4 Stocks Trading Below the Peter Lynch Earnings Line

These companies could be undervalued

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Jun 27, 2022
Summary
  • Warner Bros. Discovery Inc., Ovintiv Inc., Golden Ocean Group Ltd and Nuveen Credit Strategies Income Fund are trading under their respective Peter Lynch earnings lines.
  • These stocks may be value opportunities.
  • Wall Street also likes these names.
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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. These stocks have also received positive ratings from sell-side analysts on Wall Street.

Warner Bros. Discovery Inc.

The first stock investors could be interested in is Warner Bros. Discovery Inc. (

WBD, Financial), a New York-based media provider of content across various distribution platforms in approximately 50 different languages worldwide.

The chart below shows the share price ($14.28 as of early trading on June 27) is currently trading below the most recent intrinsic value estimate of $30.30 calculated by the Peter Lynch earnings line.

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The stock is down 53.29% over the past year for a market cap of $34.66 billion and a 52-week range of $13.30 to $31.88.

The stock has a median recommendation rating of overweight on Wall Street and an average target price of $32.89.

GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and 9 out of 10 to its profitability.

BlackRock Inc., Newport Trust Co and Vanguard Group Inc. are among the company's largest shareholders. BlackRock Inc. holds 6.89% of its shares outstanding, Newport Trust Co owns 1.97% and Vanguard Group Inc. has 0.75%.

Ovintiv Inc.

The second stock investors could be interested in is Ovintiv Inc. (

OVV, Financial), a Denver, Colorado-based producer of oil and natural gas from mineral assets located in North America and trader of these commodities through its Market Optimization segments.

The chart below shows the share price ($45.43 as of early trading on June 27) is currently trading below the most recent Peter Lynch earnings line's intrinsic value estimate of $47.85.

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The stock has risen nearly 44% over the past year, determining a market capitalization of $11.73 billion and a 52-week range of $21.91 to $63.30.

Wall Street sell-side analysts have issued a median recommendation rating of buy for this stock with an average target price of $70.16.

GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

Vanguard Group Inc., BlackRock Inc. and Dodge & Cox are among the company's largest shareholders. Vanguard Group Inc. holds 10.18% of its shares outstanding, BlackRock Inc. holds 8.98% and Dodge & Cox has 7.99%.

Golden Ocean Group Ltd

The third stock investors could be interested in is Golden Ocean Group Ltd (

GOGL, Financial), a Hamilton, Bermuda-based shipping company that owns and operates a fleet of 81 bulk carriers for the global transport of ores, coal, grain and fertilizers.

The chart below shows the share price ($11.43 as of early trading on June 27) is trading below the Peter Lynch earnings line's intrinsic value estimate of $46.80.

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The stock has risen by 4.96% over the past year for a market capitalization of $2.32 billion and a 52-week range of $7.58 to $16.45.

The stock has a median recommendation rating of overweight on Wall Street with an average target price of $16.13 per share.

GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and 6 out of 10 to its profitability.

Goldman Sachs Group Inc.,

Jim Simons (Trades, Portfolio) and FMR LLC are among the largest shareholders of the company, holding 4.22%, 1.83% and 1.60%, respectively, of total shares outstanding.

Nuveen Credit Strategies Income Fund

The fourth stock investors could be interested in is Nuveen Credit Strategies Income Fund (

JQC, Financial), a San Francisco-based asset management firm focusing on the U.S. fixed income and public equity markets.

The chart below shows the share price ($5.26 as of early trading on June 27) is trading below the most recent Peter Lynch earnings line's intrinsic value estimate of $5.70.

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The stock has declined by 21.6% over the past year for a market capitalization of $713.30 million and a 52-week range of $5.10 to $6.81.

As of May, the stock had one strong buy recommendation rating on Wall Street.

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

Parametric Portfolio Associates LLC, Rivernorth Capital Management LLC and Bramshill Investments, LLC are among the largest shareholders of the company, holding 6.65%, 3.84% and 3.22%, respectively, of total shares outstanding.

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