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 (P/S) ratios.
Ingersoll-Rand PLCĂ‚ (IR) is trading at about $64 with a P/S ratio of 1.28 and an estimated price-earnings (P/E) multiple of 11.79. The company has a market cap of $16.52 billion; over the last 10 years, the stock has risen by 116%. During the last 52 weeks, the price has been as high as $68.97 and as low as $47.08.
Ingersoll-Rand is a diversified company that provides products, services and solutions to enhance the quality and comfort of air in homes and buildings, transport and protect food and perishables and increase industrial productivity and efficiency.
The DCF model gives a fair value of $57.9 making the stock overpriced by 11%. The Peter Lynch earnings line puts the stock as undervalued, giving a fair price of $81.2.
The largest shareholder among the gurus is Pioneer Investments (Trades, Portfolio) with 0.92% of outstanding shares followed by NWQ Managers (Trades, Portfolio) with 0.43%, Steven Cohen (Trades, Portfolio) with 0.22%, David Tepper (Trades, Portfolio) with 0.18%, Stanley Druckenmiller (Trades, Portfolio) with 0.09% and Jim Simons (Trades, Portfolio) with 0.06%.
The Travelers Companies Inc. (TRV) is trading at about $115 with a P/S ratio of 1.29 and an estimated P/E multiple 11.12. The company has a market cap of $33.18 billion; over the last 10 years, the stock has risen by 149%. During the last 52 weeks, the price has been as high as $119.32 and as low as $97.18.
The company through its subsidiaries provides commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals.
The DCF model gives a fair value of $146.85 making the stock undervalued with a margin of safety of 22%. The Peter Lynch earnings line suggests the stock is more undervalued, giving a fair price of $155.3.
Jeremy Grantham (Trades, Portfolio) is the largest shareholder among the gurus with 0.81% of outstanding shares followed by Pioneer Investments (Trades, Portfolio) with 0.34%, Mairs and Power (Trades, Portfolio) with 0.2%, Barrow, Hanley, Mewhinney & Strauss with 0.15%, Tom Gayner (Trades, Portfolio) with 0.11%, PRIMECAP Management (Trades, Portfolio) with 0.08%, Dodge & Cox with 0.07% and John Hussman (Trades, Portfolio) with 0.03%.
Sumitomo Mitsui Financial Group Inc. ADRĂ‚ (SMFG) is trading at about $6.60 with a P/S ratio of 1.30 and an estimated P/E multiple of 6.17. The company has a market cap of $45.19 billion; over the last 10 years, the stock has dropped by 66%. During the last 52 weeks, the price has been as high as $8.49 and as low as $5.01.
The company and its subsidiaries offer a diverse range of financial services, including commercial banking, leasing, securities, consumer finance and other services.
The DCF model gives a fair value of $10.38 making the stock undervalued with a margin of safety of 38%.
The largest shareholder among the gurus is Sarah Ketterer (Trades, Portfolio) with 0.04% of outstanding shares followed by Simons with 0.03%.
Universal Health Services Inc. Class BĂ‚ (UHS) is trading at about $123 with a P/S ratio of 1.33 and an estimated P/E multiple of 17.51. The company has a market cap of $12 billion; over the last 10 years, the stock has risen by 322%. During the last 52 weeks, the price has been as high as $141.02 and as low as $100.82
The company through its subsidiaries is engaged in the business of owning and operating acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers.
The DCF model gives a fair value of $185.12 making the stock undervalued with a margin of safety of 33%, but the Peter Lynch earnings line suggests the stock is overpriced giving a fair price of $105.6.
Vanguard Health Care Fund (Trades, Portfolio) is the largest shareholder among the gurus with 4.05% of outstanding sharing followed by Lee Ainslie (Trades, Portfolio) with 2.84%, Westport Asset Management (Trades, Portfolio) with 0.41%, Joel Greenblatt (Trades, Portfolio) with 0.34%, Ron Baron (Trades, Portfolio) with 0.25, RS Investment Management (Trades, Portfolio) with 0.19% and Private Capital (Trades, Portfolio) with 0.13%.
Omnicom Group Inc. (OMC) is trading at about $84 with a P/S ratio of 1.34 and an estimated P/E multiple 18.33. The company has a market cap of $19.87 billion; over the last 10 years, the stock has risen by 84%. During the last 52 weeks, the price has been as high as $87.50 and as low as $64.12.
Omnicom Group is an advertising, marketing and corporate communications company that provides professional services to clients through multiple agencies.
The DCF model gives a fair value of $53.92 making the stock overpriced by 56%, but the Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of $68.7.
The largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with 3.45% of outstanding shares followed by Richard Pzena (Trades, Portfolio) with 1.96%, Ruane Cunniff (Trades, Portfolio) with 1.01%, John Rogers (Trades, Portfolio) with 0.53%, Grantham with 0.29%, HOTCHKIS & WILEY with 0.28% and Simons with 0.27%.
American International Group Inc. (AIG) is trading at about $57 with a P/S ratio of 1.33 and an estimated forward P/E multiple of 10.38. The company has a market cap of $61.93 billion; over the last 10 years, the stock has dropped by 95%. During the last 52 weeks, the price has been as high as $64.31 and as low as $48.41.
The company through its subsidiaries provides insurance and related services in the U.S. and abroad.
The DCF model gives a fair value of 43 cents making the stock overpriced by 13,388%, but the Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of 60 cents.
Carl Icahn (Trades, Portfolio) is the largest shareholder among the gurus, with 4.26% of outstanding shares followed by HOTCHKIS & WILEY with 1.58%, First Pacific Advisors (Trades, Portfolio) with 1.16%, Steven Romick (Trades, Portfolio) with 0.88%, John Paulson (Trades, Portfolio) with 0.85% and First Eagle Investment (Trades, Portfolio) with 0.78%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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