Goodyear Tire Among Companies Trading With Very Low PE

Stocks trading with a PE below 2 and a wide margin of safety

Author's Avatar
Feb 17, 2016
Article's Main Image

The following are companies with high and growing dividend yields that gurus are buying according to GuruFocus' All-in-One Screener.

Goodyear Tire & Rubber Co. (GT) is trading with a P/E ratio of 2.90. According to the DCF calculator, the stock has a fair value of $14.34, while it is trading at about $11.77. That means it is overpriced by 152%. The price has risen by 12% during the last 12 months and is now 15.89% below its 52-week high and 19.24% above its 52-week low.

The company is engaged in manufacturing of tires. It develops, manufactures, markets and distributes tires for various applications.

Diamond Hill Capital (Trades, Portfolio) is the largest shareholder among the gurus with 1.82% of outstanding shares, followed by HOTCHKIS & WILEY with 1.56%, David Tepper (Trades, Portfolio) with 0.8%, Pioneer Investments (Trades, Portfolio) with 0.49%, Joel Greenblatt (Trades, Portfolio) with 0.16% and Scott Black (Trades, Portfolio) with 0.1%.

Visteon Corp. (VC) is trading with a P/E ratio of 1.30. According to the DCF calculator, the stock has a fair value of $59.82, while it is trading at about $63. That means it is slightly overpriced by 5%. The price has dropped by 37% during the last 12 months and is now 48.29% below its 52-week high and 6.92% above its 52-week low.

The company is a supplier of automotive systems, modules and components to original equipment manufacturers.

Steven Cohen (Trades, Portfolio) is the largest shareholder among the gurus with 1.99% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 1.61%, Jim Simons (Trades, Portfolio) with 1.03%, Joel Greenblatt (Trades, Portfolio) with 0.86%, Private Capital (Trades, Portfolio) with 0.74%, and Third Avenue Management (Trades, Portfolio) with 0.3%

MGIC Investment Corp. (MTG) is trading with a P/E ratio of 2.60. According to the DCF calculator, the stock has a fair value of $26.97, while it is trading at about $6.80. That means it is trading with a margin of safety of 75%. The price has dropped by 26% during the last 12 months and is now 42.15% below its 52-week high and 20.43% above its 52-week low.

The company is a holding company that provides private mortgage insurance and ancillary services.

The company’s largest shareholder among the gurus is John Paulson (Trades, Portfolio) with 3.36% of outstanding shares, followed by John Griffin (Trades, Portfolio) 2.82%, Howard Marks (Trades, Portfolio) with 2.66%, Lee Ainslie (Trades, Portfolio) with 1.4%, Jim Simons (Trades, Portfolio) with 0.93%, George Soros (Trades, Portfolio) with 0.35% and Chuck Royce (Trades, Portfolio) with 0.14%.

Korea Electric Power Corp. (KEP) is trading with a P/E ratio of 2.70. According to the DCF calculator, the stock has a fair value of $94.78, while it is trading at about $22. That means it is trading with a margin of safety of 77%. The price has risen by 6% during the last 12 months and is now 7.56% below its 52-week high and 15.42% above its 52-week low.

The company is engaged in the generation, transmission and distribution of electricity and development of electric power resources in the Republic of Korea.

Donald Smith (Trades, Portfolio) is the largest shareholder among the gurus with 0.25% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.02% and Sarah Ketterer (Trades, Portfolio) with 0.02%.

United Continental Holdings Inc. (UAL) is trading with a P/E ratio of 2.80. According to the DCF calculator, the stock has a fair value of $208.79, while it is trading at about $49. That means it is trading with a margin of safety of 77%. The price has dropped by 27% during the last 12 months and is now 32.26% below its 52-week high and 14.65% above its 52-week low.

United Continental is the holding company of United Airlines.

