Stocks With Low Price to Sales: Barclays, Loews Corp

Ratio pinpoints bargain stocks

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Aug 02, 2016
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According to GuruFocus' All-in-One Screener, the following are the stocks with market caps above $5 billion that are trading with low price-sales ratios.

Canon Inc ADR. (CAJ) is trading at about $28 per share with a P/S ratio of 1.00 and an estimated forward price-earnings of 16.07. The company has a market cap of $63.8 billion and over the last 10 years, the stock has dropped by 40%. During the last 52 weeks, the price has been as high as $32.64 and as low as $26.60.

The company is a manufacturer of office multifunction devices, plain paper copying machines, laser printers, inkjet printers, cameras and lithography equipment.

The DCF model gives a fair value of $16.96, putting the stock overpriced by 67%. The Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of $23.7.

The largest shareholder among the gurus is Charles Brandes (Trades, Portfolio) with 0.11% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.05% and Manning and Napier Advisors Inc with 0.01%.

SK Telecom Co Ltd ADR. (SKM) is trading at about $23 with a P/S ratio of 1.00 and an estimated forward P/E of 10.51. The company has a market cap of $14.56 billion and over the last 10 years, the stock has risen by 5%. During the last 52 weeks, the price has been as high as $125.54 and as low as $17.52.

The company provides wireless telecommunications services. Its business segments are cellular services and fixed-line telecommunication services.

The DCF model gives a fair value of $23.34, putting the stock as fairly priced. The Peter Lynch earnings line suggests the stock is undervalued, giving a fair price of $32.7.

Sarah Ketterer (Trades, Portfolio) is the largest shareholder among the gurus, with 0.5% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.08% and Manning and Napier Advisors Inc with 0.01%.

Genuine Parts Co. (GPC) is trading at about $102 with a P/S ratio of 1.02 and an estimated forward P/E of 22.03. The company has a market cap of $15.3 billion and over the last 10 years, the stock has risen by 148%. During the last 52 weeks, the price has been as high as $105.97 and as low as $76.50.

The company is a service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical and electronic materials.

The DCF model gives a fair value of $56.04, putting the stock overpriced by 82%. The Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of $69.6.

The largest shareholder of the company among the gurus is Mario Gabelli (Trades, Portfolio) with 1.43% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 3%, Joel Greenblatt (Trades, Portfolio) with 0.17, Chuck Royce (Trades, Portfolio) with 0.08%, Dodge and Cox with 0.02% and Manning and Napier Advisors Inc with 0.01%.

Statoil ASA ADR. (STO) is trading at about $15.91, with a P/S ratio of 1.06 and an estimated forward P/E of 33.00. The company has a market cap of $55.44 billion and over the last 10 years, the stock has dropped by 47%. During the last 52 weeks, the price has been as high as $17.94 and as low as $10.89.

It is an integrated oil and gas company which explores, produces, transports, refines, and markets petroleum and petroleum-derived products. It has operations in Norway, Europe, North America, Africa, Asia and South America.

Jim Simons (Trades, Portfolio) is the largest shareholder among the gurus, with 0.09% of outstanding shares.

Barclays PLC ADR. (BCS) is trading at about $8.24 with a P/S ratio of 1.06 and an estimated forward P/E of 15.53. The company has a market cap of $33.64 billion and over the last 10 years, the stock has dropped by 81%. During the last 52 weeks, the price has been as high as $18.05 and as low as $6.76.

The company is a financial services provider engaged in personal banking, credit cards, corporate and investment banking and wealth and investment management. It operates in Europe, the Americas, Africa and Asia.

The largest shareholder of the company among the gurus is Ken Fisher (Trades, Portfolio) with 0.51% of outstanding shares, followed by Charles Brandes (Trades, Portfolio) with 0.15%, Jim Simons (Trades, Portfolio) with 0.08% and Sarah Ketterer (Trades, Portfolio) with 0.05%.

Principal Financial Group Inc. (PFG) is trading at about $46.63 with a P/S ratio of 1.12 and an estimated forward P/E of 11.87. The company has a market cap of $13.52 billion and over the last 10 years, the stock has dropped by 12%. During the last 52 weeks, the price has been as high as $58.02 and as low as $33.09.

The company offers retirement services, insurance solutions and asset management services. It provides financial products and services through financial services companies to businesses, individuals and institutional clients.

The DCF model gives a fair value of $42.06 putting the stock overpriced by 11%, but the Peter Lynch earnings line suggests the stock is undervalued, giving a fair price of $59.0.

Bill Nygren (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 1.89% of outstanding shares followed by Mairs and Power (Trades, Portfolio) with 1%, Jim Simons (Trades, Portfolio) with 0.17%, Jeremy Grantham (Trades, Portfolio) with 0.07%, Manning and Napier Advisors Inc with 0.02% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

Loews Corp. (L) is trading at about $41 with a P/S ratio of 1.13 and an estimated forward P/E Â of 56.62. The company has a market cap of $14.01 billion and over the last 10 years, the stock has risen by 10%. During the last 52 weeks, the price has been as high as $41.82 and as low as $33.84.

The company through its subsidiaries is engaged in commercial property and casualty insurance, operation of offshore oil and gas drilling rigs, production of natural gas and liquids, operation of interstate natural gas pipelines and operation of hotels.

The DCF model gives a fair value of $7.81, putting the stock overpriced by 429%. Even the Peter Lynch earnings line suggests the stock is overpriced, giving a fair price of $10.9.

The largest shareholder of the company among the gurus is T Rowe Price Equity Income Fund (Trades, Portfolio) with 2.4% of outstanding shares, followed by Chris Davis (Trades, Portfolio) with 1.79%, Diamond Hill Capital (Trades, Portfolio) with 1.37%, Barrow, Hanley, Mewhinney and Strauss with 0.98%, Donald Smith (Trades, Portfolio) with 0.6% and NWQ Managers (Trades, Portfolio) with 0.32%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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