U.S. Markets close in 2 hrs 47 mins

6 Stocks Trading Below Peter Lynch Value

- By Tiziano Frateschi

According to the GuruFocus All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair values are far above the current prices. The following stocks are trading with wide margins of safety and have positive performances over the past 12 months.


Lennar Corp. (LEN-B) is trading around $51 per share. The Peter Lynch value gives the stock a fair price of $69.46, which suggests it is undervalued with a 26% margin of safety. The stock started its positive upward trend three months ago; it now registers a positive performance of 17%.

1553256248.png

The homebuilding company has a market cap of $14.81 billion and an enterprise value of $20.93 billion.

The stock is trading with a price-earnings (P/E) ratio of 18.60, which is higher than 52% of companies in the Global Residential Construction industry. The stock price is currently 0.92% below its 52-week high and 51.17% above its 52-week low. The price-book (P/B) ratio is 2.01.

With 0.81% of outstanding shares, Mario Gabelli (Trades, Portfolio) is the company"s largest shareholder among the gurus, followed by Jim Simons (Trades, Portfolio) with 0.03% and Third Avenue Management (Trades, Portfolio) with 0.02%.

Selective Insurance Group Inc. (SIGI) is trading around $58 per share. The Peter Lynch value gives the stock a fair price of $72.57, suggesting it is undervalued with a 19% margin of safety. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 9.3%.

2130229256.png

The insurer has a market cap of $3.43 billion and an enterprise value of $3.65 billion.

The stock is trading with a P/E ratio of 19.50, which is lower than 64% of companies in the Global Insurance - Property and Casualty industry. The stock price is currently 5.93% below its 52-week high and 52.47% above its 52-week low. The P/B ratio is 2.02.

The company"s largest guru shareholder is Chuck Royce (Trades, Portfolio) with 0.04% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.01%.

Air Lease Corp. (AL) is trading around $48 per share. The Peter Lynch value gives the stock a fair price of $73.46, suggesting it is undervalued with a 35% margin of safety. The stock started its positive upward trend three months ago; it registers a positive performance of about 13.1%.

1791064060.png

The aircraft leasing company has a market cap of $4.96 billion and an enterprise value of $13.98 billion.

The stock is trading with a P/E ratio of 13.78, which is higher than 73% of companies in the Global Rental and Leasing Services industry. The stock price is currently 1.78% below its 52-week high and 40.57% above its 52-week low. The P/B ratio is 1.36.

Ron Baron (Trades, Portfolio) is the company"s largest guru shareholder with 2.29% of outstanding shares, followed by Royce with 1.34%, Jerome Dodson (Trades, Portfolio) with 0.43% and John Hussman (Trades, Portfolio) with 0.05%.

Best Buy Co. Inc. (BBY) is trading around $68 per share. The Peter Lynch value gives the stock a fair price of $77.38, suggesting it is undervalued with a 73% margin of safety. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 20.8%.

The consumer electronics retailer has a market cap of $20.02 billion and an enterprise value of $18 billion.

The stock is trading with a P/E ratio of 17.38, which is higher than 64% of companies in the Global Specialty Retail industry. The stock price is currently 0.74% below its 52-week high and 64.31% above its 52-week low. The P/B ratio is 4.90.

The company"s largest guru shareholder is Simons with 0.72% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.1%, Grantham with 0.1% and Manning & Napier Advisors Inc. with 0.02%.

Spirit Airlines Inc. (SAVE) is trading around $45 per share. The Peter Lynch value gives the stock a fair price of $79, suggesting it is undervalued with a 43% margin of safety. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 34.2%.

1194248920.png

The airline has a market cap of $3.11 billion and an enterprise value of $3.47 billion.

The stock is trading with a P/E ratio of 14.19, which is higher than 63% of companies in the Global Airlines industry. The stock price is currently 25.60% below its 52-week high and 47.92% above its 52-week low. The P/B ratio is 1.98.

With 5.88% of outstanding shares, Charles Brandes (Trades, Portfolio) is the company"s largest guru shareholder, followed by Grantham with 0.17%, Greenblatt with 0.1% and Simons with 0.09%.

Toll Brothers Inc. (TOL) is trading around $48 per share. The Peter Lynch value gives the stock a fair price of $79.50, suggesting it is undervalued with a 40% margin of safety. The stock started its positive upward trend three months ago; it currently registers a positive performance of about 16%.

1317431224.png

The luxury homebuilder has a market cap of $7.36 billion and an enterprise value of $9.87 billion.

The stock is trading with a P/E ratio of 15.10, which is higher than 52% of companies in the Global Residential Construction industry. The stock price is currently 5.99% below its 52-week high and 57.75% above its 52-week low. The P/B ratio is 1.68.

The company"s largest guru shareholder is Donald Smith (Trades, Portfolio) with 0.73% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.35%, Baron with 0.2% and Ruane Cunniff (Trades, Portfolio) with 0.18%.

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

This article first appeared on GuruFocus.