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.
D.R. Horton Inc. (DHI, Financial) is trading around $37.16 per share. The Peter Lynch value gives the stock a fair price of $66.5, so the stock is undervalued with a margin of safety of 44%. The stock started its positive upward trend three months ago; it now registers a positive performance of 9.7%.
The construction company has a market cap of $13.91 billion and an enterprise value of $16.32 billion.
The stock is trading with a price-earnings (P/E) ratio of 13.97, which is higher than 59% of companies in the Global Residential Construction industry. The price is 1.64% below its 52-week high and 39.23% above its 52-week low. The price-book (P/B) ratio is 1.87.
With 1.36% of outstanding shares, Andreas Halvorsen (Trades, Portfolio) is the company's largest shareholder among the gurus, followed by Ken Heebner (Trades, Portfolio) with 0.35%, Ruane Cunniff (Trades, Portfolio) with 0.12% and Ken Fisher (Trades, Portfolio) with 0.11%.
Michael Kors Holdings Ltd. (KORS, Financial) is trading around $42.92 per share. The Peter Lynch value gives the stock a fair price of $74.2, so the stock is undervalued with a margin of safety of 42%. The stock started its positive upward trend three months ago; it now registers a positive performance of 23.4%.
The fashion apparel retailer has a market cap of $6.51 billion and an enterprise value of $6.39 billion.
The stock is trading with a P/E ratio of 13.13, which is higher than 80% of companies in the Global Apparel Manufacturing industry. The price is 18.51% below its 52-week high and 32.55% above its 52-week low. The P/B ratio is 4.23.
The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.41% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.25%, Ray Dalio (Trades, Portfolio) with 0.06% and Lee Ainslie (Trades, Portfolio) with 0.02%.
Ubiquiti Networks Inc. (UBNT, Financial) is trading around $57.19 per share. The Peter Lynch value gives the stock a fair price of $76.14, 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 16.8%.
The communication equipment provider has a market cap of $4.59 billion and an enterprise value of $4.25 billion.
The stock is trading with a P/E ratio of 18.50, which is higher than 70% of companies in the Global Communication Equipment industry. The price is 15.66% below its 52-week high and 25.09% above its 52-week low. The P/B ratio is 7.56.
With 3.34% of outstanding shares, Chuck Akre (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons with 0.98% and John Hussman (Trades, Portfolio) with 0.12%.
Group 1 Automotive Inc. (GPI, Financial) is trading around $66.53 per share. The Peter Lynch value gives the stock a fair price of $78.98, so the stock is undervalued with a margin of safety of 16%. The stock started its positive upward trend three months ago; it now registers a positive performance of 6.2%.
The auto and truck dealer has a market cap of $1.39 billion and an enterprise value of $4.25 billion.
The stock is trading with a P/E ratio of 10.17, which is higher than 82% of companies in the Global Auto and Truck Dealerships industry. The price is 20.02% below its 52-week high and 28.88% above its 52-week low. The P/B ratio is 1.44.
With 1.48% of outstanding shares, Paul Singer (Trades, Portfolio) is the company's largest guru shareholder, followed by Hotchkis & Wiley with 0.79%, Barrow, Hanley, Mewhinney & Strauss with 0.29% and Steven Cohen (Trades, Portfolio) with 0.06%.
Tyson Foods Inc. (TSN, Financial) is trading around $65.95 per share. The Peter Lynch value gives the stock a fair price of $83.28, so the stock is undervalued with a margin of safety of 21%. The stock started its positive upward trend three months ago; it now registers a positive performance of 6.1%.
The packaged foods manufacturer has a market cap of $23.69 billion and an enterprise value of $34.31 billion.
The stock is trading with a P/E ratio of 14.02, which is higher than 73% of companies in the Global Farm Products industry. The price is 14.27% below its 52-week high and 18.36% above its 52-week low. The P/B ratio is 2.34.
The largest shareholder among the gurus is the T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.03% of outstanding shares, followed by Cohen with 0.33%, Barrow, Hanley, Mewhinney & Strauss with 0.33%, First Eagle Investment (Trades, Portfolio) with 0.16% and PRIMECAP Management (Trades, Portfolio) with 0.15%.
United States Steel Corp. (X, Financial) is trading around $26.66 per share. The Peter Lynch value gives the stock a fair price of $90.03, so the stock is undervalued with a margin of safety of 70%. The stock started its positive upward trend three months ago; it now registers a positive performance of 22.1%.
The steel producer has a market cap of $4.66 billion and an enterprise value of $6.07 billion.
The stock is trading with a P/E ratio of 148.13, which is lower than 99% of companies in the Global Steel industry. The price is 36.27% below its 52-week high and 69.59% above its 52-week low. The P/B ratio is 1.85.
The largest shareholder among the gurus is Richard Snow (Trades, Portfolio) with 1.06% of outstanding shares, followed by Alan Fournier (Trades, Portfolio) with 0.91% and Caxton Associates (Trades, Portfolio) with 0.37%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
