Gurus are buying stocks that are trading with very low price-earnings (P/E) ratios. Most of them are greatly undervalued, according to the DCF calculator.
Companhia de Saneamento Basico do Estado de Sao Paulo SAĂ‚ (SBS), with a market cap of $5.72 billion, is trading with a P/E ratio of 7.80 and a price-sales (P/S) ratio of 1.43. According to the DCF calculator the stock has a fair value of $10.93 while it is trading at about $8.37 with a margin of safety of 23%. The price has risen by 76% during the last 12 months and is now 20.66% below its 52-week high and 110.30% above its 52-week low.
The company provides water and sewage services to residential, commercial, industrial and governmental customers. It also supplies water on wholesale basis and provides related consulting services.
Two hedge funds hold the company, and the leading shareholders among gurus are Jim Simons (Trades, Portfolio) with 0.35% followed by RS Investment Management (Trades, Portfolio) with 0.06%.
Assured Guaranty Ltd. (AGO), with a market cap of $5.01 billion, is trading with a P/E ratio of 4.78 and a P/S ratio of 2.72. According to the DCF calculator the stock has a fair value of $86.36 while trading at about $38.4 with a margin of safety of 56%. The price has risen by 42% during the last 12 months and is now 1.61% below its 52-week high and 76.23% above its 52-week low.
The company through its operating subsidiaries provides credit protection products to the U.S. and international public finance including infrastructure and structured finance markets.
Two hedge funds hold the company, and the gurus with the largest positions are Jeremy Grantham (Trades, Portfolio) with 0.99% and Chuck Royce (Trades, Portfolio) with 0.52%.
BBVA Banco Frances, S.A. ADRĂ‚ (BFR), with a market cap of $3.06 billion, is trading with a P/E ratio of 11.32 and a P/S ratio of 2.97. According to the DCF calculator the stock has a fair value of $48.19 while trading at about $17.12; it is currently undervalued with a margin of safety of 64%. The price has dropped by 12% during the last 12 months and is now 27.89% below its 52-week high and 5.68% above its 52-week low.
The company provides financial products and services to corporations, medium and small companies and individuals. It offers retail banking, enterprise banking and corporate and investment banking in Spain, Mexico, South America, the U.S. and Eurasia.
Two hedge funds are holding the company, and the gurus with the largest positions are Caxton Associates (Trades, Portfolio) with 0.07% and Simons with 0.05%.
Vista Outdoor Inc. (VSTO), with a market cap of $2.23 billion, is trading with a P/E ratio of 12.65 and a P/S ratio of 0.92. According to the DCF calculator the stock has a fair value of $32.1 while trading at about $37.92, overpriced by 18%. The price has dropped by 15% during the last 12 months and is now 29.66% below its 52-week high and 3.16% above its 52-week low.
The company designs, develops and manufactures ammunition, long guns and related equipment products. The company's business segments are shooting sports and outdoor products. Its brands include Fusion, Blazer, CCI and Alliant Powder.
Two hedge funds are holding the company, and the gurus with the largest holdings are First Eagle Investment (Trades, Portfolio) with 7.94% and Keeley Asset Management Corp (Trades, Portfolio) with 0.82%.
GameStop Corp. Class AĂ‚ (GME), with a market cap of $2.64 billion, is trading with a P/E ratio of 6.97 and a P/S ratio of 0.29. According to the DCF calculator the stock has a fair value of $39.81 while trading at about $25.95 with a margin of safety of 35%. The price has dropped by 36% during the last 12 months and is now 23.04% below its 52-week high and 29.10% above its 52-week low.
The company is a multichannel video game retailer. It sells new and preowned video game hardware, physical and digital video game software and accessories as well as PC entertainment software and new and preowned mobile and consumer electronics products.
Two hedge funds are holding the company and the gurus with the largest positions are NWQ Managers (Trades, Portfolio) with 1.93% and Simons with 0.86%.
Tech Data Corp. (TECD), with a market cap of $3.07 billion, is trading with a P/E ratio of 14.60 and a P/S ratio of 0.12. According to the DCF calculator the stock has a fair value of $64 while trading at about $87.24 and is overpriced by 36%. The price has risen by 28% during the last 12 months and is now 4.62% below its 52-week high and 50.44% above its 52-week low.
The company is a distributor of information technology (IT) products and logistics management and provides other value-added services.
Two hedge funds are holding the company, and the gurus with the largest holdings are Grantham with 0.5% and Ken Heebner (Trades, Portfolio) with 0.48%.
Spirit Airlines Inc. (SAVE), with a market cap of $4.06 billion, is trading with a P/E ratio of 14.27 and a P/S ratio of 1.85. According to the DCF calculator the stock has a fair value of $43.88 while it is trading at about $58.51 and is overpriced by 33%. The price has risen by 39% during the last 12 months and is now 3.13% below its 52-week high and 66.36% above its 52-week low.
The company is an airline based in Miramar, Florida. Its all-Airbus fleet currently operates more than 300 daily flights to over 56 destinations in the U.S., Caribbean and Latin America.
Two hedge funds are holding the company, and the gurus with the largest positions are Royce with 1.41% and PRIMECAP Management (Trades, Portfolio) with 1.35%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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