When looking for bargains, investors could be interested in the following stocks, since their share prices are trading below the intrinsic value calculated by GuruFocus' free cash flow-based discounted cash flow calculator.
These stocks also have optimistic recommendation ratings from sell-side analysts on Wall Street.
Good Times Restaurants Inc
The first stock that could be of interest to investors is Good Times Restaurants Inc (GTIM, Financial). Based in Lakewood, Colorado, Good Times Restaurants is the operator and franchisor of about 25 upscale quick-service drive-through dining restaurants and 37 full-service upscale casual dining restaurants.
The stock closed at $3.86 per share on Thursday, which is below the intrinsic value of $11.62 calculated from the DCF model, yielding a margin of safety of 66.78%.
The share price rose by nearly 233% over the past year, determining a market capitalization of $49.35 million and a 52-week range of $0.92 to $6.32.
GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 3 out of 10 to its profitability rating.
On Wall Street, the stock has one recommendation rating of buy with a target price of $5 per share.
Titan Machinery Inc
The second stock investors could be interested in is Titan Machinery Inc (TITN, Financial), a West Fargo, North Dakota-based owner and operator of agricultural and construction equipment chain stores.
The stock closed at $25.58 per share on Thursday, which is lower than the DCF valuation of $101.90, yielding a 74.90% margin of safety.
The share price has risen by nearly 200% over the past year, determining a market capitalization of $576.07 million and a 52-week range of $8.18 to $30.
GuruFocus has assigned a score of 5 out of 10 to both the company's financial strength and its profitability rating.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $29.33 per share.
Travelzoo
The third stock investors could be interested in is Travelzoo (TZOO, Financial), a New York-based operator of an internet media company providing travel, entertainment and local deals from travel and entertainment companies and local businesses all over the world.
The stock closed at $16.23 per share on Thursday, below the intrinsic value calculated from the DCF model of $76.93. The margin of safety stands at 78.90%.
The share price gained nearly 260% over the past year for a market capitalization of $186.55 million and a 52-week range of $4.19 to $19.83.
GuruFocus has assigned a score of 3 out of 10 to the company's financial strength and 6 out of 10 to its profitability rating.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $21 per share.
Disclosure: I have no positions in any securities mentioned.
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