U.S. Markets closed

8 Rising Stocks That Are Still Undervalued

- 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 positive performances over the past 12 months.


GigaMedia Ltd. (GIGM) is trading around $3.08 per share. The Peter Lynch value gives the stock a fair price of $20.75 so the stock is undervalued with a margin of safety of 89%. Twelve weeks ago the stock started its positive upward trend; it now registers a positive performance of 21.79%.

GigaMedia has online game operations in Taiwan, Hong Kong and Macau and a cloud computing software and services business based in Taipei.

The price is 15.38% below its 52-week high and 33.33% above its 52-week low. The price-book (P/B) ratio is 0.51.

Redwood Trust Inc. (RWT) is trading around $16.92 per share. The Peter Lynch value gives the stock a fair price of $22.22 so the stock is undervalued with a margin of safety of 27%. Twelve weeks ago the stock started its positive upward trend; it now registers a positive performance of 14.3%.

Redwood Trust operates as a real estate investment trust. The company together with its subsidiaries is engaged in investing in mortgage- and other real estate-related assets and engaging in residential and commercial mortgage banking activities.

The stock is trading with a price-earnings (P/E) ratio of 9.94, which is higher than 74% of companies in the Global REIT - Diversified industry. The price is 0.12% below its 52-week high and 71.26% above its 52-week low. The P/B ratio is 1.15.

Wallace Weitz (Trades, Portfolio) with 7.05% of outstanding shares is the largest investor among the gurus followed by Jim Simons (Trades, Portfolio) with 1.75% and Jerome Dodson (Trades, Portfolio) with 1.43%.

Gentex Corp. (GNTX) is trading around $20.52 per share. The Peter Lynch value gives the stock a fair price of $20.17 so the stock is undervalued with a margin of safety of 26%. Twelve weeks ago the stock started its positive upward trend; it now registers a positive performance of 15.7%.

Gentex designs and manufactures automatic-dimming rearview mirrors and electronics for the automotive industry, dimmable aircraft windows for the aviation industry and commercial smoke alarms and signaling devices for the fire protection industry.

The stock is trading with a P/E ratio of 16.99, which is higher than 52% of companies in the Global Auto Parts industry. The price is 6.26% below its 52-week high and 46.68% above its 52-week low. The P/B ratio is 3.07.

The company's largest shareholder among the gurus is Chuck Royce (Trades, Portfolio) with 2.45% of outstanding shares followed by Columbia Wanger (Trades, Portfolio) with 0.96%, Pioneer Investments (Trades, Portfolio) with 0.23%, Simons with 0.12%, Mario Gabelli (Trades, Portfolio) with 0.09%, Jeremy Grantham (Trades, Portfolio) with 0.08%, Murray Stahl (Trades, Portfolio) with 0.01% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

Network-1 Technologies Inc. (NTIP) is trading around $3.65 per share. The Peter Lynch value gives the stock a fair price of $25.5 so it is undervalued with a margin of safety of 88%. Twelve weeks ago the stock started its positive upward trend; it now registers a positive performance of 32.7%.

Network-1 Technologies is engaged in the development, licensing and protection of the intellectual property assets. It identifies and acquires intellectual property from companies and inventors and implements industrywide licensing programs.

The stock is trading with a P/E ratio of 3.58, which is higher than 98% of companies in the Global Communication Equipment industry. The price is 114.71% above its 52-week low and 12.05% below its 52-week low. The P/B ratio is 1.64.

Simons is the largest investor among the gurus with 0.93% of outstanding shares.

Maiden Holdings Ltd. (MHLD) is trading around $17 per share. The Peter Lynch value gives the stock a fair price of $26.06 so the stock is undervalued with a margin of safety of 35%. Twelve weeks ago the stock started its positive upward trend; it now registers a positive performance of 5.2%.

Maiden Holdings through its subsidiaries provides reinsurance and insurance products and services to the regional and specialty property and casualty markets. It has operations in Bermuda and the U.S. and production teams in the U.K., Germany and other markets.

The stock is trading with a P/E ratio of 11.64, which is higher than 52% of companies in the Global Insurance - Reinsurance industry. The price is 10.29% below its 52-week high and 52.60% above its 52-week low. The P/B ratio is 1.19.

The company's largest shareholder among the gurus is Paul Tudor Jones (Trades, Portfolio) with 0.05% of outstanding shares followed by Simons with 0.04%.

Southwest Georgia Financial Corp. (SGB) is trading around $21.58 per share. The Peter Lynch value gives the stock a fair price of $26.62 so the stock is undervalued with a margin of safety of 19%. Twelve weeks ago the stock started its positive upward trend; it now registers a positive performance of 29.5%.

Southwest Georgia Financial operates as the holding company for Southwest Georgia Bank. It provides financial products and services such as checking accounts, consumer loans and commercial loans among others.

The stock is trading with a P/E ratio of 13.66, which is higher than 56% of companies in the Global Banks - Regional - US industry. The price is 5.76% below its 52-week high and 65.62% above its 52-week low. The P/B ratio is 1.39.

Manulife Financial Corp. (MFC) is trading around $19.05 per share. The Peter Lynch value gives the stock a fair price of $26.95 so the stock is undervalued with a margin of safety of 27%. Twelve weeks ago the stock started its positive upward trend; it now registers a positive performance of 12.9%.

Manulife Financial together with its subsidiaries provides financial protection and wealth management products and services to personal and business clients and asset management services to institutional customers in Asia, Canada and the U.S.

The stock is trading with a P/E ratio of 17.70, which is lower than 60% of companies in the Global Insurance - Life industry, and a P/B ratio of 1.26. The price is 2.41% below its 52-week high and 57.57% above its 52-week low.

The company's largest shareholder among the gurus is Andreas Halvorsen (Trades, Portfolio) with 0.27% of outstanding shares followed by Ray Dalio (Trades, Portfolio) with 0.04%, Grantham with 0.03% and Sarah Ketterer (Trades, Portfolio) with 0.02%.

Kingstone Companies Inc. (KINS) is trading around $13.15 per share. The Peter Lynch value gives the stock a fair price of $27.49 so the stock is undervalued with a margin of safety of 52%. Twelve weeks ago the stock started its positive upward trend; it now registers a positive performance of 8.7%.

Kingstone Companies offers property and casualty insurance products to small businesses and individuals in New York state through its subsidiary, Kingstone Insurance Co.

The stock is trading with a P/E ratio of 11.85, which is higher than 77% of companies in the Global Insurance Brokers industry, and a P/B ratio of 1.82. The price is 9.00% below its 52-week high and 71.67% above its 52-week low.

Simons with 0.97% of outstanding shares is the largest investor among the gurus.

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

Start a free seven-day trial of Premium Membership to GuruFocus.

This article first appeared on GuruFocus.