Ronald Muhlenkamp (Trades, Portfolio) of Muhlenkamp & Co Inc looks to invest in stocks that are being sold at a discounted price and also have the potential to grow over an extended period of time.
The Fund also looks to invest in companies that are profitable, as measured by its ROE and will sell at valued prices, as measured by the P/E ratio.
Here's a look at the top three most undervalued stocks in Muhlenkamp's portfolio that currently has 71 positions and a quarter-over-quarter turnover of 9%. For a complete list of his stocks, including his undervalued stocks, click here.
NSR is currently trading at $27.58 a share. According to the DCF calculator, the position's intrinsic value is $118, which indicates it is currently undervalued by 77%. The stock has a 5 out of 5 star business predictability rating.
Neustar provides real-time information services and analytics by using authoritative, hard-to-replicate datasets and proprietary, third-party data sets.
As of December 2014, Neustar's ROE was 32.10%.
Earnings per share for the trailing 12 months as of December 2014 was $2.76. The P/E ratio is currently 9.99.
EBITDA per share was $6.38, and its growth rate for the past 10 years was 17.40% a year.
NSR consists of 1.4% of Muhlenkamp's overall portfolio, with 251,625 shares that are valued at $86,995,000.
Apple Inc (AAPL)
Apple is trading at $131.54 a share. The DCF calculator gives the position a $304 intrinsic value, which indicates Apple is currently undervalued by 57%. The company has a business predictability rating of 4.5 stars out of 5.
Apple markets, designs and manufactures mobile devices, portable music players and computers, along with accessories and software. The company was established in California in 1977.
As of the quarter ending in 2014, net income was $72,096 billion. Return on equity was 61.39%.
Earnings per share for the trailing 12 months ending December 2014 was $7.42. The P/E ratio is currently 17.73.
EBITDA per share was $11.51 and its growth rate for the past ten years was 60.10% a year.
Muhlenkampo currently owns 150,828 shares of Apple, valued at $16,648,000. Apple consists of 3.3% of his portfolio.
Oracle Corporation (ORCL, Financial)
Oracle is currently trading at $43.84 a share. According to the DCF calculator, Oracle's intrinsic value is $84 a share, which indicates the position may currently be undervalued 48%. The company has a 4.5 out of 5 star business predictability rating.
Oracle develops, manufactures, markets, hosts and supports database and middleware software, as well as application software, hardware systems and computer server, storage and networking products.
For the quarter ending in February of 2015, net income was $9.98 billion and ROE for the quarter was 20.87%.
Earning per share for the trailing twelve months as of February 2015 was $2.40. The P/E ratio is curretly 18.19.
EBITDA per share was $3.90 for the trailing 12 months, and its growth rate for the past 10 years was 17% a year.
Oracle consists of 1.3% of Muhlenkamp's portfolio. He currently owns 143,255 shares, valued at $6,442,000.
For a complete list of Muhlenkamp's undervalued positions, click here.
