According to GuruFocus' All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair value is far above the current price. The following stocks are trading with a wide margin of safety and at least five gurus are shareholders.
Delta Air Lines Inc. (DAL) is trading at the price of $47.86, but the Peter Lynch earnings line gives to the company a fair price of $88.75, giving the stock a margin of safety of 46%. It is trading with a PE ratio of 13.50 that is ranked lower than 55% of its competitors in the Global Airlines industry, and is currently -9.30% from its 52-week high and +38.28% from its 52-week low.
The company reports a cash to debt of 0.41 that is below the industry median of 0.46, with positive returns of ROE of 45.55% and ROA of 8.47% that are outperforming the 71% of its competitors. Delta Air Lines provides scheduled air transportation for passengers and cargo throughout the U.S. and around the world. It operates in domestic and international market.
The stock is part of 12 guru portfolios: PRIMECAP Management (Trades, Portfolio) is the main shareholder among the gurus with a stake of 2.38% of outstanding shares, followed by David Tepper (Trades, Portfolio) with 0.94%, First Eagle Investment (Trades, Portfolio) with 0.39%, Sarah Ketterer (Trades, Portfolio) with 0.36%, George Soros (Trades, Portfolio) with 0.25% and John Burbank (Trades, Portfolio) with 0.22%.
Southwest Airlines Co. (LUV) is trading at the price of $42.17, but the Peter Lynch earnings line gives to the company a fair price of $68, giving the stock a margin of safety of 38%. It is trading with a PE ratio of 15.50 that is ranked lower than 65% of its competitors in the Global Airlines industry and is currently -17.86% from its 52-week high and +34.47% from its 52-week low.
The company reports a cash to debt of 0.91 that is below the industry median of 0.46, with strong returns of ROE of 31.01% and ROA of 10.44% that are outperforming 76% of its competitors. Southwest Airlines operates Southwest Airlines and AirTran Airways.
The company is held by seven gurus. PRIMECAP Management (Trades, Portfolio) is the largest shareholder among the gurus with a stake of 11.39% of outstanding shares, followed by David Tepper (Trades, Portfolio) with 0.66%, James Barrow (Trades, Portfolio) with 0.55% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.2%.
PVH Corp. (PVH) is trading at the price of $79.69, but the Peter Lynch earnings line gives to the company a fair price of $97.87, giving the stock a margin of safety of 19%. It is trading with a PE ratio of 13.50 that is ranked higher than 68% of its competitors in the Global Apparel Manufacturing industry and is currently -33.96% from its 52-week high and +24.21% from its 52-week low.
The company reports a cash to debt of 0.11 that is far below the industry median of 1.13, with easy returns of ROE of 10.96% and ROA of 4.49% that are outperforming the 58% of its competitors. PVH Corp. is a branded apparel company with a heritage dating back over 130 years.
The stock is part of five gurus portfolios: Larry Robbins (Trades, Portfolio) is the main shareholder among the gurus with a stake of 2.98% of outstanding shares, followed by Sarah Ketterer (Trades, Portfolio) with 2.09%, Michael Dell (Trades, Portfolio) with 1.3%, Ray Dalio (Trades, Portfolio) with 0.28% and Steven Cohen (Trades, Portfolio) with 0.17%.
Textron Inc. (TXT) is trading at the price of $34.55 but the Peter Lynch Earnings line gives the company a fair price of $41.3, giving the stock a margin of safety of 16%. It is trading with a PE ratio of 13.80 that is ranked higher than 74% of its competitors in the Global Aerospace & Defense industry, and is currently -26.38% from its 52-week high and +12.58% from its 52-week low.
The company reports a cash to debt of 0.28 that is below the industry median of 0.41, with positive returns of ROE of 15.20% and ROA of 4.72% that are outperforming the 68% of its competitors. Textron is a multi-industry company that that is engaged in aircraft, defense, industrial and finance businesses to provide its customers products and services.
The company is held by five gurus. Andreas Halvorsen (Trades, Portfolio) is the largest shareholder among the gurus with a stake of 2.15% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.78%, Richard Snow (Trades, Portfolio) with 0.51% and Jim Simons (Trades, Portfolio) with 0.17%.
Alleghany Corp. (Y) is trading at the price of $466.04 but the Peter Lynch earnings line gives the company a fair price of $538.54, giving the stock a margin of safety of 13%. It is trading with a PE ratio of 13.30 that is ranked higher than 51% of its competitors in the industry, and is currently -10.11% from its 52-week high and +5.86% from its 52-week low.
The company reports a cash to debt of 0.34 that is far below the industry median of 4.81, with weak returns of ROE of 15% and ROA of 17% that are under performing the 66% of its competitors.
Alleghany Corp. is engaged in the property and casualty and surety insurance business. The company is also engaged in private capital investments in oil exploration and production, remanufacturer/retrofitter of precision machine tools and supplier of replacement parts, manufacturer of custom trailers and truck bodies.
The stock is part of five guru portfolios. First Eagle Investment (Trades, Portfolio) is the main shareholder among the gurus with a stake of 3.6% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 1.91%, Steven Romick (Trades, Portfolio) with 1.75%, Chuck Royce (Trades, Portfolio) with 1.15% and Third Avenue Management (Trades, Portfolio) with 0.58%.
Union Pacific Corp. (UNP) is trading at the price of $80 but the Peter Lynch earnings line gives to the company a fair price of $88.7, giving the stock a margin of safety of 10%. It is trading with a PE ratio of 13.80 that is ranked higher than 54% of its competitors in the Global Railroads industry, and is currently -34.10% from its 52-week high and +19.30% from its 52-week low.
The company reports a cash to debt of 0.10 that is far below the industry median of 0.38, with strong returns of ROE of 22.82% and ROA of 8.90% that are outperforming the 89% of its competitors.
Union Pacific’s operating company is Union Pacific Railroad Company, which links 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain.
The company is held by nine gurus. First Eagle Investment (Trades, Portfolio) is the largest shareholder among the gurus with a stake of 0.6% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.56%, Bill Nygren (Trades, Portfolio) with 0.35%, Pioneer Investments (Trades, Portfolio) with 0.18%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.17% and Manning & Napier Advisors with 0.15%.
McKesson Corp. (MCK) is trading at the price of $156.78 but the Peter Lynch earnings line gives to the company a fair price of $172.65, giving the stock a margin of safety of 9%. It is trading with a PE ratio of 18.70 that is ranked higher than 62% of its competitors in the Global Medical Distribution industry, and is currently -35.64% from its 52-week high and +5.73% from its 52-week low.
The company reports a cash to debt of 0.39 that is below the industry median of 0.50, with good returns of ROE of 22.46% and ROA 3.55% that are outperforming the 50% of its competitors. McKesson delivers pharmaceuticals, medical supplies and healthcare information technology that make healthcare safer while reducing costs.
The stock is part of eight guru portfolios: Vanguard Health Care Fund (Trades, Portfolio) is the main shareholder among the gurus with a stake of 2.9% of outstanding shares, followed by Andreas Halvorsen (Trades, Portfolio) with 1.21%, Larry Robbins (Trades, Portfolio) with 1.96%, Pioneer Investments (Trades, Portfolio) with 0.1%, Ray Dalio (Trades, Portfolio) with 0.02% and First Pacific Advisors (Trades, Portfolio) with 0.02%.
