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Value Investor Daily #54
Screen of the Week: The Undervalued Stocks in Bill Nygren's Portfolio
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Here’s a fun screen to start off your week.
Bill Nygren has consistently excelled as a value fund manager at Oakmark, outperforming the market over the last 30 years with an average annual return of 10.34% compared to 8.05% for the S&P 500.
He’s also beaten the market in the last 25, 20, 15, 10, 5, 3, and 1-year time frames—a remarkable feat.
He currently holds 55 stocks. We ran a screen to see which stocks in his portfolio are undervalued.
According to Gurufocus, 11 names in his portfolio are undervalued by at least 20%.
IMPORTANT: take this list with a grain of salt. The DCF estimates below are computer-generated with default assumptions.
They assume the company's 10-year EPS growth rate will continue for the next decade (highly unlikely for most companies). The calculator caps the assumed growth rate at 20%.
You can play with the calculator and tweak it to your own assumptions.
However, since these results were obtained by applying the same assumptions across his entire portfolio, we believe this list of ideas is still useful, especially since it comes from one of the best fund managers.
Symbol | Company | Price | DCF (Earnings Based) | Discount % |
|---|---|---|---|---|
CNC | Centene Corp | $64.22 | $222.81 | 71% |
FCNCA | First Citizens BancShares Inc | $1881.83 | $6132.52 | 69% |
CHTR | Charter Communications Inc | $336.00 | $976.22 | 66% |
GM | General Motors Co | $52.07 | $138.32 | 62% |
BAC | Bank of America Corp | $41.89 | $80.22 | 48% |
CMCSA | Comcast Corp | $41.66 | $72.26 | 42% |
CE | Celanese Corp | $128.87 | $205.58 | 37% |
KR | The Kroger Co | $57.37 | $85.04 | 33% |
GPN | Global Payments Inc | $99.13 | $141.43 | 30% |
GOOGL | Alphabet Inc | $165.27 | $220.03 | 25% |
COF | Capital One Financial Corp | $161.27 | $202.96 | 21% |
What do you think of this screen? Is it useful to you? Do you want us to further explore any specific names in it? Do you want us to create a similar list for other top investors?
Hit reply and let us know.
Thank you for reading today!