7 Undervalued Stocks That Are Set to Grow

Companies have wide margins of safety and positive performances in the last 12 months

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Apr 26, 2017
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According to the GuruFocus All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair values are far above the current prices. The following stocks are trading with wide margins of safety and have positive performances over the past 12 months.

Novo Nordisk A/S ADRĂ‚ (NVO) is trading around $37.08 per share. The Peter Lynch value gives the stock a fair price of $42.24 so the stock is undervalued with a margin of safety of 12%. The stock started its positive upward trend 12 weeks ago; it now registers a positive performance of 7.2%.

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Novo Nordisk A/S is a health care company that is engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The company has two business segments: diabetes & obesity care and biopharmaceuticals.

The stock is trading with a price-earnings (P/E) ratio of 17.28, which is higher than 75% of companies in the Global Biotechnology industry. The price is 35.45% below its 52-week high and 20.04% above its 52-week low. The price-book (P/B) ratio is 14.55.

Jim Simons (Trades, Portfolio) with 0.55% of outstanding shares is the largest investor among the gurus followed by Ken Fisher (Trades, Portfolio) with 0.41% and Tom Gayner (Trades, Portfolio) with 0.04%.

KB Home (KBH) is trading around $20.44 per share. The Peter Lynch value gives the stock a fair price of $44.25 so the stock is undervalued with a margin of safety of 54%. The stock started its positive upward trend 12 weeks ago and it now registers a positive performance of 21.2%.

KB Home is engaged in the construction and sales of homes. The company offers a variety of new homes designed for first-time, move-up and active adult homebuyers, including attached and detached single-family residential homes.

The stock is trading with a P/E ratio of 17.93 which is lower than 58% of companies in the Global Residential Construction industry. The price is 2.25% below its 52-week high and 65.11% above its 52-week low. The P/B ratio is 0.99.

The largest shareholder among the gurus is Donald Smith (Trades, Portfolio) with 7.94% followed by Fisher with 4.19%, Steven Cohen (Trades, Portfolio) with 0.47%, Simons with 0.37%, Joel Greenblatt (Trades, Portfolio) with 0.02% and Paul Tudor Jones (Trades, Portfolio) with 0.02%.

PolyOne Corp. (POL) is trading around $37.41 per share. The Peter Lynch value gives the stock a fair price of $45.08 so the stock is undervalued with a margin of safety of 17%. The stock started its positive upward trend 12 weeks ago; it now registers a positive performance of 13.3%.

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PolyOne is engaged in providing specialized polymer materials, services and solutions with operations in specialty polymer formulations, color and additive systems, plastic sheet and packaging solutions and polymer distribution.

The stock is trading with a P/E ratio of 19.18, which is higher than 57% of companies in the Global Specialty Chemicals industry. The price is 2.60% below its 52-week high and 30.03% above its 52-week low. The P/B ratio is 4.18.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 2.79% followed by Simons with 0.09%, George Soros (Trades, Portfolio) with 0.01% and Jones with 0.01%.

Taiwan Semiconductor Manufacturing Co. Ltd.Ă‚ (TSM) is trading around $33.07 per share. The Peter Lynch value gives the stock a fair price of $46.23 so the stock is undervalued with a margin of safety of 28%. The stock started its positive upward trend 12 weeks ago; it now registers a positive performance of 5.6%.

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Taiwan Semiconductor engages in the manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices. It also manufactures masks.

The stock is trading with a P/E ratio of 15.30, which is higher than 75% of companies in the Global Semiconductors industry. The price is 1.37% below its 52-week high and 45.36% above its 52-week low. The P/B ratio is 3.75.

Fisher with 0.54% of outstanding shares is the largest investor among the gurus followed by Jeremy Grantham (Trades, Portfolio) with 0.14%, Sarah Ketterer (Trades, Portfolio) with 0.14%, Howard Marks (Trades, Portfolio) with 0.07%, Pioneer Investments (Trades, Portfolio) with 0.06%, Ron Baron (Trades, Portfolio) with 0.04%, Frank Sands (Trades, Portfolio) with 0.03%, Simons with 0.03% and John Burbank (Trades, Portfolio) with 0.02%.

Applied Materials Inc. (AMAT) is trading around $40.47 per share. The Peter Lynch value gives the stock a fair price of $48.75 so the stock is undervalued with a margin of safety of 16%. The stock started its positive upward trend 12 weeks ago; it now registers a positive performance of 18.8%.

Applied Materials provides manufacturing equipment, services and software to the semiconductor, flat panel display, solar photovoltaic and related industries.

The stock is trading with a P/E ratio of 20.92, which is higher than 57% of companies in the Global Semiconductor Equipment & Materials industry. The price is 0.20% below its 52-week high and 106.61% above its 52-week low. The P/B ratio is 5.73.

The largest shareholder among the gurus is T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.64% followed by PRIMECAP Management (Trades, Portfolio) with 0.55%, Cohen with 0.29%, Simons with 0.25%, Greenblatt with 0.13%, Ken Heebner (Trades, Portfolio) with 0.13%, Chris Davis (Trades, Portfolio) with 0.07% and Ray Dalio (Trades, Portfolio) with 0.02%.

Silicon Motion Technology Corp. ADRĂ‚ (SIMO) is trading around $44.9 per share. The Peter Lynch value gives the stock a fair price of $50.37 so the stock is undervalued with a margin of safety of 11%. The stock started its positive upward trend 12 weeks ago; it now registers a positive performance of 10.1%.

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Silicon Motion Technology is a fabless semiconductor company that designs, develops and markets high-performance, low-power semiconductor solutions for the multimedia consumer electronics market.

The stock is trading with a P/E ratio of 14.45 which is higher than 75% of companies in the Global Semiconductors industry. The price is 20.18% below its 52-week high and 20.15% above its 52-week low. The P/B ratio is 3.59.

Chuck Royce (Trades, Portfolio) with 0.45% of outstanding shares is the largest investor among the gurus followed by Pioneer Investments with 0.43%, Simons with 0.32%, Grantham with 0.22% and Burbank with 0.09%.

Granite Real Estate Investment Trust (GRP.U) is trading around $35.85 per share. The Peter Lynch value gives the stock a fair price of $53.23 so the stock is undervalued with a margin of safety of 33%. The stock started its positive upward trend 12 weeks ago; it now registers a positive performance of 6.5%.

Granite is a real estate investment trust. It is engaged in the ownership and management of industrial, warehouse and logistics properties in North America and Europe.

The stock is trading with a P/E ratio of 7.67, which is higher than 85% of companies in the Global REIT - Industrial industry. The price is 2.85% below its 52-week high and 23.11% above its 52-week low. The P/B ratio is 1.15.

The largest shareholder among the gurus is Smith with 3.66% followed by HOTCHKIS & WILEY with 1.96% and Simons with 0.64%.

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

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