3 Potential Value Opportunities to Consider

These stocks could represent value opportunities under the DCF model

Author's Avatar
Feb 14, 2022
Summary
  • CURO Group Holdings Corp, BioDelivery Sciences International Inc. and Hooker Furnishings Corporation are trading at a discount to their DCF values.
  • Wall Street is also positive about these stocks.
Article's Main Image

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.

CURO Group Holdings Corp

The first stock that holds the criteria is CURO Group Holdings Corp. (

CURO, Financial), a Wichita, Kansas-based provider of credit services to underbanked consumers in North America and the United Kingdom.

The stock was trading around $13.55 per share at close on Friday, which is below the intrinsic value estimate of $16.80 from the DCF model, yielding a 19.35% margin of safety.

The share price declined 13.2% over the past year, determining a market capitalization of $563.81 million and a 52-week range of $12.58 to $20.10.

1493178098387066880.png

GuruFocus has assigned a score of 2 out of 10 to the company's financial strength and 3 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $24.50 per share.

OCO Capital Partners, L.P., Empyrean Capital Partners, LP and BlackRock Inc. are the company's top fundholders with 7.21%, 6.90% and 3.39% of shares outstanding, respectively.

BioDelivery Sciences International Inc.

The second stock that meets the criteria is BioDelivery Sciences International Inc. (

BDSI, Financial), a Raleigh, North Carolina-based biotech company engaging in the advancement and commercialization of specialty pharmaceutical treatments for several illnesses.

The stock was trading around $3.64 per share at close on Friday, which stands below the intrinsic value of $4.20 from the DCF model, yielding a 13.33% margin of safety.

The share price dropped by 11.7% over the past year, determining a market capitalization of $359.62 million and a 52-week range of $2.50 to $4.67.

1493178101247582208.png

GuruFocus has assigned a score of 5 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 buy and an average target price of $6.79 per share.

Deerfield Management Company, L.P. (Series C) is the company's top fund holder with 9.28% of shares outstanding. It is followed by BlackRock Inc. with 7.39% and Wasatch Advisors Inc. with 5.48%.

Hooker Furnishings Corporation

The third stock that qualifies is Hooker Furnishings Corporation (

HOFT, Financial), a Martinsville, Virginia-based manufacturer, importer and marketer of residential household, hospitality and contract furniture through retail stores located in the United States.

The stock was trading at $21.65 per share at close on Friday, which is below the intrinsic value of $27.24 from the discounted cash flow model, yielding a 20.52% margin of safety.

The share price has dropped 35.3% over the past year, determining a market capitalization of $258.12 million and a 52-week range of $20.18 to $42.90.

1493178103583809536.png

GuruFocus has assigned a score of 8 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

On Wall Street, the stock has a recommendation rating of buy and a target price of $45 per share.

Chuck Royce (Trades, Portfolio) dominates the group of top fund holders of the company, owning 11.41% of shares outstanding. Richard Pzena (Trades, Portfolio) is second in the group with 11.04% of shares outstanding, followed by the Royce Special Equity Fund with 9.54%.

Also check out:

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
Rating:
0 / 5 (0 votes)
Author's Avatar
WRITTEN BY

GuruFocus Screeners

Related Articles