When screening the market 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.
Additionally, Wall Street has issued positive recommendation ratings for these companies, meaning their share prices are expected to trade higher over the coming months.
Asbury Automotive Group
The first stock investors could be interested in is Asbury Automotive Group Inc. (ABG, Financial), a Duluth, Georgia-based automotive retailer of new and used vehicles, spare parts and related services in the U.S.
The stock traded at $184.2 per share at close on Friday, which is below the intrinsic value of $520.17 calculated from the DCF model, yielding a margin safety of 68.38%.
The share price has risen by nearly 87.47% over the past year, determining a market capitalization of $3.56 billion and a 52-week range of $91.52 to $216.88.
GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 8 out of 10 to its profitability rating.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $220.25 per share.
Rush Enterprises
The second stock investors could be interested in is Rush Enterprises Inc. (RUSHA, Financial) (RUSHB, Financial), a New Braunfels, Texas-based retailer of commercial vehicles.
Over the past year, the share price for class A common stock has gained 66.4%, fluctuating in a 52-week range of $24.75 to $51.98. The share price for class B common stock has gained 81.31%, fluctuating in a 52-week range of $20.57 to $47.10.
Shares traded at $44.7 per unit of class A common stock and $39.5 per unit of class B common stock at close on Friday, which are lower than the respective DCF valuations of $143.17 and $126.3, yielding margins of safety of 68.76% and 72.44%.
Over the past year, the share price for class A common stock has gained 53.05%, fluctuating in a 52-week range of $28.95 to $51.98. The share price for class B common stock has gained 61.63%, fluctuating in a 52-week range of $24.18 to $47.10.
Class A common stock over the past year:
Class B common stock over the past year:
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 $57 per share.
BlueLinx Holdings
The third stock investors could be interested in is BlueLinx Holdings Inc. (BXC, Financial), a Marietta, Georgia-based distributor of residential and commercial building products in the United States.
The stock traded at $37.3 per share at close on Friday, below the intrinsic value calculated from the DCF model of $135.30. The margin of safety stands at 72.43%.
The share price has gained 249.25% over the past year for a market capitalization of $353.16 million and a 52-week range of $9.8 to $70.38.
GuruFocus has assigned a score of 4 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 buy and an average target price of $80 per share.
