7 Undervalued Stocks With Rising Prices

- 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 price. The following stocks are trading with wide margins of safety and have a positive performance over the past 12 months.


Flexible Solutions International Inc. (FSI) is trading around $1.52 per share. The Peter Lynch value gives the stock a fair price of $3.57, so the stock is undervalued with a margin of safety of 67%. Twelve weeks ago, the stock started its positive upward trend and it now registers a positive performance of 9.3%.

Flexible Solutions develops, manufactures and markets specialty chemicals that slow the evaporation of water.

The stock is trading with a price-earnings (P/E) ratio of 10.13, which is higher than 84% of companies in the Global Specialty Chemicals industry. The price is currently 36.93% below its 52-week high and 102.67% above its 52-week low. The price-sales (P/S) ratio is 1.14.

Jim Simons (Trades, Portfolio) increased his position in the company by 265.93% during the third quarter.

Mizuho Financial Group Inc. ADR (MFG) is trading around $3.73 per share. The Peter Lynch value gives the stock a fair price of $5.69, so the stock is undervalued with a margin of safety of 40%. Twelve weeks ago, the stock started its positive upward trend and it now registers a positive performance of 14.1%.

Mizuho Financial engages in banking, trust banking, securities and other businesses related to financial services. The company provides financial products and services in relation to deposits, lending and exchange settlement.

The stock is trading with a P/E ratio of 6.32, which is higher than 89% of companies in the Global Banks - Regional - Asia industry. The price is currently 3.62% below its 52-week high and 38.66% above its 52-week low. The P/S ratio is 1.89.

During the third quarter, Simons increased his holding by 3.89%.

Fibria Celulose SA ADR (FBR) is trading around $8.67 per share. The Peter Lynch value gives the stock a fair price of $11.23, so the stock is undervalued with a margin of safety of 27%. Twelve weeks ago, the stock started its positive upward trend and it now registers a positive performance of 11.6%.

The company produces pulp and paper in Brazil.

The stock is trading with a P/E ratio of 9.13, which is higher than 79% of companies in the Global Paper & Paper Products industry. The price is currently 20.74% below its 52-week high and 48.53% above its 52-week low. The P/S ratio is 1.58.

During the third quarter, Steven Cohen (Trades, Portfolio) and Simons reduced their positions in the company.

AudioCodes Ltd. (AUDC) is trading around $6.36 per share. The Peter Lynch value gives the stock a fair price of $12, so the stock is undervalued with a margin of safety of 50%. Twelve weeks ago, the stock started its positive upward trend and it now registers a positive performance of 19.1%.

The company designs, develops and sells voice-over-IP, converged VoIP and Data networking products and communications applications for service providers and enterprises.

The stock is trading with a P/E ratio of 13.25, which is higher than 75% of companies in the Global Communication Equipment industry. The price is currently 85.33% above its 52-week low. The P/S ratio is 0.54.

Simons increased his position by 1,032.97% during the third quarter while George Soros (Trades, Portfolio) reduced his position by 61.52%.

Medical Properties Trust Inc. (MPW) is trading around $12.91 per share. The Peter Lynch value gives the stock a fair price of $14.78, so the stock is undervalued with a margin of safety of 14%. Twelve weeks ago, the stock started its positive upward trend and it now registers a positive performance of 11%.

Medical Properties is a self-advised real estate investment trust. The company is engaged in the business of investing in, owning and leasing health care real estate. The company also makes mortgages and loans to health care operators.

The stock is trading with a P/E ratio of 13.04, which is higher than 60% of companies in the Global REIT - Healthcare Facilities industry. The price is currently 18.86% below its 52-week high and 32.14% above its 52-week low. The P/S ratio is 5.84.

Paul Tudor Jones (Trades, Portfolio) established a new position in the company during the third quarter and Keeley Asset Management Corp (Trades, Portfolio) increased its holding.

Trecora Resources (TREC) is trading around $12.4 per share. The Peter Lynch value gives the stock a fair price of $14.99, so the stock is undervalued with a margin of safety of 20%. Twelve weeks ago, the stock started its positive upward trend and it now registers a positive performance of 22.8%.

Trecora Resources is engaged in manufacturing various specialty petrochemical products.

The stock is trading with a P/E ratio of 14.76, which is higher than 64% of companies in the Global Chemicals industry. The price is currently 16.22% below its 52-week high and 51.77% above its 52-week low. The P/S ratio is 10.54.

During the third quarter, Chuck Royce (Trades, Portfolio) increased his holding while Simons reduced his position.

Tsakos Energy Navigation Ltd. (TNP) is trading around $4.69 per share. The Peter Lynch value gives the stock a fair price of $15.26, so the stock is undervalued with a margin of safety of 73%. Twelve weeks ago, the stock started its positive upward trend and it now registers a positive performance of 17%.

Tsakos Energy is engaged in the provision of international seaborne crude oil and petroleum product transportation services.

The stock is trading with a P/E ratio of 5.94, which is higher than 90% of companies in the Global Shipping & Ports industry. The price is currently 30.93% below its 52-week high and 19.64% above its 52-week low. The P/S ratio is 0.81.

Jeremy Grantham (Trades, Portfolio) and Simons reduced their holdings during the third quarter, while John Buckingham (Trades, Portfolio) added to his position.

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

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This article first appeared on GuruFocus.


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