3 Stocks Trading With a Margin of Safety
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When screening the market bargains, investors may want to consider the following stocks, since their share prices are trading below the intrinsic value calculated by GuruFocus' free cash flow-based discounted cash flow calculator.
Additionally, Wall Street recommends positive ratings for these companies, indicating that their share prices are foreseen to trade higher over the upcoming months.
Goldman Sachs Group Inc
The first stock investors may want to consider is Goldman Sachs Group Inc (NYSE:GS), a New York-based financial services giant focusing on corporations, financial institutions, governments and individuals worldwide.
The stock traded at $378.05 per share at close on Friday, which is below the intrinsic value of $1,195.73 calculated from the DCF model, yielding a margin of safety of 68.38%.
The share price jumped by nearly 83.24% over the past year, determining a market capitalization of $128.45 billion and a 52-week range of $185.52 to $393.26.
GuruFocus has assigned a score of 3 out of 10 to the company's financial strength and 6 out of 10 to its profitability rating.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $394.18 per share.
Interactive Brokers Group Inc
The second stock investors may want to consider is Interactive Brokers Group Inc (NASDAQ:IBKR), a Greenwich, Connecticut-based automated electronic broker for global capital markets operators.
The stock traded at $65.47 per share at close on Friday, which is lower than the DCF valuation of $661, yielding a 90.10% margin of safety.
The share price has risen by 54.23% over the past year, determining a market capitalization of $27.29 billion and a 52-week range of $39.89 to $80.57.
GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 5 out of 10 to its profitability rating.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $87.83 per share.
Dick's Sporting Goods Inc
The third stock investors may want to consider is Dick's Sporting Goods Inc (NYSE:DKS), a Coraopolis, Pennsylvania-based operator of nearly 730 sporting goods retail stores in the eastern United States.
The stock traded at $100.16 per share at close on Friday, below the intrinsic value calculated from the DCF model of $685.64. The margin of safety stands at 85.39%.
The share price has jumped 156.23% over the past year for a market capitalization of $8.94 billion and a 52-week range of $37.68 to $101.30.
GuruFocus has assigned a score of 6 out of 10 to the company's financial strength and 8 out of 10 to its profitability rating.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $111.11 per share.
Disclosure: I have no positions in any securities mentioned.
This article first appeared on GuruFocus.