The company’s largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 5.22% of outstanding shares, followed by Leon Cooperman (Trades, Portfolio) 0.75%, Sarah Ketterer (Trades, Portfolio) with 0.67%, Alan Fournier (Trades, Portfolio) with 0.39%, Jim Simons (Trades, Portfolio) with 0.38%, Pioneer Investments (Trades, Portfolio) with 0.37%, David Tepper (Trades, Portfolio) with 0.16%, Joel Greenblatt (Trades, Portfolio) with 0.15% and Steven Cohen (Trades, Portfolio) with 0.03%.

Virgin America Inc. (VA) is trading with a P/E ratio of 2.90. According to the DCF calculator, the stock has a fair value of $113.12, while it is trading at about $28. That means it is trading with a margin of safety of 75%. The price has dropped by 19% during the last 12 months and is now 28.90% below its 52-week high and 5.97% above its 52-week low.

The company is a low-cost airline based in California that provides scheduled air travel in the continental U.S. and Mexico.

The largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 2.7% of outstanding shares, followed by RS Investment Management (Trades, Portfolio) 1.16%, Chuck Royce (Trades, Portfolio) with 0.51%, Steven Cohen (Trades, Portfolio) with 0.49% and Ken Fisher (Trades, Portfolio) with 0.28%.

Chemtura Corp. (CHMT) is trading with a P/E ratio of 3. According to the DCF calculator, the stock has a fair value of $93.32, while it is trading at about $26. That means it is trading with a margin of safety of 72%. The price has risen by 3% during the last 12 months and is now 20.19% below its 52-week high and 9.83% above its 52-week low.

The company manufactures and markets a number of polymer and specialty chemical products. Its businesses are grouped into five reporting segments: Polymer Additives, Performance Specialties, Consumer Products, Crop Protection and Other.

Mario Gabelli (Trades, Portfolio) is the largest shareholder among the gurus with 7.84% of outstanding shares, followed by Mason Hawkins (Trades, Portfolio) with 6.38%, RS Investment Management (Trades, Portfolio) with 2.58%, John Keeley (Trades, Portfolio) with 2.46%, Jim Simons (Trades, Portfolio) with 0.82%, Joel Greenblatt (Trades, Portfolio) with 0.33%, Steven Cohen (Trades, Portfolio) with 0.09%, Paul Tudor Jones (Trades, Portfolio) with 0.04% and James Barrow (Trades, Portfolio) with 0.01%.

Assured Guaranty Ltd. (AGO) is trading with a P/E ratio of 3.20. According to the DCF calculator, the stock has a fair value of $77.59, while it is trading at about $23. That means it is trading with a margin of safety of 70%. The price has dropped by 13% during the last 12 months and is now 22.69% below its 52-week high and 5.55% above its 52-week low.

The company provides credit protection products to the U.S. and international public finance, infrastructure and structured finance markets.

The company’s largest shareholder among the gurus is George Soros (Trades, Portfolio) with 0.6% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) 0.53%, Arnold Schneider (Trades, Portfolio) with 0.83%, Jeremy Grantham (Trades, Portfolio) with 0.26% and Diamond Hill Capital (Trades, Portfolio) with 0.23%.

Popular Inc. (BPOP) is trading with a P/E ratio of 1.86. According to the DCF calculator, the stock has a fair value of $92.46, while it is trading at about $26. That means it is trading with a margin of safety of 72%. The price has dropped by 23% during the last 12 months and is now 28.94% below its 52-week high and 13.66% above its 52-week low.

Popular is a financial institution that operates in Puerto Rico and the U.S.Â

Diamond Hill Capital (Trades, Portfolio) is the largest shareholder among the gurus with 6.64% of outstanding shares, followed by HOTCHKIS & WILEY with 6.58%, Michael Price (Trades, Portfolio) with 0.27%, Steven Cohen (Trades, Portfolio) with 0.25%, Jim Simons (Trades, Portfolio) with 0.82%, Richard Pzena (Trades, Portfolio) with 0.21% and George Soros (Trades, Portfolio) with 0.01%.