When screening the market for bargains, investors may want to consider 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 they believe their share prices will trade higher over the coming months.
Skyworks Solutions Inc
The first stock investors may want to consider is Skyworks Solutions Inc (SWKS, Financial), an Irvine, California-based manufacturer and marketer of semiconductor products in the U.S. and internationally.
The stock traded at $178.88 per share at close on Friday, which is below the intrinsic value of $280.10 calculated from the DCF model, yielding a margin safety of 36.14%.
The share price has risen by 25.75% over the past year, determining a market capitalization of $29.54 billion and a 52-week range of $130.72 to $204.
GuruFocus has assigned a score of 7 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 $215.71 per share.
Markel Corp
The second stock investors may want to consider 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 $1,268.88 per share at close on Friday, which is below the intrinsic value of $4,078.54 calculated from the DCF model, yielding a margin safety of 68.89%.
The share price has risen by 16.51% over the past year, determining a market capitalization of $17.42 billion and a 52-week range of $913.04 to $1,288.
GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and 7 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 $1,372.50 per share.
Arch Capital Group Ltd
The third stock investors may want to consider 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 $42.10 per share at close on Friday, below the intrinsic value calculated from the DCF model of $192.16. The margin of safety stands at 78.09%.
The share price has climbed 31.77% over the past year for a market capitalization of $16.67 billion and a 52-week range of $27.41 to $42.36.
GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 7 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 $48.36 per share.
Disclosure: I have no positions in any securities mentioned.
