5 Fairly Valued Stocks That Outperformed the S&P 500 in the 3rd Quarter

According to the All-in-One Screener, a Premium feature of GuruFocus, five stocks that have outperformed the Standard & Poor’s 500 Index by more than 10% during the third quarter yet are still fairly valued based on GF Value are Cabot Oil & Gas Corp. (

COG, Financial), Advanced Micro Devices Inc. (AMD, Financial), CF Industries Holdings Inc. (CF, Financial), Lincoln National Corp. (LNC, Financial) and PerkinElmer Inc. (PKI, Financial).

On Wednesday, the Dow Jones Industrial Average closed at 34,390.72, up 90 points from Tuesday’s close of 34,299.99 despite hitting an intraday high of 34,580.42. Likewise, the S&P 500 closed at 4,359.46 points, up just 6.83 points from the previous close of 4,352.63.

Stocks attempted to rebound following Tuesday’s market decline, when the 10-year yield hit a three-month high of 1.567%. Despite this, markets sank from intraday highs when the yield climbed above 1.54%.

Despite the muted increase in the S&P 500, investors can still find opportunities in the S&P 500 stocks that have outperformed the benchmark by at least 10% over the past three months yet are still fairly valued based on the GF Value Line. GuruFocus’ exclusive valuation method extends Peter Lynch’s “earnings line” concept by considering a stock’s historical growth multiples and adjusting for past performance and future growth estimates.

Cabot Oil & Gas

Shares of Cabot Oil & Gas (

COG, Financial) traded around $22.17, showing that the stock is fairly valued based on Wednesday’s price-to-GF Value ratio of 1.04. The stock has outperformed the S&P 500 by approximately 32% over the past three months.

GuruFocus ranks the Houston-based energy exploration and production company’s profitability 6 out of 10 on the back of three-year revenue growth rates outperforming just over 62% of global competitors despite profit margins and returns topping more than 77% of global energy companies.

Gurus with holdings in Cabot Oil & Gas include

PRIMECAP Management (Trades, Portfolio),
Jim Simons (Trades, Portfolio)’ Renaissance Technologies and Pioneer Investments.

Advanced Micro Devices

Shares of Advanced Micro Devices (

AMD, Financial) traded around $101.17, showing that the stock is fairly valued based on Wednesday’s price-to-GF Value ratio of 1.06. The stock has outperformed the S&P 500 by approximately 14% over the past three months.

GuruFocus ranks the Santa Clara, California-based semiconductor company’s financial strength 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a double-digit Altman Z-score and interest coverage and debt ratios that outperform more than 70% of global competitors.

Ken Fisher (Trades, Portfolio) and Simons’ Renaissance Technologies have holdings in Advanced Micro Devices.

CF Industries

Shares of CF Industries (

CF, Financial) traded around $56.52, showing that the stock is fairly valued based on Wednesday’s price-to-GF Value ratio of 1.07. The stock has outperformed the S&P 500 by approximately 14% over the past three months.

GuruFocus ranks the Deerfield, Illinois-based nitrogen fertilizer company’s profitability 7 out of 10 on the back of a high Piotroski F-score of 7 and profit margins that outperform more than 68% of global competitors.

Lincoln National

Shares of Lincoln National (

LNC, Financial) traded around $71, showing the stock is fairly valued based on Wednesday’s price-to-GF Value ratio of 1.03. The stock has outperformed the S&P 500 by approximately 11% over the past three months.

GuruFocus ranks the Radnor, Pennsylvania-based insurance company’s financial strength 4 out of 10 on the back of interest coverage and debt ratios underperforming more than 65% of global competitors despite the company having a solid Piotroski F-score of 6.

PerkinElmer

Shares of PerkinElmer (

PKI, Financial) traded around $176.12, showing that the stock is fairly valued based on Wednesday’s price-to-GF-Value ratio of 1.10.

GuruFocus ranks the Waltham, Massachusetts-based medical research company’s profitability 8 out of 10 on several positive investing signs, which include a three-star business predictability rank, a high Piotroski F-score of 7 and an operating margin that has increased approximately 10% per year on average over the past five years and is outperforming more than 90% of global competitors.