3 Stocks Trading Below the Peter Lynch Earnings Line
- By Alberto Abaterusso
Value investors may want to have a look at the following securities, as their share prices are trading below the Peter Lynch earnings line. This suggests that they could represent buying opportunities.
Sell-side analysts on Wall Street also recommend positive ratings for these securities.
Douglas Emmett Inc
The first stock to have a look at is Douglas Emmett Inc (NYSE:DEI), a Santa Monica, California-based self-administered real estate investment trust company owning and operating top-class office and multifamily properties located along the Los Angeles and Honolulu coasts.
The below chart exhibits that the share price ($25.36 at close on Nov. 6) currently stands below the Peter Lynch earnings line ($26.40 as of Sept. 28) for a margin safety of 4%.
The stock price lost 41.3% over the past year through Friday, determining a market capitalization of $4.45 billion and a 52-week range of $22.88 to $45.59.
Wall Street sell-side analysts predict that the share price will trade higher over the next 12 months, rising 17.5% up to the average target price of $29.79 per share. The stock holds an overweight recommendation rating.
GuruFocus has assigned a score of 3 out of 10 to the financial strength and 7 out of 10 to the profitability of the company.
VANGUARD GROUP INC dominates the group of top fund holders of the company as it owns 13.74% of shares outstanding. It is followed by BlackRock Inc. with 10.98% and STATE STREET CORP with 4.37%.
GATX Corp
The second stock to have a look at is GATX Corp (NYSE:GATX), a Chicago, Illinois-based rental and leasing services provider focusing on the rail and marine markets worldwide.
The below chart shows that the stock price ($71.96 per share as of Nov. 6) currently trades below the Peter Lynch earnings line ($79.65 as of Sept. 28), generating a margin safety of 10%.
The stock price has decreased by 13.6% over the past year through Friday, determining a market capitalization of $2.52 billion and a 52-week range of $50.69 to $86.01.
Wall Street sell-side analysts predict that the share price will outperform within a year, as the stock holds an overweight recommendation rating and an average target of $75.
GuruFocus has assigned a score of 3 out of 10 to the financial strength and 7 out of 10 to the profitability of the company.
STATE FARM MUTUAL AUTOMOBILE INSURANCE CO leads the group of the company's top fund holders, owning 17.39% of shares outstanding, followed by BlackRock Inc. with 13.15% and VANGUARD GROUP INC with 10.84%.
Weingarten Realty Investors
The third stock to have a look at is Weingarten Realty Investors (NYSE:WRI), a Houston, Texas-based real estate investment trust firm owning and operating shopping centers for about 21 million square feet of leasable area located in 15 states.
The below chart illustrates that the stock price ($15.91 per share at close on Nov. 6) is currently below the Peter Lynch earnings line ($19.20 as of Sept. 28), yielding a margin safety of 17.14%.
The stock price lost 48.6% over the past year through Friday, which determined a market capitalization of $2.04 billion and a 52-week range of $12.21 to $32.17.
The share price is expected to perform well over the next 52 weeks, gaining 25.4% from its close on Friday up to an average target price of $19.95. The stock has a hold recommendation rating on Wall Street.
GuruFocus has assigned a score of 3 out of 10 to the financial strength and 6 out of 10 to the profitability of the company.
VANGUARD GROUP INC leads the group of the company's top fund holders, owning 13.63% of shares outstanding. It is followed by BlackRock Inc. with 10.57% and JPMORGAN CHASE & CO with 8.38%.
Disclosure: I have no position in any security mentioned.
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This article first appeared on GuruFocus.
