When searching for value opportunities, investors could be interested in 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 that they expect share prices to rise.
Rush Enterprises Inc
The first stock that matches the above criteria is Rush Enterprises Inc (RUSHA, Financial) (RUSHB, Financial), a New Braunfels, Texas-based retailer of commercial vehicles.
Shares traded at $44.70 per unit of class A common stock and $43.76 per unit of class B common stock as of early trading on Tuesday, which are both lower than the DCF valuation of $95.58, yielding margins of safety of 53.38% and 54.59%, respectively.
Over the past year, the share price for class A common stock has gained 35.63%, fluctuating in a 52-week range of $31.51 to $51.98. The share price for class B common stock has gained 50.52%, fluctuating in a 52-week range of $27.38 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 6 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 $59 per share.
Regarding the class A common stock, VANGUARD GROUP INC and BlackRock Inc. are the largest top fund holders of the company with 9.14% and 5.44%, respectively, of shares outstanding.
Regarding the class B common stock, Mario Gabelli (Trades, Portfolio) and VANGUARD GROUP are the largest top fund holders of the company with 1.39% and 0.97%, respectively, of shares outstanding.
Sage Therapeutics Inc
The second stock that meets the criteria is Sage Therapeutics Inc (SAGE, Financial), a Cambridge, Massachusetts-based biopharmaceutical developer of medicines to treat major depressive disorders, including postpartum depression in adults and bipolar depression. The pipeline also includes treatments for generalized anxiety disorders, essential tremors, including epilepsy and Parkinson's diseases.
The stock price was $42.70 per share as of early trading on Tuesday, which stands lower than the intrinsic value of $187.30 from the DCF model, yielding a 77.05% margin of safety.
The share price fell by 14.71% over the past year, determining a market capitalization of $2.53 billion and a 52-week range of $39.78 to $98.38.
GuruFocus has assigned a score of 7 out of 10 to the company's financial strength and 1 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $86.42 per share.
FMR LLC is the company's top fund holder with 11.67% of shares outstanding. The asset management company is followed by WELLINGTON MANAGEMENT GROUP LLP with 10.42% and VANGUARD GROUP with 8.20%.
Virtus Investment Partners Inc
The third stock that matches the criteria is Virtus Investment Partners Inc (VRTS, Financial), a Hartford, Connecticut-based asset management company.
The stock was trading at $308.11 per share as of early trading on Tuesday, which is below the intrinsic value of $468.77 from the discounted cash flow model, yielding a 34.27% margin of safety.
The share price has risen by 119.04% over the past year, determining a market capitalization of $2.35 billion and a 52-week range of $129.35 to $316.81.
GuruFocus has assigned a score of 5 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 $400 per share.
BlackRock Inc. dominates the group of top fund holders of the company, owning 15.96% of shares outstanding. Vanguard Group is second in the group with 10.75% of shares outstanding, followed by PRICE T ROWE ASSOCIATES INC /MD/ with 6.93%.
Disclosure: I have no positions in any securities mentioned.
