Gurus Are Buying These Stocks Trading Below Peter Lynch value

Goodyear Tire and Micron are undervalued by about 70%

Author's Avatar
Jan 14, 2016
Article's Main Image

According to GuruFocus' All-in-One Screener, the following are the stocks that are trading below the Peter Lynch value, and which more than five hedge fund gurus have in their portfolios.

Goodyear Tire & Rubber Co. (GT) is trading at about $29 per share, and the Peter Lynch value gives the stock a fair price of $125.6, giving the stock a margin of safety of 77%.

The stock is trading with a PE ratio of 2.76, higher than 98% of companies in the Global Rubber & Plastics industry and is currently 21.56% below its 52-week high and 16.64% above its 52-week low.

The company is engaged in the manufacturing of tires. It develops, manufactures, markets and distributes tires for various applications.

The stock is part of five gurus portfolios:Â Diamond Hill Capital (Trades, Portfolio) is the largest shareholder of the company among the gurus with 2.21% of outstanding shares, followed by David Tepper (Trades, Portfolio) with 2.2%, HOTCHKIS & WILEY with 1.55% and Pioneer Investments (Trades, Portfolio) with 0.48%.

AerCap Holdings NVÂ (AER) is trading at about $38 per share, and the Peter Lynch value gives the stock a fair price of $144.25, giving the stock a margin of safety of 74%.

The stock is trading with a PE ratio of 6.31, higher than 87% of companies in the Global Airports & Air Services industry and is currently 51.50% below its 52-week high and 0.75% above its 52-week low.

The company is an integrated aviation company, conducting aircraft leasing and trading aircraft. It also provides aircraft management services to other owners of aircraft.

The stock is part of five guru portfolios. The company’s largest shareholder among the gurus is Donald Smith (Trades, Portfolio) with 4.85% of outstanding shares, followed by David Einhorn (Trades, Portfolio) with 3.72%, Leon Cooperman (Trades, Portfolio) with 2.85% and Lee Ainslie (Trades, Portfolio) with 2.47%.

Tesoro Corp. (TSO) is trading at about $104 per share, and the Peter Lynch value gives the stock a fair price of $331, giving the stock a margin of safety of 68%.

The stock is trading with a PE ratio of 7.03, higher than 81% of companies in the Global Oil & Gas Refining & Marketing industry and is currently 23.19% below its 52-week high and 43.27% above its 52-week low.

The company is an independent petroleum refining and marketing company in the western United States. Its subsidiaries, operating through three business segments, transport crude oil and manufacture, transport and sell transportation fuels.

The stock is part of seven guru portfolios. Caxton Associates (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.25% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.15%, Joel Greenblatt (Trades, Portfolio) with 0.08% and Ray Dalio (Trades, Portfolio) with 0.07%.

Valero Energy Corp. (VLO) is trading at about $71 per share, and the Peter Lynch value gives the stock a fair price of $214.51, giving the stock a margin of safety of 67%.

The stock is trading with a PE ratio of 6.37, higher than 92% of companies in the Global Oil & Gas Refining & Marketing industry and is currently 11.98% below its 52-week high and 49.67% above its 52-week low.

Its refineries produce conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products as well as a slate of premium products including CBOB and RBOB, gasoline meeting the specifications of the California Air Resources Board (CARB), CARB diesel fuel, and low-sulfur and ultra-low-sulfur diesel fuel.

The stock is part of nine gurus portfolios. The company’s largest shareholder among the gurus is Jeremy Grantham (Trades, Portfolio) with 0.32% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.24%, Jim Simons (Trades, Portfolio) with 0.14% and Steven Cohen (Trades, Portfolio) with 0.12%.

Micron Technology Inc. (MU) is trading at about $12 per share, and the Peter Lynch value gives the stock a fair price of $39.02, giving the stock a margin of safety of 67%.

The stock is trading with a PE ratio of 6.65, higher than 93% of companies in the Global Semiconductor Memory industry and is currently 63.28% below its 52-week high and 1.26% above its 52-week low.

The company manufactures and markets a range of DRAM, NAND Flash and NOR Flash memory, as well as other memory technologies, packaging solutions and semiconductor systems for use in computing, consumer, networking, automotive, industrial, embedded and mobile products.

