3 Stocks Trading Below Intrinsic Value
Investors looking for bargains may want to consider the following stocks, as they are trading at a discount to the intrinsic value calculated by GuruFocus' free cash flow-based Discounted Cash Flow (DCF) calculator.
These stocks have also received positive recommendation ratings from Wall street sell side analysts.
Aegon NV
The first stock to consider is Aegon NV (NYSE:AEG), a Dutch provider of diversified insurance products to clients worldwide.
Aegon NV closed at a price of $3.17 per share on Thursday, which is lower than the value of $33.05 from the DCF model, providing a 90.6% margin of safety.
The share price did not perform well over the past year, as it fell by 38.5%, determining a market capitalization of $6.51 billion and a 52-week range of $1.80 to $5.30.
GuruFocus has assigned a positive score of 5 out of 10 to the company's financial strength and a moderate score of 4 out of 10 to its profitability.
Wall Street sell-side analysts issued a hold recommendation rating and have established an average target price of $3.62 per share for the company.
The company's top fund holder is Dodge & Cox with 5.57% of shares outstanding, followed by PRIVATE MANAGEMENT GROUP INC with 0.28% and ARROWSTREET CAPITAL LIMITED PARTNERSHIP with 0.27%.
Sportsman's Warehouse Holdings Inc
The second stock to consider is Sportsman's Warehouse Holdings Inc (NASDAQ:SPWH), a West Jordan, Utah-based retailer of outdoor sporting products in the U.S.
Sportsman's Warehouse Holdings' share price traded at $15.91 at close on Thursday, reflecting a 10.9% margin of safety to the DCF valuation of $18.17.
The share price performed strongly over the past year as it increased by 271.3% for a market capitalization of $691.37 million and a 52-week range of $3.41 to $16.57.
GuruFocus has assigned a moderate score of 4 out of 10 to the company's financial strength and a very good score of 7 out of 10 to its profitability.
Wall Street sell-side analysts recommend a buy rating and have established an average target price of $15.88 per share for the stock.
With 13.96% of shares outstanding, PRICE T ROWE ASSOCIATES INC /MD/ is the company's top fund holder, followed by BlackRock Inc. with 6.83% and CANNELL CAPITAL LLC with 6.62%.
The Chefs' Warehouse Inc
The third stock under consideration is The Chefs' Warehouse Inc (NASDAQ:CHEF), a Ridgefield, Connecticut-based distributor of several specialty food products in North America.
The Chefs' Warehouse had its share price trading around $13.16 at close on Thursday, which put in slightly behind the DCF valuation of $15.77 for an 18.73% margin of safety.
The share price underperformed significantly over the past year as it lost nearly 63%, determining a market capitalization of $484.30 million and a 52-week range of $3.55 to $42.06.
GuruFocus has assigned a moderate score of 4 out of 10 to the company's financial strength and a very good score of 7 out of 10 to its profitability.
Wall Street sell-side analysts issued an overweight recommendation rating for the stock with an average target price of $19.60 per share.
The company's top fund holder is BlackRock Inc. with 12.54% of shares outstanding, followed by KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT LLC with 12.15% and VANGUARD GROUP INC with 5.88%.
Disclosure: I have no position in any security mentioned.
Read more here:
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
This article first appeared on GuruFocus.
