According to 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 at least five gurus are shareholders.
Wyndham Worldwide Corp. (WYN) is trading at about $77 per share. The Peter Lynch value gives the stock a fair price of $90.2 so the stock is undervalued with a margin of safety of 14%.
The stock is trading with a price-earnings (P/E) ratio of 14.81, higher than 68% of companies in the Global Lodging industry, and is 4.66% below its 52-week high and 27.58% above its 52-week low. The price-sales (P/S) ratio is 1.57, and the forward P/E is 12.30.
It is a hospitality company, offering individual consumers and business customers a suite of hospitality products and services. It operates three segments including lodging, vacation exchange and rentals and vacation ownership.
The stock is part of two gurus’ portfolios. First Eagle Investment (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.8% of outstanding shares followed by Joel Greenblatt (Trades, Portfolio) with 0.29%.
Fortune Brands Home & Security Inc. (FBHS) is trading at about $54.27 per share. The Peter Lynch value gives the stock a fair price of $61.50 so the stock is undervalued with a margin of safety of 7%.
The stock is trading with a P/E ratio of 21.97, lower than 60% of companies in the Global Home Furnishings & Fixtures industry, and is 15.82% below its 52-week high and 22.81% above its 52-week low. The P/S ratio is 1.76, and the forward P/E is 17.51.
It is a home and security products company. It has four segments: Kitchen & Bath Cabinetry, Plumbing & Accessories, Advanced Material Windows & Door Systems and Security & Storage.
The stock is part of two gurus’ portfolios. Mario Gabelli (Trades, Portfolio) is the main shareholder among the gurus with a stake of 0.94% of outstanding shares followed by Pioneer Investments (Trades, Portfolio) with 0.41%.
Huntington Ingalls Industries Inc. (HII) is trading at about $191 per share. The Peter Lynch value gives the stock a fair price of $225.50 so the stock is undervalued with a margin of safety of 15%.
The stock is trading with a P/E ratio of 21.24, higher than 56% of companies in the Global Aerospace & Defense industry, and is 2.89% below its 52-week high and 62.08% above its 52-week low. The P/S ratio is 1.29, and the forward P/E is 18.32.
The company is engaged in designing, building, overhauling and repairing ships for the U.S. Navy and the U.S. Coast Guard. It also provides refueling and complex overhaul services for nuclear-powered aircraft carriers.
The stock is part of two gurus’ portfolios. Jim Simons (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.46% of outstanding shares followed by Greenblatt with 0.24%.
Tesoro Corp. (TSO) is trading at about $80 per share. The Peter Lynch value gives the stock a fair price of $125.68; the stock is undervalued with a margin of safety of 37%.
The stock is trading with a P/E ratio of 13.27, lower than 51% of companies in the Global Oil & Gas Refining & Marketing industry, and is 17.82% below its 52-week high and 17.42% above its 52-week low. The P/S ratio is 0.40, and the forward P/E is 13.83.
The company is an independent petroleum refiner and marketer in the U.S. Its subsidiaries operate through three business segments, transport crude oil and manufacture, transport and sell transportation fuels.
The stock is part of two gurus’ portfolios. Jeremy Grantham (Trades, Portfolio) is the main shareholder among the gurus with a stake of 0.89% of outstanding shares followed by Steven Cohen (Trades, Portfolio) with 0.11%.
Whirlpool Corp. (WHR) is trading at about $184 per share. The Peter Lynch value gives the stock a fair price of $254.4; the stock is undervalued with a margin of safety of 28%.
The stock is trading with a P/E ratio of 16.12, higher than 54% of companies in the Global Home Furnishings & Fixtures industry, and is 4.81% below its 52-week high and 49.49% above its 52-week low. The P/S ratio is 0.70, and the forward P/E is 11.59.
The company is a manufacturer and marketer of home appliances. It produces and sells washers, dryers, refrigerators, air conditioners, dishwashers, freezers, microwave ovens, ranges, air purifiers and other typical household appliances.
The stock is part of three gurus’ portfolios. Barrow, Hanley, Mewhinney & Strauss is the main shareholder among the gurus with a stake of 2.78% of outstanding shares followed by Diamond Hill Capital (Trades, Portfolio) with 2.41% and Bill Nygren (Trades, Portfolio) with 2.3%.
Mohawk Industries Inc. (MHK) is trading at about $202 per share. The Peter Lynch value gives the stock a fair price of $239.23; the stock is undervalued with a margin of safety of 15%.
The stock is trading with a P/E ratio of 16.98, higher than 54% of companies in the Global Home Furnishings & Fixtures industry, and is 6.54% below its 52-week high and 36.25% above its 52-week low. The P/S ratio is 1.72, and the forward P/E is 15.22.
It is a flooring manufacturer that creates products to enhance residential and commercial spaces around the world. The company's segments are the Carpet segment, the Ceramic segment and the Laminate and Wood segment.
The stock is part of five gurus’ portfolios. Ruane Cunniff (Trades, Portfolio) is the main shareholder among the gurus with a stake of 3.32% of outstanding shares followed by Steve Mandel (Trades, Portfolio) with 1.59%, Daniel Loeb (Trades, Portfolio) with 1.21%, Eric Mindich (Trades, Portfolio) with 1.18% and David Tepper (Trades, Portfolio) with 0.78%.
Canadian Pacific Railway Ltd. (CP) is trading at about $148 per share. The Peter Lynch value gives the stock a fair price of $169.73 so the stock is undervalued with a margin of safety of 12%.
The stock is trading with a P/E ratio of 19.35, lower than 57% of companies in the Global Railroads industry, and is 5.63% below its 52-week high and 52.93% above its 52-week low. The P/S ratio is 4.78, and the forward P/E is 16.18.
The company is engaged in rail transportation. It provides freight transportation services, logistics solutions and supply chain expertise in Canada and the U.S.
The stock is part of three gurus’ portfolios. Andreas Halvorsen (Trades, Portfolio) is the main shareholder among the gurus with a stake of 2.46% of outstanding shares followed by John Griffin (Trades, Portfolio) with 1.16% and First Eagle Investment with 0.59%.
United Continental Holdings Inc. (UAL) is trading at about $74 per share. The Peter Lynch value gives the stock a fair price of $199.75; the stock is undervalued with a margin of safety of 63%.
The stock is trading with a P/E ratio of 9.30, higher than 52% of companies in the Global Airlines industry, and is 3.23% below its 52-week high and 98.66% above its 52-week low. The P/S ratio is 0.70, and the forward P/E is 11.27.
United Continental Holdings transports people and cargo through its mainline operations, which use jet aircraft with at least 118 seats, and its regional operations.
The company is held by three gurus, PRIMECAP Management (Trades, Portfolio) is the largest shareholder among the gurus with a stake of 6.25% of outstanding shares followed by Warren Buffett (Trades, Portfolio) with 1.43% and Leon Cooperman (Trades, Portfolio) with 0.65%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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