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6 Stocks With a Wide Margin of Safety

The Peter Lynch value suggests these companies are undervalued

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Oct 18, 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.

Greenbrier Companies Inc. (

GBX, Financial) is trading around $50.5 per share. The Peter Lynch value gives the stock a fair price of $101.25, which suggests it 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 15.3%.

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The company, which manufactures railroad freight car equipment, has a market cap of $1.44 billion and enterprise value of $1.66 billion.

The stock is trading with a price-earnings (P/E) ratio of 12.72, which is higher than 69% of companies in the Global Railroads industry. The stock price is currently 2.88% below its 52-week high and 74.44% above its 52-week low. The price-book (P/B) ratio is 1.46.

With 1.68% of outstanding shares, 

Chuck Royce (Trades, Portfolio) is the company's largest shareholder among the gurus, followed by Mario Gabelli (Trades, Portfolio) with 0.75%, Robert Olstein (Trades, Portfolio) with 0.7% and  Steven Cohen (Trades, Portfolio) with 0.64%.

Micron Technology Inc. (

MU, Financial) is trading around $40.40 per share. The Peter Lynch value gives the stock a fair price of $107.87, which suggests it is undervalued with a margin of safety of 63%. The stock started its positive upward trend three months ago; it now registers a positive performance of 27.3%.

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The semiconductor systems manufacturer has a market cap of $46.92 billion and enterprise value of $53.48 billion.

The stock is trading with a P/E ratio of 9.35, which is higher than 89% of companies in the Global Semiconductor Memory industry. The stock price is currently 3.97% below its 52-week high and 145.59% above its 52-week low. The P/B ratio is 2.41.

The company's largest guru shareholder is

PRIMECAP Management (Trades, Portfolio) with 5.3% of outstanding shares, followed by Donald Smith (Trades, Portfolio) with 1.2%, David Tepper (Trades, Portfolio) with 1.16%, Cohen with 0.27% and David Einhorn (Trades, Portfolio) with 0.24%.

Walker & Dunlop Inc. (

WD, Financial) is trading around $55.15 per share. The Peter Lynch value gives the stock a fair price of $113.25, which suggests it is undervalued with a margin of safety of 59%. The stock started its positive upward trend three months ago; it now registers a positive performance of 12.7%.

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The specialty finance company has a market cap of $1.75 billion and enterprise value of $3.41 billion.

The stock is trading with a P/E ratio of 12.35, which is higher than 67% of companies in the Global Specialty Finance industry. The stock price is currently 1.77% below its 52-week high and 132.49% above its 52-week low. The P/B ratio is 2.43.

With 0.64% of outstanding shares, Royce is the company's largest shareholder among the gurus, followed by 

Jeremy Grantham (Trades, Portfolio) with 0.2% and  Jim Simons  (Trades, Portfolio)  with 0.15%.

Centene Corp. (

CNC, Financial) is trading around $93.80 per share. The Peter Lynch value gives the stock a fair price of $114.75, which suggests it 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 12.1%.

The health care plans provider has a market cap of $15.62 billion and enterprise value of $15.43 billion.

The stock is trading with a P/E ratio of 19.60, which is lower than 57% of companies in the Global Health Care Plans industry. The stock price is currently 8.26% below its 52-week high and 81.12% above its 52-week low. The P/B ratio is 2.45.

Pioneer Investments (Trades, Portfolio) is the company's largest shareholder among the gurus with 1% of outstanding shares, followed by Tepper with 0.56%, Simons with 0.51% and

Richard Snow (Trades, Portfolio) with 0.47%.

MKS Instruments Inc. (

MKSI, Financial) is trading around $99.85 per share. The Peter Lynch value gives the stock a fair price of $120.25, which suggests it is undervalued with a margin of safety of 18%. The stock started its positive upward trend three months ago; it now registers a positive performance of 25.9%.

The scientific and technical instruments manufacturer has a market cap of $5.34 billion and enterprise value of $5.33 billion.

The stock is trading with a P/E ratio of 20.46, which is higher than 53% of companies in the Global Scientific and Technical Instruments industry. The stock price is currently 0.35% below its 52-week high and 111.57% above its 52-week low. The P/B ratio is 3.72.

The company's largest guru shareholder is Royce with 3.29% of outstanding shares, followed by Simons with 0.87% and

Joel Greenblatt  (Trades, Portfolio) with 0.27%.

Universal Forest Products Inc. (

UFPI, Financial) is trading around $97.50 per share. The Peter Lynch value gives the stock a fair price of $126.25, which suggests it 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 8.7%.

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The lumber company has a market cap of $2.14 billion and enterprise value of $2.35 billion.

The stock is trading with a P/E ratio of 19.79, which is lower than 60% of companies in the Global Lumber and Wood Production industry. The stock price is currently 8.12% below its 52-week high and 28.48% above its 52-week low. The P/B ratio is 2.27.

The company's largest shareholder among the gurus is Simons with 0.31% of outstanding shares, followed by Grantham with 0.01%.

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

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