A trio of stocks are trading nearby

When looking for bargain opportunities, value investors may want to consider the following stocks, as their stock prices are trading near or below the intrinsic value estimated by the GF Value line.

GF Value is a unique intrinsic value calculation from GuruFocus that consists of three components:

  • Historical multiples of the stock, such as price-to-earnings ratio, price-to-sales ratio, price-to-book ratio, and price-to-free cash flow ratio.
  • A GuruFocus adjustment factor based on past performance and company business growth.
  • Analyst estimates of the company’s future performance.

Hunter

Huntersman Corp. (HUN, Financial), a manufacturer and marketer of differentiated organic chemicals headquartered in The Woodlands, Texas.

Shares of Huntsman closed at $27.28 each on Friday, while its GF value was $38.56, which translates to a GF price-to-value ratio of 0.71 and a slightly undervalued rating. The stock was down slightly year-over-year, just 0.55%, determining a market cap of $5.49 billion and a 52-week range of $25.02 to $41.65.

The price/earnings ratio is 4.79 (compared to the industry median of 17.31) and the price/earnings ratio is 1.36 (compared to the sector median of 1.92). Additionally, the price-to-sales ratio is 0.65 (vs. the industry median of 1.45) and the price-to-free cash flow ratio is 6.16 (vs. the industry median of 22 ,15).

GuruFocus gave the title a value ranking of 10 out of 10 and a profitability ranking of 8 out of 10.

When it comes to future company performance, sell-side analysts on Wall Street are forecasting earnings growth of 11.26% per year over the next five years. This year, they are expected to increase by 23.20% compared to 2021.

Lennar

The second equity investor investors might consider is Lennar Corp. (LEN, Financial), a Miami-based home builder. The Company’s residential construction businesses include the construction and sale of single-family and detached homes, as well as the purchase, development and sale of residential land and multi-family dwellings. It also offers financing, insurance and investment activities. It is aimed primarily at first-time buyers, mature and working adult buyers and luxury home buyers.

Lennar shares closed at $79.82 each on Friday, while its GF value was $108.97, which translates to a GF price-to-value ratio of 0.73 and a slightly undervalued rating. The stock price is down 19.71% over the past year to a market cap of $22.66 billion and a 52-week range of $62.54 to $117.54.

The price/earnings ratio is 5.52 (vs. the industry median of 8.01) and the price/earnings ratio is 1.09 (vs. the industry median of 0.96 ). Price to sales ratio is 0.8 (vs. industry median of 0.77) and price to free cash flow ratio is 13.45 (vs. industry median of 11.27) .

GuruFocus gave the title a value ranking of 10 out of 10 and a profitability ranking of 9 out of 10.

When it comes to future company performance, sell-side analysts on Wall Street are predicting earnings growth of 23.70% per year over the next five years. This year, they are expected to increase by 15.40% compared to 2021.

The Hartford

The third equity investor that investors might consider is The Hartford Financial Services Group Inc. (RAISED, Financial), an insurer and financial services provider based in Hartford, Connecticut, in the United States and internationally.

Hartford shares closed at $67.02 each on Friday, while its GF value was $69.99, which translates to a GF price-to-value ratio of 0.96 and a fair value rating. The stock price has fallen 4.69% over the past year to a market cap of $21.66 billion and a 52-week range of $61.59 to $78.17.

Price to earnings ratio is 11.12 (vs. industry median of 11.81), price to pounds ratio is 1.58 (vs. industry median of 1.16), price to /sales is 1.08 (vs. the industry median of 1.05) and the price to free cash flow ratio is 6.19 (vs. the industry median of 6.71).

GuruFocus gave the title a value ranking of 6 out of 10 and a profitability ranking of 6 out of 10.

Looking at future corporate performance, sell-side analysts on Wall Street are forecasting earnings growth of 13.73% per year over the next five years. This year, an increase of 19.20% is expected.

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