5 Stocks Trading Below the Peter Lynch Value Line

Starbucks makes the list

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Dec 12, 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 performance over the last 12 months.

Federated Investors Inc. Class B (FII) is trading around $25 per share. The Peter Lynch value gives the stock a fair price of $27.97, which suggests it is undervalued with a 11% margin of safety. Over the last three months, the stock has registered a positive performance of 9.5%.

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The provider of the investment management products and related financial services has a market cap of $2.5 billion and an enterprise value of $2.5 billion.

The stock is trading with a price-earnings ratio of 8.67, which is higher than 75% of companies in the Global Asset Management industry. The stock price is currently 32.29% below its 52-week high and 12.83% above its 52-week low. The price-book ratio is 3.02.

The company's largest guru shareholder is Chuck Royce (Trades, Portfolio) with 1.5% of outstanding shares followed by Pioneer Investments (Trades, Portfolio) with 0.33% and Ronald Muhlenkamp (Trades, Portfolio) with 0.25%.

InterRent Real Estate Investment Trust (IIPZF) is trading around $9.84 per share. The Peter Lynch value gives the stock a fair price of $32.34, which suggests it is undervalued with a 70% margin of safety. The stock registered a positive three-month performance of 16.9%.

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The open-ended real estate investment trust, has a market cap of $1.05 billion and an enterprise value of $1.65 billion.

The stock is trading with a price-earnings ratio of 7.62, which is higher than 92% of companies in the Global REIT - Residential industry. The price-book ratio is 1.25.

Valero Energy Partners LP (VLP) is trading around $42.02 per share. The Peter Lynch value gives the stock a fair price of $71.13 which suggests it is undervalued with a 41% margin of safety. Over the last three months, the stock has risen 16.8%.

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The company, which transports crude and refined product, has a market cap of $2.91 billion and an enterprise value of $4.06 billion.

The stock is trading with a price-earnings ratio of 14.74, which is higher than 65% of companies in the Global Oil and Gas Midstream industry. The stock price is currently 13.65% below its 52-week high and 26.38% above its 52-week low. The price-book ratio is 10.64.

T Boone Pickens (Trades, Portfolio) is the company's largest guru shareholder with 0.18% of outstanding shares followed by Jim Simons (Trades, Portfolio) with 0.11%.

AMN Healthcare Services Inc. (AMN) is trading around $60 per share. The Peter Lynch value gives the stock a fair price of $75.25, which suggests it is undervalued with a 21% margin of safety. Over the last three months, the stock has registered a positive performance of 10.6%.

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The health care staffing firm has a market cap of $2.8 billion and an enterprise value of $3.25 billion.

The stock is trading with a price-earnings ratio of 19.85, which is higher than 65% of companies in the Global Medical Care industry. The stock price is currently 12.40% below its 52-week high and 27.79% above its 52-week low. The price-book ratio is 4.56.

Royce is the company's largest guru shareholder with 0.42% of outstanding shares followed by Joel Greenblatt (Trades, Portfolio) with 0.32%, Third Avenue Management (Trades, Portfolio) with 0.12% and Hotchkis & Wiley with 0.05%.

Starbucks Corp. (SBUX) is trading around $65.47 per share. The Peter Lynch value gives the stock a fair price of $80.50, which suggests it is undervalued with a 9% margin of safety. Over the last three months, the stock has risen 19.8%.

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The retailer of specialty coffee has a market cap of $82.56 billion and an enterprise value of $83.07 billion.

The stock is trading with a price-earnings ratio of 20.33, which is higher than 74% of companies in the Global Restaurants industry. The stock price is currently 5.09% below its 52-week high and 38.21% above its 52-week low. The price-book ratio is 73.31.

The company's largest guru shareholder is Frank Sands (Trades, Portfolio) with 0.4% of outstanding shares followed by Pioneer Investments (Trades, Portfolio) with 0.25%, Jerome Dodson (Trades, Portfolio) with 0.04%, Tom Gayner (Trades, Portfolio) with 0.03% and Smead Capital Management, Inc. (Trades, Portfolio) with 0.03%.

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

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