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Tiziano Frateschi
Tiziano Frateschi
Articles (1181)  | Author's Website |

Peter Lynch Value to Find Undervalued Stocks

Companies have wide margins of safety and strong performances

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 have positive performances over the past 12 months.

Toll Brothers Inc. (TOL) is trading around $39.71 per share. The Peter Lynch value gives the stock a fair price of $60.50 so the stock is undervalued with a margin of safety of 34%. The stock started its positive upward trend three months ago; it now registers a positive performance of 10.3%.

Toll Brothers is a luxury homebuilder in the U.S. The company operates across 19 states and caters to move-up, active-adult and second-home buyers. It also builds luxury for-sale and for-rent properties in urban centers, primarily on the East Coast.

The stock is trading with a price-earnings (P/E) ratio of 16.42, which is lower than 51% of companies in the Global Residential Construction industry. The price is 3.31% below its 52-week high and 49.01% above its 52-week low. The price-book (P/B) ratio is 1.47.

Ken Heebner (Trades, Portfolio) with 1.8% of outstanding shares is the largest investor among the gurus followed by Donald Smith (Trades, Portfolio) with 1.39%, Ron Baron (Trades, Portfolio) with 0.2%, Ruane Cunniff (Trades, Portfolio) with 0.17% and David Dreman (Trades, Portfolio) with 0.01%.

D.R. Horton Inc. (DHI) is trading around $36.58 per share. The Peter Lynch value gives the stock a fair price of $64 so the stock is undervalued with a margin of safety of 43%. The stock started its positive upward trend three months ago; it now registers a positive performance of 9.7%.

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D.R. Horton is a residential homebuilder. It builds, for the purpose of sale, homes in the states and metropolitan markets of the U.S., under the names of D.R. Horton, America's Builder, Emerald Homes and Breland Homes.

The stock is trading with a P/E ratio of 14.29 which is higher than 59% of companies in the Global Residential Construction industry. The price is 2.30% below its 52-week high and 37.06% above its 52-week low. The P/B ratio is 1.90.

The largest shareholder among the gurus is Andreas Halvorsen (Trades, Portfolio) with 1.6% followed by Heebner with 0.88%, Jim Simons (Trades, Portfolio) with 0.12%, Ruane Cunniff with 0.12%, Joel Greenblatt (Trades, Portfolio) with 0.1% and Scott Black (Trades, Portfolio) with 0.02%.

Western Alliance Bancorp (WAL) is trading around $49.7 per share. The Peter Lynch value gives the stock a fair price of $65 so the stock is undervalued with a margin of safety of 24%. The stock started its positive upward trend three months ago; it now registers a positive performance of 5.6%.

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Western Alliance Bancorp is a bank holding company. It provides specialized banking services including deposit, lending, treasury management and online banking products and services.

The stock is trading with a P/E ratio of 19.09 that is lower than 69% of companies in the Global Banks - Regional - US industry. The price is 7.69% below its 52-week high and 49.34% above its 52-week low. The P/B ratio is 2.65.

NWQ Managers (Trades, Portfolio) with 1.79% of outstanding shares is the largest investor among the gurus followed by Steven Cohen (Trades, Portfolio) with 0.11% and Simons with 0.06%.

Ubiquiti Networks Inc. (UBNT) is trading around $52.12 per share. The Peter Lynch value gives the stock a fair price of $69.12 so the stock is undervalued with a margin of safety of 25%. The stock started its positive upward trend three months ago; it now registers a positive performance of 7.6%.

Ubiquiti Networks provides wireless and wireline network equipment for small internet service providers and small and midsize business integrators.

The stock is trading with a P/E ratio of 17.15, which is higher than 70% of companies in the Global Communication Equipment industry. The price is 19.34% below its 52-week high and 32.62% above its 52-week low. The P/B ratio is 7.73.

Chuck Akre (Trades, Portfolio) with 3.34% of outstanding shares is the largest investor among the gurus followed by Simons with 0.95%, John Hussman (Trades, Portfolio) with 0.12%, George Soros (Trades, Portfolio) with 0.06% and Greenblatt with 0.01%.

Lennar Corp. Class B (LEN.B) is trading around $45.08 per share. The Peter Lynch value gives the stock a fair price of $71.71 so the stock is undervalued with a margin of safety of 37%. The stock started its positive upward trend three months ago; it now registers a positive performance of 5.8%.

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Lennar is a homebuilding service provider. Its operations include the construction and sale of single-family attached and detached homes, and to a lesser extent multi-level residential buildings.

The stock is trading with a P/E ratio of 15.72, which is higher than 52% of companies in the Global Residential Construction industry. The price is 4.99% below its 52-week high and 40.48% above its 52-week low. The P/B ratio is 1.72.

The largest shareholder among the gurus is Mario Gabelli (Trades, Portfolio) with 0.83% followed by Simons with 0.03% and Third Avenue Management (Trades, Portfolio) with 0.02%.

Maximus Inc. (MMS) is trading around $61.7 per share. The Peter Lynch value gives the stock a fair price of $71.91 so the stock is undervalued with a margin of safety of 14%. The stock started its positive upward trend three months ago; it now registers a positive performance of 5.9%.

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Maximus provides business process services to government health and human services agencies in the U.S. and to foreign governments.

The stock is trading with a P/E ratio of 20.16 which is higher than 54% of companies in the Global Business Services industry. The price is 5.03% below its 52-week high and 41.22% above its 52-week low. The P/B ratio is 4.88.

Baron with 5.51% of outstanding shares is the largest investor among the gurus followed by Columbia Wanger (Trades, Portfolio) with 1.22%, Greenblatt with 0.12% and Chuck Royce (Trades, Portfolio) with 0.08%.

Selective Insurance Group Inc. (SIGI) is trading around $51.3 per share. The Peter Lynch value gives the stock a fair price of $73 so the stock is undervalued with a margin of safety of 30%. The stock started its positive upward trend three months ago; it now registers a positive performance of 13.5%.

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Selective Insurance Group is a holding company that offers property and casualty insurance products and services in the U.S. It offers standard commercial, standard personal and excess and surplus lines property and casualty insurance products.

The stock is trading with a P/E ratio of 17.58, which is lower than 56% of companies in the Global Insurance - Property and Casualty industry. The price is 4.56% below its 52-week high and 46.78% above its 52-week low. The P/B ratio is 1.88.

The largest shareholder among the gurus is Royce with 0.05% followed by Dreman with 0.02% and Jeremy Grantham (Trades, Portfolio) with 0.01%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

About the author:

Tiziano Frateschi
You can read about me on this blog: www.theextraincome.info

It gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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GuruFocus has detected 4 Warning Signs with Selective Insurance Group Inc $SIGI.
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