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Tiziano Frateschi
Tiziano Frateschi
Articles (1593)  | Author's Website |

6 Undervalued Stocks According to Peter Lynch Value

Science Applications, Rio Tinto on the list.

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.

Science Applications International Corp. (SAIC) is trading around $87.75 per share. The Peter Lynch value gives the stock a fair price of $100.50, which suggests it 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 16.1%.

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The company provides technical, engineering and enterprise information technology services to government institutions. It has a market cap of $3.71 billion and an enterprise value of $4.59 billion.

The stock is trading with a price-earnings (P/E) ratio of 21.85, which is lower than 64% of companies in the Global Information Technology Services industry. The stock price is currently 3.40% below its 52-week high and 45.74% above its 52-week low. The price-book (P/B) ratio is 11.83.

With 0.17% of outstanding shares, Steven Cohen (Trades, Portfolio) is the company's largest shareholder among the gurus followed by Pioneer Investments (Trades, Portfolio) with 0.06%.

Kemet Corp. (KEM) is trading around $22.67 per share. The Peter Lynch value gives the stock a fair price of $106.75, suggesting it is undervalued with a margin of safety of 79%. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 23.7%.

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The company together with its subsidiaries, manufactures and sells passive electronic components. It has a market cap of $1.29 billion and an enterprise value of $1.33 billion.

The stock is trading with a P/E ratio of 5.33, which is higher than 98% of companies in the Global Electronic Components industry. The stock price is currently 17.11% below its 52-week high and 93.27% above its 52-week low. The P/B ratio is 2.75.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio) with 3.09% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 2.8%, Joel Greenblatt (Trades, Portfolio) with 1.4% and Cohen with 0.66%.

Macquarie Infrastructure Corp. (MIC) is trading around $40.52 per share. The Peter Lynch value gives the stock a fair price of $108.20, suggesting it is undervalued with a margin of safety of 63%. The stock started its positive upward trend three months ago; it registers a positive performance of about 7.1%.

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The company owns, operates, and invests in a wide group of infrastructure businesses. It has a market cap of $3.45 billion and an enterprise value of $7.2 billion.

The stock is trading with a P/E ratio of 7.25, which is higher than 86% of companies in the Global Airports & Air Services industry. The stock price is currently 49.04% below its 52-week high and 11.93% above its 52-week low. The P/B ratio is 1.07.

Mario Gabelli (Trades, Portfolio) is the company's largest guru shareholder with 1.12% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.21%, Louis Moore Bacon (Trades, Portfolio) with 0.16% and Pioneer Investments (Trades, Portfolio) with 0.05%.

InterDigital Inc. (IDCC) is trading around $82 per share. The Peter Lynch value gives the stock a fair price of $119.25, suggesting it is undervalued with a margin of safety of 31%. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 11.3%.

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The company develops technologies that enable and enhance wireless communications. It has a market cap of $2.85 billion and an enterprise value of $2.04 billion.

The stock is trading with a P/E ratio of 17.17, which is higher than 61% of companies in the Global Telecom Services industry. The stock price is currently 3.02% below its 52-week high and 21.39% above its 52-week low. The P/B ratio is 2.77.

The largest shareholder among the gurus is First Pacific Advisors (Trades, Portfolio) with 1.77% of outstanding shares, followed by Simons with 1.43% and FPA Capital Fund (Trades, Portfolio) with 0.72%.

Express Scripts Holding Co. (ESRX) is trading around $78.15 per share. The Peter Lynch value gives the stock a fair price of $120.28, suggesting it is undervalued with a margin of safety of 35%. The stock started its positive upward trend three months ago; it registers a positive performance of about 6.4%.

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The company offers healthcare management services. It has a market cap of $43.9 billion and an enterprise value of $56.57 billion.

The stock is trading with a P/E ratio of 9.83, which is higher than 55% of companies in the Global Health Care Plans industry. The stock price is currently 8.13% below its 52-week high and 40.05% above its 52-week low. The P/B ratio is 2.38.

Dodge & Cox is the company's largest guru shareholder with 6.23% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 2.56%, Larry Robbins (Trades, Portfolio) with 0.83% and Richard Pzena (Trades, Portfolio) with 0.55%.

Rio Tinto PLC ADR (RIO) is trading around $59 per share. The Peter Lynch value gives the stock a fair price of $121.74 suggesting it is undervalued with a margin of safety of 51%. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 13.4%.

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The company discovers, mines, processes and supplies metals and minerals. It has a market cap of $105.62 billion and an enterprise value of $117.71 billion.

The stock is trading with a P/E ratio of 12, which is higher than 68% of companies in the Global Industrial Metals and Minerals industry. The stock price is currently 1.78% below its 52-week high and 58.36 % above its 52-week low. The P/B ratio is 1.79.

The company's largest guru shareholder is Cohen with 0.05% of outstanding shares, followed by Ken Heebner (Trades, Portfolio) with 0.05%.

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

About the author:

Tiziano Frateschi
You can read about me on this blog: www.theextraincome.info

It gives suggestions on position trading.

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