David Tepper (Trades, Portfolio), a distressed-debt specialist, was once considered to be the hottest investor on Wall Street. His portfolio is now composed of 35 stocks; the following are the ones that are trading below the Peter Lynch earnings line.
Goodyear Tire & Rubber Co.(GT) is trading at $31.78, and the Peter Lynch earnings line gives the stock a fair price of $147.6, giving the stock a margin of safety of 78%.
The stock is trading with a PE ratio of 3.19 that is ranked higher than 97% of its competitors in the Global Rubber and Plastics industry, and is currently 3.55% below its 52-week high and 68.42% above its 52-week low.
The company is engaged in manufacturing of tires. It develops, manufactures, markets and distributes tires for various applications. It also manufactures and markets rubber-related chemicals for various applications.
During the last quarter the company delivered outstanding segment operating income growth, North America earnings were up 54%, which is a record for any quarter. Despite significant foreign currency and global economic headwinds, Goodyear achieved a segment operating margin of more than 13% with three of four business units above 10%. Also it completed $50 million in share repurchases in the second quarter.
David Tepper (Trades, Portfolio) holds 3.71% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 2.39% and HOTCHKIS & WILEY with 1.85%.
Chicago Bridge & Iron Company(CBI) is trading at $43.13, and the Peter Lynch Earnings line gives the stock a fair price of $82.5, giving the stock a margin of safety of 48%.
The stock is trading with a PE ratio of 7.64 that is ranked higher than 80% of companies in the Global Engineering and Construction industry and is currently 27.45% below its 52-week high and 34.11% above its 52-week low.
Chicago Bridge & Iron provides conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management and environmental services to customers in the energy infrastructure market throughout the world and is a provider of diversified government services.
For providing operations and maintenance, recently it was awarded a contract extension by Louisiana Pigment LP and to provide fuel services at military installations around the world it has been awarded a contract valued at approximately $100 million by the U.S. government, in which this new contract underscores the service Chicago Bridge & Iron has provided to multiple government departments and agencies for more than 30 years.
Warren Buffett is the company's leading shareholder among the gurus with 8.76% of outstanding shares, followed by David Einhorn (Trades, Portfolio) with 6.32% and David Tepper (Trades, Portfolio) holds 1.13% of outstanding shares.
United Rentals Inc.(URI) is trading at $69.52, but the Peter Lynch earnings line gives the stock a fair price of $86.3, giving the stock a margin of safety of 19%.
The stock is trading with a PE ratio of 12.08 that is ranked higher than 65% of companies in the Global Rental and Leasing Services industry and is currently 41.75% below its 52-week high and 22.70% above its 52-week low.
The company is an equipment rental company; its network consists of locations in 49 states and 10 Canadian provinces. It is also present in more than 300 metropolitan markets in North America.
During the second quarter URI solidly improved its profitability with record results for adjusted EPS and EBITDA margin with an increase of $43 million and 200 basis points, respectively, from the same period last year. It reported revenue with an increase of 3.5% year over year.
Jana Partners (Trades, Portfolio) is the company's leading shareholder among the gurus with 5.75% of outstanding shares, followed by David Tepper (Trades, Portfolio) with 0.63%, Joel Greenblatt (Trades, Portfolio) with 0.44% and First Eagle Investment (Trades, Portfolio) with 0.4% of outstanding shares.
Apple Inc.(AAPL) is trading at $111.6, and the Peter Lynch Earnings line gives the stock a fair price of $125.6, giving the stock a margin of safety of 11%.
The stock is trading with a PE ratio of 12.84 that is ranked higher than 63% of companies in the Global Consumer Electronics industry and is currently 17.05% below its 52-week high and 21.30% above its 52-week low.
Apple designs, manufactures and markets mobile communication and media devices, personal computers and portable digital music players and sells a variety of related software, services, accessories, networking solutions and third-party digital content and applications.
For the last quarter, gross margin was 39.7% compared to 39.4% in the year-ago quarter; it expects the third quarter gross margin to be between 38.5% and 39.5%. In this quarter the year-over-year growth rate accelerated from the first half of fiscal 2015, in which revenue was up by 33% and earnings per share was up by 45%. International sales accounted for 64% of the quarter’s revenue.
Carl Icahn (Trades, Portfolio) is the company's leading shareholder among the gurus with 0.93% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.19% and Jeremy Grantham (Trades, Portfolio) with 0.14%.
DR Horton Inc.(DHI) is trading at the price of $30.93, but the Peter Lynch Value line gives the stock a fair price of $46, giving the stock a margin of safety of 35%.
The stock is trading with a PE ratio of 16.75 that is ranked lower than 54% of its competitors in the Global Residential Construction industry, and is currently 6.44% below its 52-week high and 60.34% above its 52-week low.
The company constructs and sells homes through its operating divisions in 27 states and 79 metropolitan markets of the United States. Its financial reporting segments consist of six homebuilding segments and a financial services segment.
During the last quarter the company had an increase of 25% for net sales orders and an increase of 96% for net income. It this quarter by generating $357.4 million of cash DHI made significant progress toward producing sustainable positive cash flow from operations.
Ken Heebner (Trades, Portfolio) is the company's leading shareholder among the gurus with 2.47% of outstanding shares, followed by George Soros (Trades, Portfolio) with 0.78% and RS Investment Management (Trades, Portfolio) with 0.37%.
