5 Cheap Stocks Trading Below Peter Lynch Value

Masonite International tops the list

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Jun 18, 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 performances over the past 12 months.

Masonite International Corp. (DOOR, Financial) is trading around $72.15 per share. The Peter Lynch value gives the stock a fair price of $126.75, suggesting it is undervalued with a 43% margin of safety. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 14.1%.

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The company manufactures and distributes interior and exterior doors used for residential and commercial properties. It has a market cap of $1.99 billion and an enterprise value of $2.59 billion.

The stock is trading with a price-earnings ratio of 14.27, which is higher than 68% of companies in the Global Building Materials industry. The stock price is currently 9.70% below its 52-week high and 43.15% above its 52-week low. The price-book ratio is 2.87.

The company's largest guru shareholder is Hotchkis & Wiley with 4.63% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 3.36%, Ron Baron (Trades, Portfolio) with 2.54% and Simons with 1.04%.

Centene Corp. (CNC, Financial) is trading around $123.5 per share. The Peter Lynch value gives the stock a fair price of $145.25, suggesting it is undervalued with a 15% margin of safety. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 19.3%.

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The company helps uninsured individuals access care facilities and social services. It has a market cap of $25.34 billion and an enterprise value of $24.42 billion.

The stock is trading with a price-earnings ratio of 21.26, which is lower than 67% of companies in the Global Health Care Plans industry. The stock price is currently 1.23% below its 52-week high and 59.70% above its 52-week low. The price-book ratio is 2.88.

Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder with 0.74% of outstanding shares, followed by David Tepper (Trades, Portfolio) with 0.6%, the Vanguard Health Care Fund (Trades, Portfolio) with 0.33% and Lee Ainslie (Trades, Portfolio) with 0.31%.

Asbury Automotive Group Inc. (ABG, Financial) is trading around $73 per share. The Peter Lynch value gives the stock a fair price of $149.36, suggesting it is undervalued with a 51% margin of safety. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 6%.

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The company, which owns and operates auto dealerships, has a market cap of $1.51 billion and an enterprise value of $3.06 billion.

The stock is trading with a price-earnings ratio of 10.52, which is higher than 76% of companies in the Global Auto & Truck Dealerships industry. The stock price is currently 4.25% below its 52-week high and 48.98% above its 52-week low. The price-book ratio is 3.57.

The company's largest guru shareholder is David Abrams (Trades, Portfolio) with 5.26% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.39% and Hotchkis & Wiley with 0.09%.

Magna International Inc. (MGA, Financial) is trading around $65.51 per share. The Peter Lynch value gives the stock a fair price of $152.79, suggesting it is undervalued with a 57% margin of safety. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 23.6%.

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The auto parts supplier has a market cap of $23.47 billion and an enterprise value of $26.85 billion.

The stock is trading with a price-earnings ratio of 10.65, which is higher than 82% of companies in the Global Auto Parts industry. The stock price is currently 2.90% below its 52-week high and 51.71% above its 52-week low. The price-book ratio is 2.03.

Hotchkis & Wiley is the company's largest guru shareholder with 1.3% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.1%, Pioneer Investments with 0.04% and Ray Dalio (Trades, Portfolio) with 0.01%.

LyondellBasell Industries NV (LYB, Financial) is trading around $114.15 per share. The Peter Lynch value gives the stock a fair price of $156.26, suggesting it is undervalued with a 27% margin of safety. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 5.9%.

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The company produces polyethylene oxide used in consumer and industrial products. It has a market cap of $44.94 billion and an enterprise value of $50.67 billion.

The stock is trading with a price-earnings ratio of 8.54, which is higher than 87% of companies in the Global Specialty Chemicals industry. The stock price is currently 3.92% below its 52-week high and 48.54% above its 52-week low. The price-book ratio is 4.62.

The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.5% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.17%.

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

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