6 Stocks Trading Below Peter Lynch Value

Companies with wide margins of safety and strong performances

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Sep 22, 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.

Gentex Corp. (GNTX, Financial) is trading around $19.39 per share. The Peter Lynch value gives the stock a fair price of $24.47, 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 6.3%.

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The auto parts manufacturer has a market cap of $5.54 billion and enterprise value of $4.78 billion.

The stock is trading with a price-earnings (P/E) ratio of 15.42, which is higher than 59% of companies in the Global Auto Parts industry. The price is 12.34% below its 52-week high and 20.73% above its 52-week low. The price-book (P/B) ratio is 2.81.

With 1.69% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder, followed by Columbia Wanger (Trades, Portfolio) with 1.01%, Jim Simons (Trades, Portfolio) with 0.1%, Mario Gabelli (Trades, Portfolio) with 0.09%.

First Horizon National Corp. (FHN, Financial) is trading around $17.96 per share. The Peter Lynch value gives the stock a fair price of $27.75, so the stock is undervalued with a margin of safety of 35%. The stock started its positive upward trend three months ago; it now registers a positive performance of 6.1%.

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The bank has a market cap of $4.21 billion and enterprise value of $5.71 billion.

The stock is trading with a P/E ratio of 16.19, which is lower than 65% of companies in the Global Banks - Regional - U.S. industry. The price is 13.82% below its 52-week high and 23.01% above its 52-week low. The P/B ratio is 1.71.

The company's largest shareholder among the gurus is Diamond Hill Capital (Trades, Portfolio) with 1.45% of outstanding shares, followed by Hotchkis & Wiley with 1.18% and Pioneer Investments (Trades, Portfolio) with 0.75%.

Gray Television Inc. (GTN, Financial) is trading around $14.5 per share. The Peter Lynch value gives the stock a fair price of $28.78, so the stock is undervalued with a margin of safety of 50%. The stock started its positive upward trend three months ago; it now registers a positive performance of 8.2%.

The TV broadcasting company has a market cap of $1.04 billion and enterprise value of $2.83 billion.

The stock is trading with a P/E ratio of 7.70, which is higher than 76% of companies in the Global Broadcasting - TV industry. The price is 6.15% below its 52-week high and 107.14% above its 52-week low. The P/B ratio is 1.58.

With 0.66% of outstanding shares, Gabelli is the company's largest investor among the gurus, followed by Simons with 0.56%.

State Bank Financial Corp. (STBZ, Financial) is trading around $27.67 per share. The Peter Lynch value gives the stock a fair price of $31.71, so the stock is undervalued with a margin of safety of 13%. The stock started its positive upward trend three months ago; it now registers a positive performance of 6.9%.

The bank holding company has a market cap of $1.08 billion and enterprise value of $1.02 billion.

The stock is trading with a P/E ratio of 21.31, which is lower than 77% of companies in the Global Banks - Regional - U.S. industry. The price is 2.50% below its 52-week high and 30.83% above its 52-week low. The P/B ratio is 1.75.

Royce is the company's largest shareholder among the gurus with 2.26% of outstanding shares, followed by Private Capital (Trades, Portfolio) with 1.7%.

Getty Realty Corp. (GTY, Financial) is trading around $28.55 per share. The Peter Lynch value gives the stock a fair price of $31.75, so the stock is undervalued with a margin of safety of 10%. The stock started its positive upward trend three months ago; it now registers a positive performance of 15.7%.

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The real estate investment trust has a market cap of $1.13 billion and enterprise value of $1.42 billion.

The stock is trading with a P/E ratio of 23.58, which is higher than 61% of companies in the Global REIT - Retail industry. The price is 1.55% below its 52-week high and 31.51% above its 52-week low. The P/B ratio is 2.26.

The company’s largest guru shareholder is Simons with 2.88% of outstanding shares, followed by Michael Price (Trades, Portfolio) with 0.09%.

Itau Unibanco Holding SA ADR (ITUB, Financial) is trading around $13.78 per share. The Peter Lynch value gives the stock a fair price of $38.03, so the stock is undervalued with a margin of safety of 64%. The stock started its positive upward trend three months ago; it now registers a positive performance of 30.7%.

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The Brazilian bank has a market cap of $89.52 billion and enterprise value of $100.22 billion.

The stock is trading with a P/E ratio of 8.38, which is higher than 76% of companies in the Global Banks - Regional - Latin America industry. The price is 2.41% below its 52-week high and 51.43% above its 52-week low. The P/B ratio is 2.04.

The largest shareholder among the gurus is Ken Fisher (Trades, Portfolio) with 0.18% of outstanding shares, followed by Howard Marks (Trades, Portfolio) with 0.14% and Dodge & Cox with 0.09%.

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