5 Peter Lynch Growth Stocks Near 52-Week Lows

Stocks that meet Fidelity Magellan Fund manager's key criteria

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Jun 20, 2022
Summary
  • Legendary investor Peter Lynch developed a simple method to find undervalued stocks.
  • GuruFocus’ new Excel Add-In contains a predefined Peter Lynch Chart template.
  • GuruFocus’ All-in-One Screener listed several Peter Lynch stocks trading near 52-week lows.
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According to the All-in-One Screener, a Premium feature of GuruFocus, five Peter Lynch Growth stocks that are trading near 52-week lows as of last Friday are Amerco Inc. (UHAL, Financial), TFI International Inc. (TFII, Financial), HCA Health Care Inc. (HCA, Financial), DaVita Inc. (DVA, Financial) and MasTech Digital Inc. (MHH, Financial).

GuruFocus’ Excel Add-In includes a Peter Lynch chart template

Legendary Fidelity Magellan Fund manager Peter Lynch discussed in his book, “One Up on Wall Street,” a simple method to measure a stock’s relative valuation based on the price-earnings ratio. If a stock trades below 15 times earnings per share, the stock is undervalued based on Lynch’s criterion.

GuruFocus’ new Excel Add-In comes with several predefined templates, including a Peter Lynch Chart template that allows users to chart a company’s price line and earnings line based on his definition. Figure 1 illustrates a sample chart for Johnson & Johnson (JNJ, Financial) using the Excel Add-In template.

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Figure 1

All-in-One Screener listed several Peter Lynch stocks trading near 52-week lows

GuruFocus’ Peter Lynch Growth screen builds from the fund manager’s criterion by adding additional criteria, including a high business predictability rank and high revenue growth over the past 10 years. Among the stocks listed, several stocks have traded within 5% of their 52-week lows and have a GF Score of 90 out of 100 or higher.

Amerco

Shares of Amerco (UHAL, Financial) traded around $456.71, showing the stock is modestly undervalued based on last Friday’s price-to-GF Value ratio of 0.75. The stock has a price-earnings ratio close to a 10-year low of 7.55 and is approximately 1.96% above its 52-week low.

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The Reno, Nevada-based rental truck company has a GF Score of 97 out of 100 based on a rank of 10 out of 10 for profitability, growth and GF Value, a momentum rank of 8 out of 10 and a financial strength rank of 5 out of 10.

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Gurus with holdings in Amerco include Yacktman Asset Management (Trades, Portfolio) and David Abrams (Trades, Portfolio)’ Abrams Capital Management.

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TFI International

Shares of TFI International (TFII, Financial) traded around $72.99, showing the stock is modestly undervalued based on last Friday’s price-to-GF Value ratio of 0.75. The stock has a price-earnings ratio close to a two-year low of 9.64 and trades approximately 1.90% above its 52-week low.

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The Montreal-based logistics company has a GF Score of 96 out of 100 based on a growth rank of 10 out of 10, a rank of 9 out of 10 for profitability and GF Value, a momentum rank of 8 out of 10 and a financial strength rank of 6 out of 10.

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HCA Health Care

Shares of HCA Health Care (HCA, Financial) traded around $173.10, showing the stock is modestly undervalued based on last Friday’s price-to-GF Value ratio of 0.87. The stock has a price-earnings ratio close to a five-year low of 8.15 and trades approximately 2.35% above its 52-week low.

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The Nashville-based hospital care company has a GF Score of 95 out of 100 based on a rank of 10 out of 10 for profitability, growth and momentum, a GF Value rank of 7 out of 10 and a financial strength rank of 4 out of 10.

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DaVita

Shares of DaVita (DVA, Financial) traded around $89.48, showing the stock is modestly undervalued based on last Friday’s price-to-GF Value ratio of 0.75. The stock has a price-earnings ratio close to a three-year low of 10.65 and trades approximately 2.63% above its 52-week low.

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The Denver-based kidney dialysis company has a GF Score of 93 out of 100 based on a rank of 10 out of 10 for growth and GF Value, a profitability rank of 9 out of 10, a momentum rank of 7 out of 10 and a financial strength rank of 4 out of 10.

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MasTech Digital

Shares of MasTech Digital (MHH, Financial) traded around $14.53, showing the stock is modestly undervalued based on last Friday’s price-to-GF Value ratio of 0.74. The stock has a price-earnings ratio of 13.21 and trades approximately 3.79% above its 52-week low.

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The Moon Township, Pennsylvania-based digital transformation software company has a GF Score of 90 out of 100 based on a GF Value rank of 10 out of 10, a rank of 9 out of 10 for profitability and growth, a financial strength rank of 8 out of 10 and a momentum rank of 3 out of 10.

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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