6 Stocks Trading Below Peter Lynch Value

Companies have performed well over last 12 months

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Oct 29, 2018
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Several gurus are focusing on stocks whose Peter Lynch fair values are far above their current prices, according to the GuruFocus All-in-One Screener. The following companies are trading with wide margins of safety and have had positive performances over the last 12 months.

Companhia de Saneamento Basico (SBS, Financial) is trading around $8.07 per share. The Peter Lynch value gives the stock a fair price of $10.35, which suggests it is undervalued with a 28% margin of safety. Over the last three months, the stock has registered a positive performance of 18%.

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The Brazilian water and waste management company has a market cap of $5.5 billion and an enterprise value of $8.3 billion.

The stock is trading with a price-earnings ratio of 8.96, which is higher than 87% of companies in the Global Utilities - Regulated Water industry. The stock price is currently 30% below its 52-week high and 41% above its 52-week low. The price-book ratio is 1.04.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.66% of outstanding shares, followed by the Jeremy Grantham (Trades, Portfolio) with 0.28% and Sarah Ketterer (Trades, Portfolio) with 0.23%.

Ryman Healthcare Ltd. (RHCGF, Financial) is trading around $8.85 per share. The Peter Lynch value gives the stock a fair price of $12.04, which suggests it is undervalued with a 26% margin of safety. The stock registered a positive three-month performance of 8.5%.

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The company, which owns, develops and operates retirement facilities, has a market cap of $3.83 billion and an enterprise value of $4.52 billion.

The stock is trading with a price-earnings ratio of 15.09, which is higher than 85% of companies in the Global Long-Term Care Facilities industry. The stock price is currently 3.28% below its 52-week high and 10.63% above its 52-week low. The price-book ratio is 3.03.

Delek Drilling LP (DKDRF, Financial) is trading around $2.80 per share. The Peter Lynch value gives the stock a fair price of $17.32, which suggests it is undervalued with a 84% margin of safety. Over the last three months, the stock has risen 16.7%.

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The company, which produces oil and natural gas, has a market cap of $3.32 billion and an enterprise value of $5.11 billion.

The stock is trading with a price-earnings ratio of 4.03, which is higher than 83% of companies in the Global Oil and Gas E&P industry. The stock price is currently 8.20% below its 52-week high and 5.66% above its 52-week low. The price-book ratio is 4.72.

Sprint Corp. (S, Financial) is trading around $6.03 per share. The Peter Lynch value gives the stock a fair price of $30.95, which suggests it is undervalued with a 81% margin of safety. Over the last three months, the stock has registered a positive performance of 6.6%.

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The provider of wireless and wireline communication products and services has a market cap of $23.81 billion and an enterprise value of $56.09 billion.

The stock is trading with a price-earnings ratio of 3.23, which is higher than 97% of companies in the Global Telecom Services industry. The stock price is currently 17.16% below its 52-week high and 21.41% above its 52-week low. The price-book ratio is 0.84.

Dodge & Cox is the company's largest guru shareholder with 4.06% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.9%, Mario Gabelli (Trades, Portfolio) with 0.04% and Joel Greenblatt (Trades, Portfolio) with 0.03%.

Norway Royal Salmon ASA (NRYYF, Financial) is trading around $25 per share. The Peter Lynch value gives the stock a fair price of $31.58, which suggests it is undervalued with a 21% margin of safety. Over the last three months, the stock has risen 15.2%.

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The company, which purchases and sells farmed fish products, has a market cap of $1.23 billion and an enterprise value of $1.29 billion.

The stock is trading with a price-earnings ratio of 19.79, which is higher than 56% of companies in the Global Farm Products industry.

Altria Group Inc. (MO, Financial) is trading around $64 per share. The Peter Lynch value gives the stock a fair price of $76.58, which suggests it is undervalued with a 18% margin of safety. Over the last three months, the stock has risen 13.9%.

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The tobacco company has a market cap of $118.68 billion and an enterprise value of $130.19 billion.

The stock is trading with a price-earnings ratio of 11.37, which is higher than 80% of companies in the Global Tobacco industry. The price-book ratio is 7.66.

The company's largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 0.96% of outstanding shares, followed by Tom Russo (Trades, Portfolio) with 0.29%, Pioneer Investments (Trades, Portfolio) with 0.19%, Greenblatt with 0.05%, PRIMECAP Management with 0.03% and Simons with 0.02%.

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

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