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, which means they expect higher share prices over the coming months.
Braskem SA
The first stock investors could be interested in is Braskem SA (BAK, Financial), a Brazilian thermoplastic resins producer.
The stock closed at $19.26 per share on Wednesday, which is below the intrinsic value of $81.31 calculated from the DCF model, yielding a margin safety of 76.31%.
The share price has risen by 98% over the past year, determining a market capitalization of $7.67 billion and a 52-week range of $8.56 to $26.93.
GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and a 5 out of 10 rating to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $25.09 per share.
Group 1 Automotive Inc.
The second stock investors could be interested in is Group 1 Automotive Inc. (GPI, Financial), a Houston, Texas-based operator of dealerships in the U.S., U.K. and Brazil for the sale of new and used cars, light trucks and vehicle parts.
The stock closed at $186.38 per share on Wednesday, which is below the intrinsic value of $909.85 calculated by the DCF model, yielding a margin safety of 79.52%.
The share price has risen by 22% over the past year, determining a market capitalization of $3.37 billion and a 52-week range of $130.30 to $212.23.
GuruFocus has assigned a score of 6 out of 10 to the company's financial strength and 8 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $265.83 per share.
Methanex Corp
The third stock investors could be interested in is Methanex Corp. (MEOH, Financial), a Canadian producer and supplier of methanol in North America and internationally.
The stock closed at $43.76 per share on Wednesday, below the intrinsic value calculated from the DCF model of $111.60. The margin of safety stands at 60.79%.
The share price has increased by 3.5% over the past year for a market capitalization of $3.30 billion and a 52-week range of $29.61 to $52.88.
GuruFocus has assigned a score of 4 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 $51.42 per share.
