4 Modestly Undervalued Stalwarts as of December
- 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%.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Disclosure: Long Intel.
Read more here:
Andreas Halvorsen's Top 5 Health Care Positions as of the 3rd Quarter
5 High-Quality Stocks in the Mediterranean
Top 6 Stocks in GuruFocus Users' Christmas Wish Lists
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
This article first appeared on GuruFocus.