Value investors may want to consider the following stocks, as their share prices are standing below the Peter Lynch earnings line, indicating they could be undervalued. Sell-side analysts on Wall Street have also issued positive ratings for these stocks.

Axos Financial Inc

The first stock to consider is Axos Financial Inc (AX), a Las Vegas, Nevada-based regional bank providing banking products and other financial services to U.S. consumers and businesses.

The below chart shows that the share price ($41.02 at close on Jan. 21) is currently trading below the Peter Lynch earnings line ($48.15 as of Sept. 28, 2020).

Picking stocks that more than double the earnings return that 20-year high-quality corporate bonds grant to their possessors enhances the number of possibilities to find value opportunities.

The 20-year high-quality corporate bonds offer an average monthly spot rate of 3.49% as of Nov. 26. These securities represent corporate loans issued by triple-A, double-A and single-A companies with a very low risk of bankruptcy.

Therefore, the following stocks grant earnings return of more than 6.98% and are trading their earnings for less than 14.33 times their price. The earnings return is the inverse of the price-earnings ratio.

PulteGroup

Shares of

According to the GuruFocus All-in-One Screener, the following stocks have high dividend yields but performed poorly over the last 12 months.

Anworth Mortgage Asset Corp. (ANH)’s dividend yield is 12.75% with a payout ratio of 157%. Over the last 52 weeks, the share price has fallen 5.5%. The stock is trading with a price-sales ratio of 8.41 and a price-earnings ratio of 11.8.

The company, which operates in the business of investment, financing and management, has a market cap of $432.26 million and a profitability and growth rating of 1 out of 10.