When seeking bargain opportunities, value investors may want to consider the following securities, as their share prices are trading near or below the intrinsic value estimated by the GuruFocus Value Line. The GF Value is a unique intrinsic value calculation from GuruFocus that utilizes the three components listed below:
- The stock's historical multiples, such as the price-earnings ratio, the price-sales ratio, the price-book ratio and the price-to-free cash flow ratio.
- A GuruFocus adjustment factor based on the past returns and growth of the company's business.
- Analyst estimates of future business performance.
Companhia Siderurgica Nacional
The first stock investors may want to consider is Companhia Siderurgica Nacional (SID, Financial), a Brazilian integrated steel producer with activities in Brazil and South America.
Companhia Siderurgica Nacional's share price was $5.26 at close on Thursday, while its GF Value stands at $5.54, resulting in a price-to-GF-Value ratio of 0.95 and a rating of modestly undervalued.
The stock price is currently up 77.10% year-over-year, determining a market capitalization of $7.26 billion and a 52-week range of $2.85 to $10.83.
The price-earnings ratio is 26.26 (versus the industry median of 14.38) and the price-book ratio is 1.08 (versus the industry median of 1.33). Also, the price-sales ratio is 1.29 (versus the industry median of 1.37) and the price-to-free-cash-flow ratio is 16.37 (versus the industry median of 9.5).
The stock has a GuruFocus profitability rating of 7 out of 10.
Concerning the future business performance, sell-side analysts on Wall Street estimate that the earnings per share will increase by approximately 3.91% per annum over the next five years.
The stock has a median recommendation rating of overweight with an average target price of $10.47 per share.
Taylor Morrison Home Corp
The second stock investors may want to consider is Taylor Morrison Home Corp (TMHC, Financial) a Scottsdale, Arizona-based builder of single-family and multi-family homes in the U.S.
Taylor Morrison Home Corp’s shares closed at $25.78 apiece on Thursday while its GF Value is $28.16, resulting in a price-to-GF-Value ratio of 0.92 and a rating of fairly priced.
Currently, the stock price is down 0.54% year-over-year for a market capitalization of $3.23 billion and a 52-week range of $21.34 to $33.06.
The price-earnings ratio is 7.85 (versus the industry median of 11.03) and the price-book ratio is 0.91 (versus the industry median of 1.35). The price-sales ratio is 0.53 (versus the industry median of 0.94) and the price-to-free-cash-flow ratio is 5.13 (versus the industry median of 8.23).
The GuruFocus profitability rating is 7 out of 10.
Regarding future business performance, sell-side analysts on Wall Street forecast that on a year over year basis, the earnings per share will increase by 172.9% this year and by 28.70% next year. EPS is projected to grow by 19.10% per annum over the next five years.
The stock has a median recommendation rating of overweight with an average target price of $38.25 per share.
Aflac Inc
The third stock investors may want to consider is Aflac Inc (AFL, Financial), a Columbus, Georgia-based insurance company.
Aflac Inc’s shares closed at $52.13 apiece on Thursday while its GF Value was $54.12, resulting in a price-to-GF-Value ratio of 0.96 and a rating of fairly valued.
The stock has risen by 41.35% over the past year, determining a market capitalization of $34.97 billion and a 52-week range of $33.36 to $57.64.
The price-earnings ratio is 6.29 (compared to the industry median of 10.92) and the price-book ratio is 1.05 (versus the industry median of 1.17). The price-sales ratio is 1.58 (compared to the industry median of 1.21) and the price-to-free-cash-flow ratio is 6.42 (versus the industry median of 8.42).
GuruFocus has assigned the stock a profitability rating of 6 out of 10.
Concerning the future business performance, sell-side analysts on Wall Street predict that the earnings per share will increase 6.11% every year over the next five years.
The stock has a median recommendation rating of hold with an average target price of $57.70 per share.
Disclosure: I have no positions in any securities mentioned.
