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6 Undervalued Stocks According to the Peter Lynch Fair Value

Several gurus are focusing on stocks whose Peter Lynch fair values are above their current prices, according to the GuruFocus All-in-One Screener, a Premium feature. As of Dec. 23, the following companies are trading with wide margins of safety and have had positive performances over the last 12 months, in addition to trading at below their Peter Lynch fair value.


IES Holdings Inc.

IES Holdings Inc. (IESC) is trading around $25.40 per share as of Dec. 23. The Peter Lynch fair value $39, which suggests it is undervalued with a 35% margin of safety. Over the past three months, the stock has registered a positive performance of 25.65%.

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The company, which operates in the construction industry, has a market cap of $534.88 million and an enterprise value of $516.24 million.

The stock is trading with a price-earnings ratio of 16.21, which is higher than 63% of competitors. The share price is currently 7.06% below its 52-week high and 73.03% above its 52-week low. The price-book ratio is 2.18.

The company's largest guru shareholder is Chuck Royce (Trades, Portfolio) with 5.55% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 1.47%.

Changyou.com Ltd.

Changyou.com Ltd. (CYOU) is trading around $9.80 per share as of Dec. 23. The Peter Lynch fair value is $19.91, which suggests it is undervalued with an 51% margin of safety. The stock registered a positive three-month performance of 6.21%.

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The Chinese internet gaming company has a market cap of $519.19 million and an enterprise value of $272.38 million.

The stock is trading with a price-earnings ratio of 4.18, which is higher than 96% of companies in the interactive media industry. The share price is currently 56.22% below its 52-week high and 79.56% above its 52-week low. The price-book ratio is 1.44.

Simons' firm is the company's largest guru shareholder with 2.32% of outstanding shares, followed by Caxton Associates (Trades, Portfolio) with 0.05% and Jeremy Grantham (Trades, Portfolio)'s GMO LLC with 0.04%.

CAI International Inc.

CAI International Inc. (CAI) is trading around $29.08 per share as of Dec. 23. The Peter Lynch fair value is $46.19, which suggests it is undervalued with a 37% margin of safety. Over the past three months, the stock has risen 28.79%.

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The global transportation finance and logistics company has a market cap of $506.74 million and an enterprise value of $2.69 billion.

The stock is trading with a price-earnings ratio of 16.46, which is lower than 56% of companies in the business services industry. The share price is currently 1.42% below its 52-week high and 62.73% above its 52-week low. The price-book ratio is 0.87.

The company's largest guru shareholder is Donald Smith (Trades, Portfolio) with 0.28% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.23%.

Ryerson Holding Corp.

Ryerson Holding Corp. (RYI) is trading around $12 per share. The Peter Lynch value gives the stock a fair price of $13.34, which suggests it is undervalued with a 12% margin of safety.

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The company, which processes and distributes metals, has a market cap of $443.58 million and an enterprise value of $1.59 billion. Over the past three months, the stock has registered a positive performance of 11.21%.

The stock is trading with a price-earnings ratio of 8.04, which is higher than 85% of companies in the industrial products industry. The share price is currently 4.36% below its 52-week high and 95.99% above its 52-week low. The price-book ratio is 3.28.

Grantham's GMO LLC is the company's largest guru shareholder with 0.15% of outstanding shares.

Miller Industries Inc.

Miller Industries Inc. (MLR) is trading around $37.50 per share as of Dec. 23. The Peter Lynch fair value is $57.02, which suggests the company is undervalued with a 35% margin of safety. Over the past three months, the stock has risen 8.05%.

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The company, which manufactures towing and recovery equipment, has a market cap of $421.92 million and an enterprise value of $406.39 million.

The stock is trading with a price-earnings ratio of 11.01, which is higher than 67% of companies in the vehicles and parts industry. The share price is currently 3.06% below its 52-week high and 43.23% above its 52-week low.

The company's largest guru shareholder is Royce with 11.61% of outstanding shares, followed by HOTCHKIS & WILEY with 8.10%, Simons' firm with 0.79% and Robert Olstein (Trades, Portfolio) with 0.34%.

Earthstone Energy Inc.

Earthstone Energy Inc. (ESTE) is trading around $6.41 per share as of Dec. 23. The Peter Lynch fair value for the company is $18.66, which suggests it is undervalued with a 66% margin of safety. The stock registered a positive three-month performance of 50.47%.

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The oil and natural gas development and production company has a market cap of $413.87 million and an enterprise value of $1.03 billion.

The stock is trading with a price-earnings ratio of 4.68, which is higher than 83% of companies in the oil and gas industry. The share price is currently 19.27% below its 52-week high and 113.67% above its 52-week low. The price-book ratio is 1.20.

HOTCHKIS & WILEY is the company's largest guru shareholder with 1.64% of outstanding shares.

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

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This article first appeared on GuruFocus.