5 Undervalued Stocks Trading Below the Peter Lynch Value

Piedmont Office Realty Trust tops the list

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Jun 28, 2021
Summary
  • These stocks have margins of safety ranging from 13% to 49%
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According to the GuruFocus All-in-One Screener, a Premium feature, as of June 28, 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.

Nelnet

Nelnet Inc. (NNI) was trading around $76.69 per share as of June 28. The Peter Lynch fair value is $110.97, which suggests the stock is undervalued with a 31% margin of safety. Over the past 12 months, the stock has climbed 70.38%.

The company, which operates in student loan servicing and tuition payment processing, has a market cap of $2.95 billion and an enterprise value of $21.56 billion.

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The price-earnings ratio is 5.75. The share price is 3.18% below its 52-week high and 72.98% above its 52-week low.

The largest guru shareholder of the company is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.20% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.12% and Jeremy Grantham (Trades, Portfolio) with 0.01%.

Group 1 Automotive

Group 1 Automotive Inc. (GPI) was trading around $158.64 per share as of Monday. The Peter Lynch fair value is $278.32, which suggests it is undervalued with a 43% margin of safety. Over the past 12 months, the stock has climbed 166.36%.

The company, which operates in the vehicles and parts industry, has a market cap of $2.88 billion and an enterprise value of $5.31 billion.

The stock is trading with a price-earnings ratio of 8.22, which is higher than 92% of companies in the industry. The share price is 9.37% below its 52-week high and 184.33% above its 52-week low.

Grantham is the company's largest guru shareholder with 0.83% of outstanding shares, followed by HOTCHKIS & WILEY with 0.30% and Louis Moore Bacon (Trades, Portfolio) with 0.20%.

Tri Pointe Homes

Tri Pointe Homes Inc. (TPH) was trading around $21.29 per share. The Peter Lynch fair value gives the stock a price of $24.56, which suggests it is undervalued with a 13% margin of safety. The stock has registered a 52-week increase of 57.25%.

The American construction company has a market cap of $2.52 billion and an enterprise value of $3.34 billion.

The stock is trading with a price-earnings ratio of 8.37, which is higher than 75% of companies in the homebuilding and construction industry, and is currently 19.20% below its 52-week high and 65.94% above its 52-week low.

The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.74% of outstanding shares, followed by Grantham with 0.65% and HOTCHKIS & WILEY with 0.42%.

Brandywine Realty Trust

Brandywine Realty Trust (BDN) was trading around $14.21 per share as of Monday. The Peter Lynch fair value is $18.68, which suggests the company is undervalued with a 24% margin of safety. Over the past 52 weeks, the stock has increased 51.32%.

The real estate investment trust has a market cap of $2.43 billion and an enterprise value of $4.26 billion.

The stock is trading with a price-earnings ratio of 2.43, which is higher than 86% of companies in the REITs industry. The price is currently 19.20% below its 52-week high and 65.94% above its 52-week low.

Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder with 0.41% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.30% and Simons’ firm with 0.06%.

Piedmont Office Realty Trust

Piedmont Office Realty Trust Inc. (PMD) was trading around $19.05 per share as of Monday. The Peter Lynch fair value gives the stock a price of $37.61, which suggests it is undervalued with a 49% margin of safety.

Over the past 12 months, the stock has risen 26.05%. The real estate investment trust has a market cap of $2.36 billion and an enterprise value of $4.02 billion.

The stock is trading with a price-earnings ratio of 10.75, which is higher than 79% of companies in the industry. The share price is currently 6.39% below its 52-week high and 69.18% above its 52-week low.

Simons’ firm is the company's largest guru shareholder with 0.11% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.06% and Paul Tudor Jones (Trades, Portfolio) with 0.04%.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure