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.
Read more here:
- 3 Stocks Trading Below Intrinsic Value Estimates
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- 3 Capital-Intensive Stocks to Consider
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