When seeking 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 they expect share prices to rise.
Sterling Construction Co Inc.
The first stock that holds the criteria is Sterling Construction Co Inc. (STRL, Financial), a Woodlands, Texas-based construction company engaging the heavy civil, specialty services and residential building activities primarily in the southern region of the United States, in the Rocky Mountain states, California and Hawaii.
The stock was trading around $27.65 per share at close on Thursday, which is below the intrinsic value of $29.22 from the DCF model, yielding a 5.05% margin of safety.
The share price increased 20% over the past year, determining a market capitalization of $818.10 million and a 52-week range of $19.20 to $29.67.
GuruFocus has assigned a score of 5 out of 10 to both the company's financial strength and its profitability.
On Wall Street, the stock has a recommendation rating of overweight and a target price of $32 per share.
SEGALL BRYANT & HAMILL, LLC, BlackRock Inc. and VANGUARD GROUP INC are the company's top fund holders with 8.85%, 7.94% and 4.91% of shares outstanding, respectively.
Quanex Building Products Corporation
The second stock that meets the criteria is Quanex Building Products Corporation (NX, Financial), a Houston, Texas-based provider of components for the fenestration industry in North America and internationally.
The stock was trading around $24.11 per share at close on Thursday, which stands below the intrinsic value of $25.09 from the DCF model, yielding a 5.30% margin of safety.
The share price fell by 7.31% over the past year, determining a market capitalization of $793.63 million and a 52-week range of $20.32 to $29.02.
GuruFocus has assigned a score of 6 out of 10 to both the company's financial strength and its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $32.50 per share.
BlackRock Inc. is the company's top fund holder with 16.29% of shares outstanding. It is followed by VANGUARD GROUP INC with 10.83% and WELLS FARGO & COMPANY/MN with 9.73%.
Daseke Inc.
The third stock that qualifies is Daseke Inc. (DSKE, Financial), an Addison, Texas-based provider of transportation and logistics services solutions through flatbed trucks and specialized freights in North America and Mexico.
The stock was trading at $9.53 per share at close on Thursday, which is below the intrinsic value of $11.07 from the discounted cash flow model, yielding a 15.81% margin of safety.
The share price has risen 58.50% over the past year, determining a market capitalization of $584.28 million and a 52-week range of $4.97 to $10.71.
GuruFocus has assigned a score of 3 out of 10 to the company's financial strength and 4 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $12.38 per share.
BlackRock Inc. dominates the group of top fund holders of the company, owning 4.67% of shares outstanding. VANGUARD GROUP INC is second in the group with 4.60% of shares outstanding, followed by Portolan Capital Management, LLC with 4.15%.
