6 Stocks Trading Below Peter Lynch Value

Walker & Dunlop, Methanex on the list

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Apr 24, 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.

Fabrinet (FN) is trading around $29.80 per share. The Peter Lynch value gives the stock a fair price of $52.03, which suggests it 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 9.2%.

The company provides outsourced manufacturing services to original equipment manufacturers. It has a market cap of $1.13 billion and an enterprise value of $915.12 million.

The stock is trading with a price-earnings (P/E) ratio of 12.89, which is higher than 69% of companies in the Global Consumer Electronics industry. The stock price is currently 35.60% below its 52-week high and 26.06% above its 52-week low. The price-book (P/B) ratio is 1.56.

With 6.48% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest shareholder among the gurus followed by Jim Simons (Trades, Portfolio) with 1.34% and Charles Brandes (Trades, Portfolio) with 0.39%.

Douglas Dynamics Inc. (PLOW) is trading around $44.65 per share. The Peter Lynch value gives the stock a fair price of $60, suggesting it is undervalued with a margin of safety of 24%. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 10.7%.

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The company is a manufacturer and upfitter of commercial vehicle attachments and equipment. It has a market cap of $1.03 billion and an enterprise value of $1.3 billion.

The stock is trading with a P/E ratio of 18.92 which is lower than 57% of companies in the Global Auto Parts industry. The stock price is currently 4.22% below its 52-week high and 59.02% above its 52-week low. The P/B ratio is 4.0.

The company's largest guru shareholder is Simons with 0.09% of outstanding shares, followed by Paul Tudor Jones (Trades, Portfolio) with 0.03%.

Methanex Corp. (MEOH) is trading around $66.50 per share. The Peter Lynch value gives the stock a fair price of $91.06, suggesting it is undervalued with a margin of safety of 27%. The stock started its positive upward trend three months ago; it registered a positive performance of about 13.3%.

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The company operates in the production of chemicals and has a market cap of $5.65 billion and an enterprise value of $7.04 billion.

The stock is trading with a P/E ratio of 18.33, which is higher than 62% of companies in the Global Chemicals industry. The stock price is currently 4.23% below its 52-week high and 69.24% above its 52-week low. The P/B ratio is 3.73.

Joel Greenblatt (Trades, Portfolio) is the company's largest guru shareholder with 0.22% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.01%.

Assured Guaranty Ltd. (AGO) is trading around $36.7 per share. The Peter Lynch value gives the stock a fair price of $148.25 suggesting it is undervalued with a margin of safety of 75%. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 6.5%.

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The company is a provider of insurance services that protects holders of debt instruments from defaults in scheduled payments. It has a market cap of $4.22 billion and an enterprise value of $4.74 billion.

The stock is trading with a P/E ratio of 6.19, which is higher than 92% of companies in the Global Insurance - Specialty industry. The stock price is currently 19.75% below its 52-week high and 11.31% above its 52-week low. The P/B ratio is 0.62.

The company's largest guru shareholder is Kahn Brothers (Trades, Portfolio) with 0.92% of outstanding shares, followed by Simons with 0.77% and Arnold Schneider (Trades, Portfolio) with 0.41%.

Walker & Dunlop Inc. (WD) is trading around $59.95 per share. The Peter Lynch value gives the stock a fair price of $164, suggesting it is undervalued with a margin of safety of 64%. The stock started its positive upward trend three months ago; it registered a positive performance of about 26.7%.

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The company has a market cap of $1.84 billion and an enterprise value of $2.66 billion.

The stock is trading with a P/E ratio of 9.04, which is higher than 83% of companies in the Global Specialty Finance industry. The stock price is currently 3.11% below its 52-week high and 38.98% above its 52-week low. The P/B ratio is 2.28.

Royce is the company's largest guru shareholder with 0.52% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 0.49% and Jeremy Grantham (Trades, Portfolio) with 0.12%.

Jazz Pharmaceuticals PLC (JAZZ) is trading around $157.95 per share. The Peter Lynch value gives the stock a fair price of $181.66 suggesting it is undervalued with a margin of safety of 13%. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 6.2%.

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The company operates on improving patients' lives by developing differentiated products. It has a market cap of $10.08 billion and an enterprise value of $11.06 billion.

The stock is trading with a P/E ratio of 19.87, which is higher than 67% of companies in the Global Biotechnology industry. The stock price is currently 3.54% below its 52-week high and 22.84% above its 52-week low. The P/B ratio is 3.72.

The company's largest guru shareholder is Simons with 1.95% of outstanding shares, followed by Halvorsen with 1.41% and Pioneer Investments (Trades, Portfolio) with 1.02%.

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

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