According to the GuruFocus All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair values are far above the current prices. The following stocks are trading with wide margins of safety and at least five gurus are shareholders.
Akorn Inc. (AKRX, Financial) is trading around $20 per share. The Peter Lynch value gives the stock a fair price of $37, so the stock is undervalued with a margin of safety of 46%.
The company manufactures and markets a full line of diagnostic and therapeutic ophthalmic pharmaceuticals as well as niche hospital drugs and injectable pharmaceuticals.
The stock is trading with a price-earnings (P/E) ratio of 13.86. The price is currently 42.03% below its 52-week high and 16.79% above its 52-week low. The price-sales (P/S) ratio is 2.32 and the forward P/E ratio is 9.37.
John Paulson (Trades, Portfolio) is the largest shareholder among the gurus with 7.17% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 0.85%.
Credit Acceptance Corp. (CACC, Financial) is trading around $203 per share. The Peter Lynch value gives the stock a fair price of $641.9, so the stock is undervalued with a margin of safety of 68%.
The company offers automobile dealers financing programs that enable them to sell vehicles to consumers regardless of their credit history.
The stock is trading with a P/E ratio of 12.86. The price is currently 9.08% below its 52-week high and 26.54% above its 52-week low. The P/S ratio is 4.49 and the forward P/E ratio is 11.75.
Seth Klarman (Trades, Portfolio) is the main shareholder among the gurus with 0.49% of outstanding shares, followed by George Soros (Trades, Portfolio) with 0.17%.
AutoNation Inc. (AN, Financial) is trading around $52 per share. The Peter Lynch value gives the stock a fair price of $67.06, so the stock is undervalued with a margin of safety of 24%.
The company is an automotive retailer in the United States. It offers automotive products and services, including new vehicles, used vehicles, parts and accessories, automotive services, automotive finance and insurance products.
The stock is trading with a P/E ratio of 13.25. The price is currently 4.54% below its 52-week high and 31.59% above its 52-week low. The P/S ratio is 0.26 and the forward P/E ratio is 12.02.
ESL Partners LP is the main shareholder among the gurus with 16.47% of outstanding shares, followed by Edward Lampert (Trades, Portfolio) with 6.03%.
Southwest Airlines Co. (LUV, Financial) is trading around $51 per share. The Peter Lynch value gives the stock a fair price of $87.75, so the stock is undervalued with a margin of safety of 41%.
Southwest is an operator of passenger airlines that provides scheduled air transportation in the U.S. and international markets.
The stock is trading with a P/E ratio of 14.56. The price is currently 2.13% below its 52-week high and 50.44% above its 52-week low. The P/S ratio is 1.62 and the forward P/E ratio is 13.55.
PRIMECAP Management (Trades, Portfolio) is the main shareholder among the gurus with 11.77% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.55%.
LyondellBasell Industries NVÂ (LYB, Financial) is trading around $91 per share. The Peter Lynch value gives the stock a fair price of $126.57, so the stock is undervalued with a margin of safety of 29%.
The company produces polypropylene and polypropylene compounds, propylene oxide, polyethylene, ethylene and propylene. It also provides technology licenses.
The stock is trading with a P/E ratio of 10.04 and is currently 3.05% below its 52-week high and 30.18% above its 52-week low. The P/S ratio is 1.38 and the forward P/E ratio is 9.42.
Andreas Halvorsen (Trades, Portfolio) is the largest shareholder among the gurus with 0.97% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.28% and Jeremy Grantham (Trades, Portfolio) with 0.27%.
Delta Air Lines Inc. (DAL, Financial) is trading around $50.5 per share. The Peter Lynch value gives the stock a fair price of $144.25, so the stock is undervalued with a margin of safety of 65%.
The company provides scheduled air transportation for passengers and cargo throughout the U.S. and around the world. The company's business segments are airline and refinery.
The stock is trading with a P/E ratio of 8.75 and is currently 4.28% below its 52-week high and 54.91% above its 52-week low. The P/S ratio is 0.96 and the forward P/E ratio is 10.06.
PRIMECAP Management is the main shareholder among the gurus with 2.7% of outstanding shares, followed by Warren Buffett (Trades, Portfolio) with 0.86%, Grantham with 0.24%, Joel Greenblatt (Trades, Portfolio) with 0.23% and Leon Cooperman (Trades, Portfolio) with 0.13%.
Biogen Inc. (BIIB, Financial) is trading around $281 per share. The Peter Lynch value gives the stock a fair price of $503.89, so the stock is undervalued with a margin of safety of 44%.
It is a biopharmaceutical company that discovers, develops, manufactures and markets therapies for neurological, autoimmune and hematologic disorders.
The stock is trading with a P/E ratio of 15.86 and is currently 15.88% below its 52-week high and 25.85% above its 52-week low. The P/S ratio is 5.46 and the forward P/E ratio is 13.62.
PRIMECAP Management is the main shareholder among the gurus with 7.21% of outstanding shares, followed by Vanguard Health Care Fund (Trades, Portfolio) with 1.73%, Frank Sands (Trades, Portfolio) with 1.28%, Halvorsen with 1% and Spiros Segalas (Trades, Portfolio) with 0.54%.
Dow Chemical Co. (DOW, Financial) is trading around $57 per share. The Peter Lynch value gives the stock a fair price of $73.77, so the stock is undervalued with a margin of safety of 22%.
It is as an integrated science and technology company that operates in five segments: Agricultural Sciences, Consumer Solutions, Infrastructure Solutions, Performance Materials and Chemicals and Performance Plastics.
The stock is trading with a P/E ratio of 9.11 and is currently 3.29% below its 52-week high and 41.02% above its 52-week low. The P/S ratio is 1.45 and the forward P/E ratio is 13.66.
Daniel Loeb (Trades, Portfolio) is the largest shareholder among the gurus with 1.64% of outstanding shares, followed by Larry Robbins (Trades, Portfolio) with 0.48% and Pioneer Investments with 0.22%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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