4 Stocks That Appear to Be Undervalued by the Market

These stocks could be value opportunities

Summary
  • Lumber Liquidators Holdings, Lazydays Holdings, Celestica and Owens & Minor are trading at a discount to their DCF values.
  • Wall Street is positive about these stocks.
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When seeking value opportunities, investors could be interested in the following stocks, since their prices are trading at a discount to the intrinsic value calculated by GuruFocus' earnings-based discounted cash flow calculator.

Furthermore, sell-side analysts on Wall Street have issued positive recommendation ratings for these stocks, indicating they expect share prices to rise.

Lumber Liquidators Holdings Inc

The first stock that holds the criteria is Lumber Liquidators Holdings, Inc. (LL, Financial), a Richmond, Virginia-based operator of a specialty retailer of hard-surface flooring and hard-surface flooring enhancements and accessories.

The stock was trading around $18.08 per share at close on Friday, which is below the intrinsic value of $34.68 from the DCF model, yielding a 47.87% margin of safety.

The share price declined nearly 30% over the past year, determining a market capitalization of $525.80 million and a 52-week range of $17.45 to $35.10.

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GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 5 out of 10 to its profitability.

On Wall Street, the stock has a recommendation rating of hold and a target price of $20.50 per share.

BlackRock Inc. and PRICE T ROWE ASSOCIATES INC /MD/are the company's top fund holders with 15.99% and 12.85% of its shares outstanding, respectively.

Lazydays Holdings Inc

The second stock that meets the criteria is Lazydays Holdings, Inc. (LAZY, Financial), a Seffner, Florida-based operator of recreation vehicle (RV) dealerships under the Lazydays name in the United States.

The stock was trading around $21.09 per share at close on Friday, which stands below the intrinsic value of $40.74 from the DCF model, yielding a 48.23% margin of safety.

The share price jumped by nearly 50% over the past year, determining a market capitalization of $238.94 million and a 52-week range of $12.67 to $25.74.

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GuruFocus has assigned a score of 6 out of 10 to the company's financial strength and 3 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $28.50 per share.

Coliseum Capital Management, LLC is the company's top fund holder with 7.11% of shares outstanding. It is followed by State of New Jersey Common Pension Fund D with 6.46% and Kanen Wealth Management LLC with 6.42%.

Celestica Inc

The third stock that qualifies is Celestica Inc (CLS, Financial), a Toronto, Canada-based provider of hardware platform and supply chain solutions for several industries in North America and internationally, including aerospace and defense, industrial and energy. The company also serves biotechnology, capital equipment, original equipment manufacturers (OEMs) and cloud-based providers.

The stock was trading at $9.82 per share at close on Friday, which is below the intrinsic value of $10.77 from the discounted cash flow model, yielding an 8.82% margin of safety.

The share price has risen 65.6% over the past year, determining a market capitalization of $1.23 billion and a 52-week range of $5.83 to $10.53.

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GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of hold and an average target price of $11.22 per share.

LETKO, BROSSEAU & ASSOCIATES INC dominates the group of top fund holders of the company, owning 11.23% of shares outstanding. Richard Pzena (Trades, Portfolio) is second in the group with 6.92% of shares outstanding, followed by Connor, Clark & Lunn Investment Management Ltd. with 3.68%.

Owens & Minor Inc

The fourth stock that makes the cut is Owens & Minor, Inc. (OMI, Financial), a Mechanicsville, Virginia-based healthcare solutions company with operating activities located in the United States and internationally.

The stock was trading at $35.88 per share at close on Friday, which is below the intrinsic value of $49.15 from the discounted cash flow model, yielding a 27% margin of safety.

The share price has risen 37.7% over the past year, determining a market capitalization of $2.71 billion and a 52-week range of $21.76 to $49.16.

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GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and 6 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of hold and an average target price of $47.40 per share.

BlackRock Inc. dominates the group of top fund holders of the company, owning 15.33% of shares outstanding. VANGUARD GROUP INC is second in the group with 10.60% of shares outstanding, followed by WELLINGTON MANAGEMENT GROUP LLP with 10.54%.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure