving, Texas-based independent producer of electricity.

The stock closed at $17.8 per share on Friday, which stands lower than the intrinsic value of $19.04 from the discounted earnings model, yielding a 6.51% margin of safety.

The share price has risen 5.39% over the past year, determining a market capitalization of $8.57 billion and a 52-week range of $15.73 to $24.2.

GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 5 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $23.80 per share.

Vanguard Group is the company's top fund holder with 9.42% of shares outstanding. Next is FMR LLC with 6.33% of shares outstanding, followed by

Howard Marks (Trades, Portfolio) with 6.19%.

Jefferies Financial Group

The third stock that makes the cut is Jefferies Financial Group Inc. (

JEF, Financial), a New York-based financial conglomerate company with activities in North America and internationally.

The stock closed at $32.54 per share on Friday, which is below the intrinsic value of $65.97 from the discounted earnings model, yielding a 50.67% margin of safety.

The share price has increased by 158.25% over the past year, determining a market capitalization of $8.04 billion and a 52-week range of $11.82 to $34.86.

GuruFocus has assigned a score of 5 out of 10 to both the company's financial strength and its profitability.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $38 per share.

Vanguard Group leads the group of top fund holders of the company, owning 8.28% of shares outstanding. BlackRock is second in the group with 7% of shares outstanding, followed by

First Pacific Advisors (Trades, Portfolio) with 5.62%.

Disclosure: I have no positions in any securities mentioned.

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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