Get Premium to unlock powerful stock data

These 3 Stock Picks Seem to Be Underestimated by the Market

These stocks are potential value opportunities

Author's Avatar
Alberto Abaterusso
Jun 15, 2021

Summary

  • Markel Corp, Arch Capital Group Ltd and Jazz Pharmaceuticals PLC trade at a discount to the intrinsic value calculated by GuruFocus' earnings-based discounted cash flow (DCF) calculator
  • Wall Street has also issued positive recommendation ratings for these stocks
Article's Main Image

When screening the market for value opportunities, investors may want to consider the following stocks, since their prices are trading at a discount to the intrinsic value calculated by GuruFocus' earnings-based discounted cash flow (DCF) calculator.

Furthermore, sell-side analysts on Wall Street have issued positive recommendation ratings for these stocks, indicating expectations for high share price performance.

Markel Corp

The first stock that matches the above criteria is Markel Corp (MKL, Financial), a Glen Allen, Virginia-based financial services company providing coverage through specialty insurance products in North America, the United Kingdom and internationally.

The stock traded at $1,203.87 per share on Monday, which is lower than the intrinsic value of $2,924.30 from the DCF model, for a margin of safety of 58.83%.

The share price has risen by nearly 25% over the past year for a market capitalization of $16.56 billion and a 52-week range of $880.59 to $1,268.96.

1404787501746446336.png

GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $1,317.50 per share.

Vanguard Group Inc is the largest top fund holder of the company with 8.94% of shares outstanding. The investment firm is followed by BlackRock Inc. with 5.98% of shares outstanding and Principal Financial Group Inc with 4.61%.

Arch Capital Group Ltd

The second stock that matches the criteria is Arch Capital Group Ltd (ACGL, Financial), a Bermuda-based global provider of insurance, reinsurance and several other mortgage insurance products.

The stock traded at $39.14 per share at close on Monday, which stands lower than the intrinsic value of $76.4 from the DCF model, yielding a 48.77% margin of safety.

The share price has risen by 25.37% over the past year, determining a market capitalization of $15.80 billion and a 52-week range of $26.22 to $41.28.

1404787503793266688.png

GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $47.89 per share.

Artisan Partners Limited Partnership is the company's top fund holder with 8.84% of shares outstanding. The asset management company is followed by Vanguard Group Inc with 8.67% and

Ron Baron (Trades, Portfolio) with 5.31%.

Jazz Pharmaceuticals PLC

The third stock that matches the criteria is Jazz Pharmaceuticals PLC (JAZZ, Financial), a Dublin, Ireland-based biotech developer of treatments for various unmet medical needs in the United States, Europe and internationally, covering the areas of neuroscience and oncology.

The stock traded at $186.42 per share at close on Monday, which is below the intrinsic value of $333.98 from the discounted earnings model, yielding a 44.18% margin of safety.

The share price has risen by 67.07% over the past year, determining a market capitalization of $11.37 billion and a 52-week range of $101.81 to $187.65.

1404787505328381952.png

GuruFocus has assigned a score of 6 out of 10 to the company's financial strength and 9 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $206.35 per share.

BlackRock dominates the group of top fund holders of the company, owning 11.56% of shares outstanding. Vanguard Group is second in the group with 8.30% of shares outstanding, followed by FMR LLC with 5.82%.

Disclosure: I have no positions in any securities mentioned.

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

Disclosures

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Rating:
0 / 5 (0 votes)

Please Login to leave a comment