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7 Companies With Wide Margins of Safety and Rising Share Prices

- By Tiziano Frateschi

According to the GuruFocus All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair values are far above the current price. The following stocks are trading with wide margins of safety and have positive performances over the past 12 months.


DRDGold Ltd. ADR (DRD) is trading around $6.09 per share. The Peter Lynch value gives the stock a fair price of $14.99 so the stock is undervalued with a margin of safety of 57%. Twelve weeks ago the stock started its positive upward trend; it now registers a positive performance of 23.8%.

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DRDGold is a South African gold mining company engaged in surface gold tailings retreatment including exploration, extraction, processing and smelting.

The stock is trading with a price-earnings (P/E) ratio of 18.01, which is higher than 54% of the companies in the Global Gold industry. The price is currently 33.08% below its 52-week high and 97.73% above its 52-week low. The price-book (P/B) ratio is 2.20.

The company's largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 3.58% of outstanding shares followed by RS Investment Management (Trades, Portfolio) with 0.07%.

Heritage Commerce Corp. (HTBK) is trading around $13.83 per share. The Peter Lynch value gives the stock a fair price of $16.14 so the stock is undervalued with a margin of safety of 19%. Twelve weeks ago the stock started its positive upward trend, and it now registers a positive performance of 27.2%.

Heritage Commerce operates as a bank holding company. The company through its subsidiary offers commercial banking services to small and medium-sized businesses and their owners, managers and employees.

The stock is trading with a P/E ratio of 19.20, which is higher than 71% of the companies in the Global Banks - Regional - US industry. The price is 5.92% below its 52-week high and 56.45% above its 52-week low. The price-sales (P/S) ratio is 4.58.

Simons is the largest investor among the gurus with 0.78% of outstanding shares.

United Insurance Holdings Corp. (UIHC) is trading around $13.29 per share. The Peter Lynch value gives the stock a fair price of $16.91 so the stock is undervalued with a margin of safety of 19%. Twelve weeks ago the stock started its positive upward trend and it now registers a positive performance of 17.1%.

United Insurance Holdings along with its subsidiaries is engaged in the property and casualty insurance business in Florida, South Carolina and Massachusetts among others. The company also offers reinsurance services.

The stock is trading with a P/E ratio of 9.52, which is higher than 81% of the companies in the Global Insurance - Property & Casualty industry. The price is 33.68% below its 52-week high and 39.60% above its 52-week low. The P/S ratio is 0.65.

The company's largest shareholder among the gurus is Simons with 0.43% of outstanding shares followed by Chuck Royce (Trades, Portfolio) with 0.06%.

ESSA Bancorp Inc. (ESSA) is trading around $15.54 per share. The Peter Lynch value gives the stock a fair price of $18 so the stock is undervalued with a margin of safety of 17%. Twelve weeks ago the stock started its positive upward trend, and it now registers a positive performance of 17.1%.

ESSA Bancorp is a bank holding company. The company through its subsidiary ESSA Bank & Trust provides financial services to individuals, families and businesses. ESSA Bank & Trust is a community-oriented savings association

The stock is trading with a P/E ratio of 21.59, which is lower than 78% of the companies in the Global Savings & Cooperative Banks industry. The price is currently 22.46% above its 52-week low and 7.72% below its 52-week low. The P/S ratio is 2.90.

Simons is the largest investor among the gurus with 2.98% of outstanding shares.

Bank of the James Financial Group Inc. (BOTJ) is trading around $16.4 per share. The Peter Lynch value gives the stock a fair price of $18.75 so the stock is undervalued with a margin of safety of 11%. Twelve weeks ago the stock started its positive upward trend, and it now registers a positive performance of 31.6%.

Bank of the James Financial Group is a bank holding company that offers commercial banking services including personal and business banking, loans and investments.

The stock is trading with a P/E ratio of 21.87, which is lower than 75% of companies in the Global Banks - Regional - US industry. The price is 11.35% below its 52-week high and 41.99% above its 52-week low. The P/S ratio is 3.00.

Steelcase Inc. (SCS) is trading around $16.15 per share. The Peter Lynch value gives the stock a fair price of $20.22 so the stock is undervalued with a margin of safety of 27%. Twelve weeks ago the stock started its positive upward trend; it now registers a positive performance of 19.2%.

Steelcase is engaged in furnishing the business, education and health care environments. Its brands include Steelcase, Coalesse, Details, Designtex, PolyVision and Turnstone.

The stock is trading with a P/E ratio of 11.28, which is higher than 81% of the companies in the Global Business Equipment industry. The price is 10.97% below its 52-week high and 38.39% above its 52-week low. The P/S ratio is 0.65.

Royce, with 1.32% of outstanding shares, is the largest investor among the gurus followed by Paul Tudor Jones (Trades, Portfolio) with 0.05% and Scott Black (Trades, Portfolio) with 0.04%.

Charter Financial Corp. (CHFN) is trading around $17.29 per share. The Peter Lynch value gives the stock a fair price of $20.5 so the stock is undervalued with a margin of safety of 15%. Twelve weeks ago the stock started its positive upward trend; it now registers a positive performance of 32.9%.

Charter Financial is a savings and loan holding company. The company is engaged in attracting retail deposits from the general public and investing those deposits, together with funds generated from operations.

The stock is trading with a P/E ratio of 21.11, which is lower than 76% of companies in the Global Banks - Regional - US industry. The price is 1.20% below its 52-week high and 40% above its 52-week low. The P/S ratio is 4.05.

The company's largest shareholder among the gurus is Private Capital (Trades, Portfolio) with 7.01% of outstanding shares followed by Simons with 6.06% and Charles Brandes (Trades, Portfolio) with 0.55%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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This article first appeared on GuruFocus.