The stock is part of seven guru portfolios. PRIMECAP Management (Trades, Portfolio) is largest shareholder of the company among the gurus with 4.24% of outstanding shares, followed by Donald Smith (Trades, Portfolio) with 1.37%, David Einhorn (Trades, Portfolio) with 1.19% and Joel Greenblatt (Trades, Portfolio) with 0.36%.

CIT Group Inc. (CIT) is trading at about $35 per share, and the Peter Lynch value gives the stock a fair price of $108.56, giving the stock a margin of safety of 67%.

The stock is trading with a PE ratio of 5.49, higher than 89% of companies in the Global Credit Services industry and is currently 30.20% below its 52-week high and 0.85% above its 52-week low.

The company provides financing, leasing and advisory services principally to middle market companies in industries primarily in North America, and equipment financing and leasing solutions to the transportation industry worldwide.

The stock is part of six guru portfolios; the company’s largest shareholder among the gurus is John Paulson (Trades, Portfolio) with 3.49% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 2.65%, Steven Romick (Trades, Portfolio) with 2.64% and Lee Ainslie (Trades, Portfolio) with 2.25%.

Marathon Petroleum Corp. (MPC) is trading at about $46 per share, and the Peter Lynch value gives the stock a fair price of $128.88, giving the stock a margin of safety of 64%.

The stock is trading with a PE ratio of 6.73, higher than 85% of companies in the Global Oil & Gas Refining & Marketing industry and is currently 29.98% below its 52-week high and 12.39% above its 52-week low.

The company is a marketer, transporter and transporter of petroleum product refiners in the U.S.Â

The stock is part of seven guru portfolios; James Barrow (Trades, Portfolio) is the largest shareholder of the company among the gurus with 2.08% of outstanding shares, followed by Alan Fournier (Trades, Portfolio) with 0.79%, John Griffin (Trades, Portfolio) with 0.66% and Pioneer Investments (Trades, Portfolio) with 0.33%.

Gilead Sciences Inc. (GILD) is trading at about $97 per share, and the Peter Lynch value gives the stock a fair price of $273, giving the stock a margin of safety of 64%.

The stock is trading with a PE ratio of 8.46, higher than 90% of companies in the Global Biotechnology industry and is currently 24.99% below its 52-week high and 7.60% above its 52-week low.

The company is a research-based biopharmaceutical company that discovers, develops and commercializes new medicines for different medical sectors.

The stock is part of six guru portfolios; the company’s largest shareholder among the gurus is Pioneer Investments (Trades, Portfolio) with 0.23% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 0.09%, Joel Greenblatt (Trades, Portfolio) with 0.07% and Ken Fisher (Trades, Portfolio) with 0.04%.

LyondellBasell Industries NVÂ (LYB) is trading at about $78 per share, and the Peter Lynch value gives the stock a fair price of $214.15, giving the stock a margin of safety of 64%.

The stock is trading with a PE ratio of 5.80, higher than 87% of companies in the Global Specialty Chemicals industry and is currently 30.17% below its 52-week high and 4.46% above its 52-week low.

The company is an independent chemical company. The company's operations are managed through five operating segments: Olefins and Polyolefins-Americas, Olefins and Polyolefins-Europe, Asia, and International, Intermediates and Derivatives, Refining and Technology.

The stock is part of nine guru portfolios; Andreas Halvorsen (Trades, Portfolio) is the largest shareholder of the company among the gurus with 3.01% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.81%, Jim Simons (Trades, Portfolio) with 0.14% and Leon Cooperman (Trades, Portfolio) with 0.04%.

Tegna Inc. (TGNA) is trading at about $23 per share, and the Peter Lynch value gives the stock a fair price of $63.47, giving the stock a margin of safety of 63%.

The stock is trading with a PE ratio of 5.36, higher than 94% of companies in the Global Broadcasting - TV industry and is currently 52.40% below its 52-week high and 99.76% above its 52-week low.

The company is an international media and marketing solutions company with diverse local content providers in the U.S.

The stock is part of five guru portfolios. The company’s largest shareholder among the gurus is Carl Icahn (Trades, Portfolio) with 6.75% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 3.31%, John Rogers (Trades, Portfolio) with 2.96% and Manning & Napier Advisors with 2.5%.

Also check out: