6 Undervalued Stocks Trading Below Peter Lynch Value

Aaron's, Ply Gem on the list

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Apr 12, 2018
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Several gurus are focusing on stocks whose Peter Lynch fair values are far above the current prices, according to the GuruFocus All-in-One Screener. The following stocks are trading with wide margins of safety and have positive performance over the past 12 months.

Ply Gem Holdings Inc. (PGEM) is trading around $21.65 per share. The Peter Lynch value gives the stock a fair price of $24.75, which suggests it is undervalued with a margin of safety of 13%. The stock started its positive upward trend three months ago; it registered a positive performance of 21.6% as of Thursday.

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The company manufactures exterior building products in North America. It has a market cap of $1.48 billion and an enterprise value of $2.22 billion.

The stock is trading with a price-earnings (P/E) ratio of 21.87, which is lower than 60% of companies in the Global Building Materials industry. The stock price is currently 2.48% below its 52-week high and 48.80% above its 52-week low. The price-book (P/B) ratio is 18.12.

With 2.8% of outstanding shares, Richard Pzena (Trades, Portfolio) is the company's largest shareholder among the gurus followed by Jim Simons (Trades, Portfolio) with 2.21%, Chuck Royce (Trades, Portfolio) with 0.82% and Jeremy Grantham (Trades, Portfolio) with 0.02%.

Criteo SA ADR (CRTO) is trading around $27.69 per share. The Peter Lynch value gives the stock a fair price of $33.50, suggesting it is undervalued with a margin of safety of 18%. The stock started its positive upward trend three months ago; it registered a positive performance of about 10.4% as of Thursday.

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The technology company provides digital performance marketing. It has a market cap of $1.82 billion and an enterprise value of $1.43 billion.

The stock is trading with a P/E ratio of 20.61, which is higher than 70% of companies in the Global Internet Content & Information industry. The stock price is currently 50.71% below its 52-week high and 31.43% above its 52-week low. The P/B ratio is 2.04.

The company's largest guru shareholder is Oakmark Intl Small Cap (Trades, Portfolio) with 3.78% of outstanding shares, followed by IVA International Fund (Trades, Portfolio) with 0.89%, Charles de Vaulx (Trades, Portfolio) with 0.89% and Pioneer Investments (Trades, Portfolio) with 0.45%.

Sprint Corp. Series 1 (S) is trading around $6.02 per share. The Peter Lynch value gives the stock a fair price of $34.41, suggesting it is undervalued with a margin of safety of 83%. The stock started its positive upward trend three months ago; it registered a positive performance of about 7.1%.

The communications company offers wireless and wireline communications products and services. It has a market cap of $24.1 billion and an enterprise value of $56.42 billion.

The stock is trading with a P/E ratio of 3.47, which is higher than 99% of companies in the Global Telecom Services industry. The stock price is currently 34.71% below its 52-week high and 25.16% above its 52-week low. The P/B ratio is 0.92.

Dodge & Cox is the company's largest guru shareholder with 4.14% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.92%, Simons with 0.11% and Mario Gabelli (Trades, Portfolio) with 0.05%.

Ternium SA ADR (TX) is trading around $35.71 per share. The Peter Lynch value gives the stock a fair price of $51.03, suggesting it is undervalued with a margin of safety of 31%. The stock started its positive upward trend three months ago; it registered a positive performance of about 7.9%.

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The producer of steel products has a market cap of $6.94 billion and an enterprise value of $10.61 billion.

The stock is trading with a P/E ratio of 7.92, which is higher than 81% of companies in the Global Steel industry. The stock price is currently 10.41% below its 52-week high and 55.27% above its 52-week low. The P/B ratio is 1.40.

The company's largest guru shareholder is Simons with 0.29% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.16%.

Acadia Healthcare Co. Inc. (ACHC) is trading around $39.74 per share. The Peter Lynch value gives the stock a fair price of $57.25, suggesting it is undervalued with a 31% margin of safety. The stock started its positive upward trend three months ago; it registered a positive performance of about 20.4%.

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The company operates mental health care facilities in the U.S. It has a market cap of $3.51 billion and an enterprise value of $6.68 billion.

The stock is trading with a P/E ratio of 17.38, which is higher than 75% of companies in the Global Medical Care industry. The stock price is currently 26.87% below its 52-week high and 47.62% above its 52-week low. The P/B ratio is 1.39.

Vanguard Health Care Fund (Trades, Portfolio) is the company's largest guru shareholder with 5.21% of outstanding shares, followed by Alan Fournier (Trades, Portfolio) with 1.45%, Chuck Royce (Trades, Portfolio) with 0.29% and Ken Fisher (Trades, Portfolio) with 0.23%.

Aaron's Inc. (AAN) is trading around $46.25 per share. The Peter Lynch value gives the stock a fair price of $79.98 suggesting it is undervalued with a margin of safety of 42%. The stock started its positive upward trend three months ago; it registered a positive performance of about 18.6%.

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The retailer of furniture, consumer electronics, computers, appliances and household accessories has a market cap of $2.25 billion and an enterprise value of $3.55 billion.

The stock is trading with a P/E ratio of 11.42, which is higher than 72% of companies in the Global Rental & Leasing Services industry. The stock price is currently 6.75% below its 52-week high and 54.85% above its 52-week low. The P/B ratio is 1.89.

The company's largest guru shareholder is Diamond Hill Capital (Trades, Portfolio) with 3.06% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 1.04% and First Pacific Advisors (Trades, Portfolio) with 0.85%.

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