4 shares traded at a reduced price

If you want to increase your chances of finding good deals, one way to do this is to look for stocks that are trading at a discount to their estimate of intrinsic value as calculated from the cash flow valuation model. available (FCF) projected.

Unlike discounted cash flow or discounted earnings valuation models, the Projected FCF model allows investors to estimate the value of companies whose income and profit history is not regular and may also incorporate losses. in certain quarters. The projected FCF uses normalized free cash flow and book value.

The following four values ​​appear to be underestimated by the market according to the projected FCF model. They also have positive recommendation scores among Wall Street selling analysts.

Conn’s Inc

The first company that holds the criteria is Conn’s Inc (CONNECTICUT, Financial), a Texas-based operator of 154 specialty retail stores where consumers can purchase durable consumer goods.

The stock was trading at around $ 23.37 per share at Tuesday’s close, which is a reduction from the projected free cash flow of $ 48.06 per share. The stock price has risen 125% over the past year to a market cap of $ 700.52 million and a 52-week range of $ 9.20 to $ 31.48.

GuruFocus assigned a score of 4 out of 10 for the company’s financial strength rating and 6 out of 10 for its profitability rating.

The stock has a median conservation recommendation rating with an average target price of $ 33 per share on Wall Street.

Titan Machines Inc

The second stock that qualifies is Titan Machinery Inc (TITN, Financial), an owner and operator of farm and construction equipment store chains based in West Fargo, North Dakota.

The stock traded at around $ 24.82 per share at Tuesday’s close, which is a reduction from the projected free cash flow of $ 53.87 per share. The price has increased 100.63% over the past year for a market cap of $ 571.10 million and a 52-week range of $ 12.50 to $ 35.24.

1440705398561574912.png

GuruFocus assigned a score of 6 out of 10 for the company’s financial strength rating and 5 out of 10 for its profitability rating.

On Wall Street, the stock has a median buy recommendation rating with an average target price of $ 37.33 per share.

BlueLinx Holdings Inc

The third stock that meets the requirements is BlueLinx Holdings Inc (BXC, Financial), a distributor of residential and commercial construction products based in Marietta, Georgia, United States.

The stock was trading at around $ 49.14 per share at Tuesday’s close, which is a reduction from the projected free cash flow of $ 62.07. The stock price has risen 167.51% in the past year for a market cap of $ 490.80 million and a 52-week range of $ 17.93 to $ 70.38.

1440705401841520640.png

GuruFocus assigned a score of 5 out of 10 for the company’s financial strength rating and 4 out of 10 for its profitability rating.

On Wall Street, the stock has a median overweight recommendation rating and an average price target of $ 81 per share.

Farmers National Banc Corp

The fourth stock that holds the criteria is Farmers National Banc Corp (FMNB, Financial), a regional bank based in Canfield, Ohio, that provides banking and various financial services.

The stock was trading at around $ 14.90 per share at Tuesday’s close, which is a reduction from expected free cash flow of $ 25.29. The stock price has risen nearly 50% over the past year to a market cap of $ 425.42 million and a 52-week range of $ 10.05 to $ 18.26.

1440705405310210048.png

GuruFocus assigned a score of 3 out of 10 for the company’s financial strength rating and 5 out of 10 for its profitability rating.

On Wall Street, the stock has a median overweight recommendation rating and an average price target of $ 19.13 per share.

Disclosure: I have no position on the titles mentioned in this article.

About Myra R.

Check Also

We think DLF (NSE:DLF) can stay on top of its debt

Berkshire Hathaway’s Charlie Munger-backed outside fund manager Li Lu is quick to say, “The biggest …

Leave a Reply

Your email address will not be published.