As of Monday, the GuruFocus All-in-One Screener, a Premium feature, found that the following stocks have low price-earnings ratios and have been bought by gurus. While some of them are great value investments, others may need to be researched more carefully, according to the discounted cash flow calculator.
Bio-Rad Laboratories
With a market cap of $11.08 billion, Bio-Rad Laboratories Inc. (BIO) has a price-earnings ratio of 6.43. According to the DCF calculator, the stock has a fair value of $820 while trading at $374. The stock has gained 21% over the last 12 months and is now 9.3% below the 52-week high and 39.26% above the 52-week low.
The company has a GuruFocus profitability rating of 7 out of 10. The return on equity of 7.72% and return on assets of 5.54% are outperforming 97% of companies in the medical devices and instruments industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 1.71 is above the industry median of 1.4.
The company’s largest guru shareholder is John Rogers (Trades, Portfolio) with 0.76% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.75% and NWQ Managers (Trades, Portfolio) with 0.43%.
Ligand Pharmaceuticals
With a $1.7 billion market cap, Ligand Pharmaceuticals Inc. (LGND) is trading with a price-earnings ratio of 3.67. The share price has declined 3% over the past 12 months and is now 17.59% below the 52-week high and 27.35% above the 52-week low.
GuruFocus gave the biopharmaceutical and biotechnology company a profitability rating of 8 out of 10. The return on equity of 73.17% and return on assets of 39.36% are outperforming 98% of companies in the biotechnology industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 1.65 is far below the industry median of 8.38.
Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company’s largest guru shareholder with 5.82% of outstanding shares, followed by Fisher with 0.50% and Lee Ainslie (Trades, Portfolio)’s Maverick Capital with 0.09%.
Alexion Pharmaceuticals
With a market cap of $20.3 billion, Alexion Pharmaceuticals Inc. (ALXN) is trading with a price-earnings ratio of 8.57 and a price-book ratio of 1.81. According to the DCF calculator, the stock has a fair value of $155 while trading at about $91.98. Shares have tumbled 30% over the last 12 months and are now trading 35.16% below the 52-week high and 2.99% above the 52-week low.
The developer of drugs for patients in critical medical conditions has a Gurufocus profitability rank of 9 out of 10. The company's return on equity of 23.72% and return on assets of 16.06% are outperforming 98% of companies in the biotechnology industry. The cash-debt ratio of 1.03 is below the industry median of 8.38.
The company’s largest guru shareholder is Simons’ firm with 1.69% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.34% and David Carlson (Trades, Portfolio) with 0.24%.
Innoviva
Innoviva Inc. (INVA) has a market cap of $1.3 billion and is trading with a price-earnings ratio of 9.29 and a price-book ratio of 4.29. According to the DCF calculator, the stock has a fair value of $15.30 while trading at about $13.30. Shares have declined 6% over the last 12 months.
GuruFocus gives the financial services company a profitability rating of 6 out of 10. The return on equity of 68.44% and return on assets of 24.72% are outperforming 98% of companies in the biotechnology industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.93 is below the industry median of 8.38.
With 7.79% of outstanding shares, Simons’ firm is the company’s largest guru shareholder, followed by First Eagle Investment (Trades, Portfolio) with 1.64%.
Arena Pharmaceuticals
Arena Pharmaceuticals Inc. (ARNA) has a market cap of $2.3 billion. Its shares are trading with a price-earnings ratio of 6.02 and a price-book ratio of 2.21. According to the DCF calculator, the stock has a fair value of $81.76 while trading at $46. Shares prices had no net change over the past 12 months and are currently trading 28.61% below the 52-week high and 11.40% above the 52-week low.
The company, which is focused on receptors of G-protein-coupled, has a GuruFocus profitability rating of 4 out of 10. The return on equity of 37.73% and return on assets of 34.77% are outperforming 98% of companies in the biotechnology industry. Its financial strength is rated 9 out of 10. The company has no debt.
The company’s largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 2.58% of outstanding shares, followed by Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.65% and John Hussman (Trades, Portfolio) with 0.09%.
Supernus Pharmaceuticals
Supernus Pharmaceuticals Inc. (SUPN) has a market cap of $913 million. Its shares are trading with a price-earnings ratio of 8.25 and a price-book ratio of 1.58. According to the DCF calculator, the stock has a fair value of $22.58 while trading at $17.30. Shares have tanked 55% over a 12-month period and are currently trading 59.61% below the 52-week high and 3.2% above the 52-week low.
The specialty pharmaceutical company has a GuruFocus profitability rating of 7 out of 10. The return on equity of 21.67% and return on assets of 10.6% are outperforming 84% of companies in the drug manufacturers industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.92 is below the industry median of 0.97.
The company’s largest guru shareholder is Simons with 1.76% of outstanding shares, followed by Robert Bruce (Trades, Portfolio) with 0.67% and Chuck Royce (Trades, Portfolio) with 0.48%.
Disclosure: I do not own any stocks mentioned.
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