Jeff Auxier's Most Undervalued Stocks

Jeff Auxier (Trades, Portfolio) of Auxier Asset Management was introduced to the world of investment through mowing lawns. The CEO of Georgia Pacific, Robert Pamplin, taught Auxier how important it is to remain ethical and honest in this business, and when Auxier became an adult, he included those principles in his own firm.


Auxier Asset Management invests in companies with strong balance sheets, generate substantial free cash flow, sells a product that is easy to understand and has a edge that keeps them above competition. The company must also be honest and cater to the shareholders. And ideally, the company will be undervalued.

24.8% of Auxier's portfolio consists of stocks in the consumer defensive sector. The second largest sector in his portfolio is healthcare, which makes up 24.2% of his portfolio, and the third is financial services, which is 17.8% of his portfolio.

The most undervalued stock in his portfolio is Apple Inc (AAPL). Auxier owns 6,325 shares that have a total value of $787,000.

Apple designs, manufactures and markets mobile communication, portable digital music devices, personal computers, software, accessories, networking solutions, third-party digital conent and applications, as well as media devices. The company was established in 1977.

Apple is currently trading at $127.17 a share and has an intrinsic value at $331, which indicates the stock is currently undervalued by 62%. The company has a business predictability rating of 4.5 out of 5 stars.

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Revenue per share for the trailing twelve months as of March 2015 was $35.86 and its growth rate for the year was 28.60%. Over the past 10 years, Apple's average growth rate was 36.30% a year. The company has shown predictable revenue and earnings growth, which is a good sign for investors.

Apple's P/E ratio is currently 15.67, its P/B ratio is 5.66 and its P/S ratio is 3.53.

The second most undervalued stock in Auxier's portfolio is Coach Inc (COH). Auxier currently owns 26,970 shares of COH valued at $1.17 million.

Coah Inc provides women's and men's bags, small leather goods, travel accessories, scarves, jewelry, travel bags, as well as other lifestyle products. The company was incorporated in 2000.

COH is currently trading at $35.12 and has an intrinsic value of $80, which means it may be currently undervalued by 56%. The company has a business predictability rating of 3.5 stars out of 5.

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Coach's P/B ratio of 3.82 is currently close to its five-year low of 3.77, which is a good sign for investors. The P/E ratio is 20.84 and its P/S ratio is 2.24.

The third most undervalued stock in Auxier's portfolio is Lowe's Companies Inc (LOW). Auxier has 18,970 shares of the company in his portfolio that have a total value of $1.4 million.

Lowe's is a home improvement company that operates 1,832 stores around the U.S., Canada and Mexico. The company was incorporated in 1952 and has been public since 1961.

LOW is currently trading at $69.03 and its intrinsic value is $142. The stock may currently be undervalued by 51%. LOW has a business predictability rating of 2.5 out of 5 stars.

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Lowe's P/B ratio of 6.93 is currently close to its 10-year high of 7.52, which is a warning sign investors should look out for.

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This article first appeared on GuruFocus.