Value investors could be interested in the following three stocks, since their share prices are trading below their respective Peter Lynch earnings lines. This indicates they could be undervalued. Wall Street sell-side analysts have also issued positive ratings for these stocks.
Regions Financial Corp
The first stock investors could be interested in is Regions Financial Corp (RF, Financial), a U.S. regional bank based in Birmingham, Alabama that focuses on banking and bank-related services for individual and corporate customers located across the South, the Midwest and Texas.
The chart below illustrates that the share price ($19.50 at close on July 14) is currently trading below the Peter Lynch earnings line ($22.65).
The stock has gained 80.6% over the past year through Wednesday for a market capitalization of $18.75 billion and a 52-week range of $10.17 to $23.81.
The stock has a median recommendation rating of overweight on Wall Street and an average target price of $23.30. This reflects a 19.5% upside compared to Wednesday’s closing price. Analysts project earnings per share to increase nearly 45% per annum over the next five years.
GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 5 out of 10 to its profitability.
Vanguard Group Inc is the leader among top fund holders of the company, as it holds 11.82% of shares outstanding. The investment firm is followed by BlackRock Inc. with 8.60% and State Street Corp with 6.53%.
Celanese Corp
The second stock investors could be interested in is Celanese Corp. (CE, Financial), an Irving, Texas-based manufacturer of high-performance engineered polymers.
The chart below shows that the share price ($154.13 as of July 14) is currently trading well below the Peter Lynch earnings line ($270.30).
The stock has increased by 70.14% over the past year through Wednesday, determining a market capitalization of $17.36 billion and a 52-week range of $89.47 to $171.
Wall Street sell-side analysts have recommended a median rating of overweight for this stock with an average target price of $179.55, which mirrors a 16.5% upside from Wednesday’s closing price. Furthermore, analysts forecast that the earnings per share will increase by approximately 23.11% every year over the next five years.
GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and 7 out of 10 to its profitability.
Vanguard Group Inc is the largest top fund holder of the company, owning 12.06% of total shares outstanding. Wellington Management Group LLP and Dodge & Cox are following with 8.59% and 7.51%, respectively.
VICI Properties Inc
The third stock to consider is VICI Properties Inc (VICI, Financial), a New York-based real estate investment trust operating a portfolio of 29 gaming facilities, more than 19,000 hotel rooms, about 200 restaurants, bars and nightclubs as well as 34 acres of undeveloped land close by the Las Vegas Strip.
The chart below shows that currently, the share price ($31.27 at close on July 14) is still trading below the Peter Lynch earnings line ($33.60).
The stock has risen by 48.5% over the past year through Wednesday for a market capitalization of $16.8 billion and a 52-week range of $20.07 to $33.35.
The stock has a median recommendation rating of buy with an average target price of $34.74 per share, which reflects a more than 10% upside from Wednesday’s closing price. On Wall Street, the earnings per share is projected to increase by 9.7% on average every year over the next five years.
GuruFocus has assigned a score of 4 out of 10 to the financial strength and of 7 out of 10 to the profitability of the company.
Vanguard Group is the largest top fund holder with 14.23% of shares outstanding. It is followed by Capital International Investors with 10.08% and BlackRock with 9.13%.
Disclosure: I have no positions in any securities mentioned.
