When seeking bargains, investors may want to have a look at the following stocks, since their share prices are trading below the intrinsic value calculated by GuruFocus' free cash flow-based discounted cash flow calculator.
These stocks also have optimistic recommendation ratings from sell-side analysts on Wall Street.
Iconix Brand Group Inc
The first stock investors may want to have a look at is Iconix Brand Group Inc (ICON, Financial), a New York-based holder of licenses on a portfolio of consumer brands across fashion apparel, footwear, accessories, sportswear, home furnishings and decor and beauty and fragrances.
The stock closed at $1.88 per share on Thursday, which is below the intrinsic value of $39.01 calculated from the DCF model, yielding a margin of safety of 95.6%.
The share price rose by 175% over the past year, determining a market capitalization of $25.27 million and a 52-week range of $0.57 to $4.20.
GuruFocus has assigned a score of 2 out of 10 to the company's financial strength and 5 out of 10 to its profitability rating.
On Wall Street, the stock has one recommendation rating of buy and a target price of $4 per share.
Limbach Holdings Inc
The second stock investors may want to have a look at is Limbach Holdings Inc (LMB, Financial), a Pittsburgh, Pennsylvania-based engineering and construction company serving several industries in the U.S.
The stock closed at $10.56 per share on Thursday, which is lower than the DCF valuation of $70.65, yielding an 85.58% margin of safety.
The share price has risen by nearly 218.40% over the past year, determining a market capitalization of $105.10 million and a 52-week range of $2.53 to $16.09.
GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and 3 out of 10 to its profitability rating.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $17 per share.
Zovio Inc
The third stock investors may want to consider is Zovio Inc (ZVO, Financial), a Chandler, Arizona-based provider of education technology services.
The stock closed at $3.65 per share on Thursday, below the intrinsic value calculated from the DCF model of $9.64. The margin of safety stands at 62.14%.
The share price has increased by 118.56% over the past year, determining a market capitalization of $119.54 and a 52-week range of $1.31 to $7.34.
GuruFocus has assigned a score of 6 out of 10 to the company's financial strength and 7 out of 10 to its profitability rating.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $8.75 per share.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- 3 Stock Picks for a 'Buy and Hold' Approach
- 3 Capital-Intensive Stocks to Consider
- 3 Stocks Trading Below the Peter Lynch Earnings Line
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