When searching for value opportunities, investors may want to consider the following stocks, since their prices are trading at a discount to the intrinsic value calculated by GuruFocus' earnings-based discounted cash flow (DCF) calculator.
Furthermore, sell-side analysts on Wall Street have issued positive recommendation ratings for these stocks, indicating that they expect share prices to rise.
PennyMac Financial Services Inc
The first stock that matches the above criteria is PennyMac Financial Services Inc (PFSI, Financial), a Westlake Village, California-based provider of mortgage banking and investment management services.
The stock traded at $58.10 per share on Monday, which is lower than the intrinsic value of $949.40 from the DCF model, for a margin of safety of 93.88%.
The share price has risen by 32.36% over the past year for a market capitalization of $3.88 billion and a 52-week range of $42.60 to $70.99.
GuruFocus has assigned a score of 2 out of 10 to the company's financial strength and 9 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $77.25 per share.
Price T Rowe Associates Inc/MD/ is the largest top fund holder of the company with 7.34% of shares outstanding. The investment firm is followed by BlackRock Inc. with 5.47% of shares outstanding and Vanguard Group Inc with 5.43%.
PROG Holdings Inc
The second stock that meets the criteria is PROG Holdings Inc (PRG, Financial), a Draper, Utah-based provider of lease-purchase solutions for underserved and credit-challenged customers through 25,000 third-party point-of-sale partner locations and websites of e-commerce across the U.S.
The stock traded at $42.40 per share at close on Monday, which stands lower than the intrinsic value of $64.79 from the DCF model, yielding a 34.54% margin of safety.
The share price has risen by 17.44% over the past year, determining a market capitalization of $2.87 billion and a 52-week range of $35.68 to $60.50.
GuruFocus has assigned a score of 6 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 buy and an average target price of $69.86 per share.
BlackRock is the company's top fund holder with 12.71% of shares outstanding. The asset management company is followed by Vanguard Group Inc with 10.08% and Price T Rowe Associates Inc/MD/ with 8.47%.
Tronox Holdings PLC
The third stock that matches the criteria is Tronox Holdings PLC (TROX, Financial), a Stamford, Connecticut-based global producer of chemicals that are employed in the manufacture of coatings, paints, plastics and paper.
The stock traded at $17.40 per share at close on Monday, which is below the intrinsic value of $97.12 from the discounted cash flow model, yielding an 82.10% margin of safety.
The share price has risen by 147.72% over the past year, determining a market capitalization of $2.67 billion and a 52-week range of $7.01 to $24.81.
GuruFocus has assigned a score of 3 out of 10 to the company's financial strength and 4 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $27.13 per share.
FMR LLC dominates the group of top fund holders of the company, owning 8.75% of shares outstanding. Vanguard Group is second in the group with 6.74% of shares outstanding, followed by BlackRock with 5.11%.
Mr. Cooper Group Inc
The fourth stock that matches the criteria is Mr. Cooper Group Inc (COOP, Financial), a Coppell, Texas-based financial services company providing various services for single-family residences in the U.S.
The stock traded at $32.70 per share at close on Monday, which stands lower than the intrinsic value of $160.44 from the DCF model, yielding a 79.62% margin of safety.
The share price has risen by 151.27% over the past year, determining a market capitalization of $2.82 billion and a 52-week range of $12.59 to $37.90.
GuruFocus has assigned a score of 3 out of 10 to the company's financial strength and 4 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $40.86 per share.
BlackRock is the company's top fund holder with 13.16% of shares outstanding. The asset management company is followed by Kohlberg Kravis Roberts & Co. L.P. with 12.85% and Vanguard Group with 5.38%.
Disclosure: I have no positions in any securities mentioned.
