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4 Stocks Trading Below the Peter Lynch Earnings Line

These companies seem undervalued

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Jan 09, 2022
Summary
  • Alcoa, Berry Global Group, Owens Corning and Olin trade under their respective Peter Lynch earnings lines.
  • These stocks may be valuable opportunities.
  • Wall Street also likes these stocks.
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Value investors could be interested in the following stocks since their share prices are trading below their respective Peter Lynch earnings lines. This indicates they could be undervalued by the market.

On Wall Street, these stocks have also received positive ratings from sell-side analysts.

Alcoa

The first stock investors could be interested in is Alcoa Corp. (

AA, Financial), a Pittsburgh-based manufacturer and marketer of bauxite, alumina and aluminum products in North America, Brazil, Spain and Australia.

The chart below shows the share price ($62.37 at close on Jan. 7) is currently trading below the intrinsic value estimate of $64.5 calculated by the Peter Lynch earnings line.

1480124952110768128.png

The stock has risen 154% over the past year through Friday for a market capitalization of $11.67 billion and a 52-week range of $17.3 to $62.89.

The stock has a median recommendation rating of buy on Wall Street and an average target price of $59.97.

GuruFocus has awarded a score of 5 out of 10 to both the company's financial strength and profitability.

Vanguard Group Inc., BlackRock Inc. and

Ken Fisher (Trades, Portfolio) are among the company's largest shareholoders. Vanguard holds 8.93% of its shares outstanding, BlackRock holds 4.51% and Fisher has 3.44%.

Berry Global Group

The second stock investors could be interested in is Berry Global Group Inc. (

BERY, Financial), an Evansville, Indiana-based manufacturer of non-woven, flexible and rigid products for consumer and industrial needs, supplying end markets in the U.S. and internationally.

The chart below shows the share price ($73.21 as of Jan. 7) is currently trading below the Peter Lynch earnings line's intrinsic value estimate of $79.8.

1480124959736012800.png

The stock has gained 35% over the past year through Friday, determining a market capitalization of $9.93 billion and a 52-week range of $48.645 to $74.73.

Wall Street sell-side analysts have issued a median recommendation rating of overweight for this stock with an average target price of $80.41.

GuruFocus has assigned a score of 3 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

EdgePoint Investment Group Inc. is the company's largest fund holder with 12.91% of total shares outstanding. Vanguard and Turtle Creek Asset Management Inc. follow with 9.13% and 4.32% positions.

Owens Corning

The third stock investors could be interested in is Owens Corning (

OC, Financial), a Toledo, Ohio-based producer and distributor of building products and equipment.

The chart below shows the share price ($89.87 at close on Jan. 7) is trading below the Peter Lynch earnings line's intrinsic value estimate of $141.45.

1480124966715334656.png

The stock has climbed 11% over the past year through Friday for a market capitalization of $9.03 billion and a 52-week range of $75.44 to $109.895.

The stock has a median recommendation rating of overweight on Wall Street with an average target price of $114.88 per share.

GuruFocus awarded a 5 out of 10 to the company's financial strength and a 7 out of 10 to its profitability.

BlackRock is the largest shareholder of the company with 11.86% of the total outstanding shares. Vanguard and Boston Partners follow with 9.90% and 4.94% respectively.

Olin

The fourth stock investors could be interested in is Olin (

OLN, Financial), a Clayton, Missouri-based producer of ammunition, chlorine and sodium hydroxide. The company distributes the products in the U.S. and internationally.

The chart below shows the share price ($53.90 at close on Jan. 7) is trading below the Peter Lynch earnings line's intrinsic value estimate of $87.75.

1480124973891788800.png

The stock has increased 99% over the past year through Friday for a market capitalization of $8.59 billion and a 52-week range of $22.76 to $64.76.

The stock has a median recommendation rating of buy on Wall Street with an average target price of $74 per share.

GuruFocus awarded a 4 out of 10 to the company's financial strength and a 6 out of 10 to its profitability.

FMR LLC is the company's largest fund holder with 12.85% of the total number of outstanding shares. BlackRock and Vanguard follow with 9.49% and 9.22%.

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Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
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