4 Modestly Undervalued Stalwarts as of December

GuruFocus.com

- By James Li

According to the Peter Lynch Stalwarts Screen, a Premium All-in-One Screener template, four stocks that have good growth potential and are modestly undervalued based on the GF Value measure are Intel Corp. (NASDAQ:INTC), Maximus Inc. (NYSE:MMS), SEI Investments Co. (NASDAQ:SEIC) and Usana Health Sciences Inc. (NYSE:USNA).


Lynch, the legendary manager of the Fidelity Magellan Fund during the 1980s, defined a stalwart as a well-established company that still offers long-term growth potential. The Screener lists certain criteria for stalwarts, including 10-year revenue and earnings growth rates between 8% and 20%, 10 years of profitability over the past decade and a 10-year median return on capital of at least 14%.

4 Modestly Undervalued Stalwarts as of December
4 Modestly Undervalued Stalwarts as of December

Intel

Shares of Intel traded around $49.40, showing that the stock is modestly undervalued with a price-to-GF Value ratio of 0.8.

4 Modestly Undervalued Stalwarts as of December
4 Modestly Undervalued Stalwarts as of December

GuruFocus ranks the Santa Clara, California-based semiconductor company's profitability 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a 4.5-star business predictability rank and an operating margin that has increased approximately 4.1% per year on average over the past five years and is outperforming over 95% of global competitors.

4 Modestly Undervalued Stalwarts as of December
4 Modestly Undervalued Stalwarts as of December

Gurus with holdings in Intel include PRIMECAP Management (Trades, Portfolio), Ken Fisher (Trades, Portfolio)'s Fisher Investments and Chris Davis (Trades, Portfolio)' Davis Selected Advisors.

4 Modestly Undervalued Stalwarts as of December
4 Modestly Undervalued Stalwarts as of December

Maximus

Shares of Maximus traded around $73.72, showing that the stock is modestly undervalued with a price-to-GF Value ratio of 0.77.

4 Modestly Undervalued Stalwarts as of December
4 Modestly Undervalued Stalwarts as of December

The Reston, Virginia-based company provides government health and human services programs in the U.S. and internationally. GuruFocus ranks the company's profitability 8 out of 10 on the back of profit margins outperforming over 70% of global competitors and returns outperforming over 80% of global business service companies.

4 Modestly Undervalued Stalwarts as of December
4 Modestly Undervalued Stalwarts as of December

SEI Investments

Shares of SEI Investments traded around $56.16, showing that the stock is modestly undervalued with a price-to-GF Value ratio of 0.88.

4 Modestly Undervalued Stalwarts as of December
4 Modestly Undervalued Stalwarts as of December

GuruFocus ranks the Pennsylvania-based asset management company's financial strength 9 out of 10 on several positive investing signs, which include a double-digit Altman Z-score, a triple-digit interest coverage ratio and debt ratios outperforming over 80% of global competitors.

4 Modestly Undervalued Stalwarts as of December
4 Modestly Undervalued Stalwarts as of December

Usana Health Sciences

Shares of Usana Health Sciences traded around $79.30, showing that the stock is modestly undervalued with a price-to-GF Value ratio of 0.86.

4 Modestly Undervalued Stalwarts as of December
4 Modestly Undervalued Stalwarts as of December

Usana develops and sells science-based nutritional and personal care products. GuruFocus ranks the Salt Lake City-based company's profitability 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8, a four-star business predictability rank and profit margins that are outperforming over 80% of global competitors.

4 Modestly Undervalued Stalwarts as of December
4 Modestly Undervalued Stalwarts as of December

Disclosure: Long Intel.

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This article first appeared on GuruFocus.