Value investors could be interested in the following stocks since their share prices are trading below their respective Peter Lynch earnings lines. This indicates they could be undervalued.
On Wall Street, these stocks have also received positive ratings from sell-side analysts.
Loews
The first stock investors could be interested in is Loews Corp. (L, Financial), a New York-based provider of various insurance products for commercial and private property.
The chart below illustrates that the share price ($52.96 at close on Sept. 24) is currently trading below the intrinsic value estimate of $85.65 calculated by the Peter Lynch earnings line.
The stock has grown 52.5% over the past year through Friday for a market capitalization of $13.63 billion and a 52-week range of $32.75 to $59.39.
The stock has a median recommendation rating of hold on Wall Street and an average target price of $52. This reflects a nearly 2% downside compared to Friday’s closing price. Analysts project earnings per share will increase by 14% per annum over the next five years.
GuruFocus has assigned a score of 3 out of 10 to the company's financial strength and 6 out of 10 to its profitability.
Vangurad Group Inc. is the largest fund holder of the company with 9.20% of shares outstanding. The investment firm is followed by T. Rowe Price with 8.02% and JPMorgan Chase with 6.64%.
Mosaic
The second stock investors could be interested in is The Mosaic Co. (MOS, Financial), a Tampa, Florida-based producer and global marketer of concentrated phosphate and potash crop nutrients.
The chart below shows that the share price ($35.86 as of Sept. 24) is currently trading below the Peter Lynch earnings line's intrinsic value estimate of $55.5.
The stock has risen by 94.2% over the past year through Friday, determining a market capitalization of $13.62 billion and a 52-week range of $16.01 to $38.23.
Wall Street sell-side analysts have issued a median recommendation rating of overweight for this stock with an average target price of $40.17, which mirrors nearly 12% upside from Friday’s closing price. Furthermore, analysts forecast that earnings per share will increase by approximately 7% every year over the next five years.
GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and 6 out of 10 to its profitability.
Vanguard Group is the largest top fund holder of the company, holding 9.95% of total shares outstanding. BlackRock Inc. and FMR LLC follow with 7.10% and 5.82%.
Campbell Soup
The third stock investors could be interested in is Campbell Soup Co. (CPB, Financial), a Camden, New Jersey-based manufacturer and marketer of food and beverage products in North America.
The chart below shows the share price ($42.43 at close on Sept. 24) is trading below the Peter Lynch earnings line's intrinsic value estimate of $49.65.
The stock has fallen by 11.6% over the past year through Friday for a market capitalization of $12.79 billion and a 52-week range of $40.05 to $53.77.
The stock has a median recommendation rating of hold on Wall Street with an average target price of $46.03 per share, which reflects a nearly 8.5% upside from Friday’s closing price. On Wall Street, the earnings per share is projected to rise 4% every year over the next five years.
GuruFocus has assigned a score of 3 out of 10 to the financial strength and of 7 out of 10 to the profitability of the company.
Vanguard Group is the largest fund holder with 7.74% of shares outstanding. It is followed by BlackRock with 5.23% and Invesco with 4.34%.
Discovery
The fourth stock investors could be interested in is Discovery Inc. (DISCA, Financial), a New York-based owner and operator of various television networks in the U.S. and internationally, as well as operator of production studios for the distribution of various content through several platforms.
The chart below shows that the share price ($25.30 as of Sept. 24) is currently trading well below the Peter Lynch earnings line of $31.2.
The stock has grown by 15.3% over the past year through Friday, determining a market capitalization of $12.68 billion and a 52-week range of $19.07 to $78.14.
Wall Street sell-side analysts have issued a median recommendation rating of overweight for the stock with an average target price of $37.89, which reflects 49.8% upside from Friday’s closing price. Furthermore, analysts forecast that the earnings per share will increase by approximately 8.3% per annum over the next five years.
GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 8 out of 10 to its profitability.
Vanguard is the largest fund holder of the company, owning 3.52% of total shares outstanding. BlackRock and Clearbridge Investments follow with 2.74% and 1.72%.
