6 Undervalued Stocks Based on the Peter Lynch Value

Companies have wide margins of safety and strong performances

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Tiziano Frateschi
Aug 03, 2017
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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.

National Health Investors Inc. (

NHI, Financial) is trading around $75.80 per share. The Peter Lynch value gives the stock a fair price of $89.73, 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 05.4%.

The company is a real estate investment trust (REIT) that invests in various health care facilities.

The stock is trading with a price-earnings (P/E) ratio of 118.76, which is lower than 56% of companies in the Global REIT - Healthcare Facilities industry. The price is 6.40% below its 52-week high and 16.50% above its 52-week low. The price-book (P/B) ratio is 2.41.

With 0.16% of outstanding shares,

Jim Simons (Trades, Portfolio) is the largest investor among the gurus, followed by Paul Tudor Jones (Trades, Portfolio) with 0.01%.

Evercore Partners Inc. (

EVR, Financial) is trading around $78.45 per share. The Peter Lynch value gives the stock a fair price of $95.25, so the stock is undervalued with a margin of safety of 17%. The stock started its positive upward trend three months ago; it now registers a positive performance of 56%.

Evercore is an investment banking and investment management firm. It provides financial advisory services for mergers, acquisitions, divestitures and other strategic corporate transactions.

The stock is trading with a P/E ratio of 19.96, which is higher than 56% of companies in the Global Capital Markets industry. The price is 5.58% below its 52-week high and 61.33% above its 52-week low. The P/B ratio is 5.78.

The largest shareholder among the gurus is Simons with 3.01% of outstanding shares, followed by

Mariko Gordon (Trades, Portfolio) with 1.78%, Ken Fisher (Trades, Portfolio) with 0.16% and Jones with 0.03%.

Icon PLC ADR(

ICLR, Financial) is trading around $106.32 per share. The Peter Lynch value gives the stock a fair price of $123.5, 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 25.1%.

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The contract research company provides outsourced development services to the pharmaceutical, biotechnology and medical device industries.

The stock is trading with a P/E ratio of 21.53, which is higher than 79% of companies in the Global Diagnostics and Research industry. The price is 2.74% below its 52-week high and 44.14% above its 52-week low. The P/B ratio is 5.63.

With 1.77% of outstanding shares, Simons is the largest investor among the gurus, followed by

Ron Baron (Trades, Portfolio) with 1.53%, Steven Cohen (Trades, Portfolio) with 0.68% and Chuck Royce (Trades, Portfolio) with 0.27%.

Lincoln National Corp. (

LNC, Financial) is trading around $73.30 per share. The Peter Lynch value gives the stock a fair price of $104.68, 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 11.3%.

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Lincoln National offers individual and group insurance, retirement and investment products in the U.S. and the United Kingdom.

The stock is trading with a P/E ratio of 11.98, which is higher than 72% of companies in the Global Insurance - Life industry. The price is 0.38% below its 52-week high and 72.96% above its 52-week low. The P/B ratio is 1.10.

Pioneer Investments (Trades, Portfolio), with 0.48% of outstanding shares, is the company's largest guru shareholder, followed by Andreas Halvorsen (Trades, Portfolio) with 0.3%, Simons with 0.09%, Cohenwith 0.07%, Jeremy Grantham (Trades, Portfolio) with 0.03%, Keeley Asset Management Corp (Trades, Portfolio) with 0.02% and Joneswith 0.01%.

LyondellBasell Industries NV(

LYB, Financial) is trading around $88.37 per share. The Peter Lynch value gives the stock a fair price of $125.02, so the stock is undervalued with a margin of safety of 29%. The stock started its positive upward trend three months ago; it now registers a positive performance of 6.9%.

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LyondellBasell produces polyethylene and propylene oxide, which is used in various consumer and industrial end products.

The stock is trading with a P/E ratio of 9.83, which is higher than 85% of companies in the Global Specialty Chemicals industry. The price is 9.49% below its 52-week high and 23.51% above its 52-week low. The P/B ratio is 5.17.

The largest shareholder among the gurus is Halvorsen with 0.61% of outstanding shares, followed by

Stanley Druckenmiller (Trades, Portfolio) with 0.29%, Barrow, Hanley, Mewhinney & Strauss with 0.23%, Granthamwith 0.14%, Joel Greenblatt (Trades, Portfolio) with 0.06%, Cohen with 0.04%, Manning & Napier Advisors Inc. with 0.02%, Ray Dalio (Trades, Portfolio) with 0.02% and Pioneer Investments with 0.02%.

Tesoro Corp. (

TSO, Financial) is trading around $99.74 per share. The Peter Lynch value gives the stock a fair price of $131.9, 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 26.1%.

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Tesoro produces and sells refined petroleum products. It also operates retail fuel outlets.

The stock is trading with a P/E ratio of 16.64, which is lower than 63% of companies in the Global Oil and Gas Refining and Marketing industry. The price is 0.23% below its 52-week high and 36.75% above its 52-week low. The P/B ratio is 2.13.

The largest shareholder among the gurus is Cohenwith 2.87% of outstanding shares, followed by

Lee Ainslie (Trades, Portfolio) with 2.13%, Granthamwith 0.14%, Pioneer Investments with 0.14% and Manning & Napier with 0.01%.

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

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