Here are eight stocks gurus are buying that are trading with a very low price-earnings (P/E) ratio. Most of them are greatly undervalued, according to the DCF calculator.
Unum Group (UNM) with a market cap of $10.3 billion is trading with a P/E ratio of 11.64 and a price-sales (P/S) ratio of 0.97. The price has risen 47% during the last 12 months and is now 1.68% below its 52-week high and 85.04% above its 52-week low.
It provides insurance and noninsurance services through its subsidiaries. It also provides a complementary portfolio of other insurance products.
Two hedge funds are holding the company; the gurus holding the largest portion of outstanding shares are HOTCHKIS & WILEY with 3.66% followed by Donald Smith (Trades, Portfolio) with 2.93%.
Open Text Corp. (OTEX) with a market cap of $8.14 billion is trading with a P/E ratio of 6.61 and a P/S ratio of 4.02. According to the DCF calculator the stock has a fair value of $269.31 while trading at about $62 with a margin of safety of 77%. The price has risen by 38% during the last 12 months and is now 6.91% below its 52-week high and 48.39% above its 52-week low.
The company provides software products and services. It assists organizations in finding, utilizing and sharing business information. It is engaged in the design, development, marketing and sales of Enterprise Information Management software and solutions.
Two hedge funds are holding the company. The gurus holding the largest portion of outstanding shares are Richard Snow (Trades, Portfolio) with 0.83% and Jim Simons (Trades, Portfolio) with 0.23%.
Tegna Inc. (TGNA) with a market cap of $4.65 billion is trading with a P/E ratio of 10.88 and a P/S ratio of 1.46. According to the DCF calculator the stock has a fair value of $22.47 while trading at about $21.69. The price has dropped by 6% during the last 12 months and is now 14.54% below its 52-week high and 21.11% above its 52-week low.
It is an international media and marketing solutions company and diverse local content provider in the U.S. It operates in segments including Broadcasting and Digital.
Two hedge funds are holding the company. The gurus with the largest portion of outstanding shares are Diamond Hill Capital (Trades, Portfolio) with 4.24% and John Rogers (Trades, Portfolio) with 2.89%.
Itau Unibanco Holding SA ADRÂ (ITUB) with a market cap of $76.5 billion is trading with a P/E ratio of 9.65 and a P/S ratio of 1.85. According to the DCF calculator the stock has a fair value of $13.99 while trading at about $11.17; it has a margin of safety of 20%. The price has risen by 104% during the last 12 months and is now 9.85% below its 52-week high and 103.83% above its 52-week low.
The company provides financial products and services in Brazil. It provides investment banking, consumer credit card, real estate financing, leasing, foreign exchange and foreign trade financing services.
Two hedge funds are holding the company. The gurus with the largest portion of outstanding shares are Howard Marks (Trades, Portfolio) with 0.1% and Dodge & Cox with 0.07%.
Banco Macro SA ADRÂ (BMA) with a market cap of $4.2 billion is trading with a P/E ratio of 9.73 and a P/S ratio of 3.40. According to the DCF calculator the stock has a fair value of $237.25 while trading at about $71.88 with a margin of safety of 70%. The price has risen by 23% during the last 12 months and is now 13.59% below its 52-week high and 35.93% above its 52-week low.
The company provides standard banking products and services and has two categories of customers: retail customers and corporate customers.
Two hedge funds are holding the company. The gurus with the largest portion of outstanding shares are Jeremy Grantham (Trades, Portfolio) with 0.24% and Caxton Associates (Trades, Portfolio) with 0.19%.
The Travelers Companies Inc. (TRV) with a market cap of $33.33 billion is trading with a P/E ratio of 11.91 and a P/S ratio of 1.29. According to the DCF calculator the stock has a fair value of $139.47 while trading at about $117. The stock is undervalued with a margin of safety of 16%. The price has risen by 10% during the last 12 months and is now 4.69% below its 52-week high and 15.89% above its 52-week low.
The company through its subsidiaries provides commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals.
Currently two hedge funds are holding the company. The gurus with the largest portion of outstanding shares are Pioneer Investments (Trades, Portfolio) with 0.31% and Grantham with 0.31%.
Chicago Bridge & Iron Co NVÂ (CBI) with a market cap of $3.2 billion is trading with a P/E ratio of 11.69 and a P/S ratio of 0.3. According to the DCF calculator the stock has a fair value of $29.32 while trading at about $32; the stock is overpriced by 9%. The price has dropped by 11% during the last 12 months and is now 22.53% below its 52-week high and 22.59% above its 52-week low.
The company provides conceptual design, technology, engineering, procurement, fabrication, construction and commissioning services to customers in the energy, petrochemical and natural resource industries.
Currently two hedge funds are holding the company. The gurus with the largest portion of outstanding shares are Steven Cohen (Trades, Portfolio) with 1.76% and Joel Greenblatt (Trades, Portfolio) with 0.39%.
Axis Capital Holdings Ltd. (AXS) with a market cap of $5.75 billion is trading with a P/E ratio of 12.87 and a P/S ratio of 1.54. According to the DCF calculator the stock has a fair value of $72.12 while trading at about $65; the stock is undervalued with a margin of safety of 10%. The price has risen by 18% during the last 12 months and is now 1.84% below its 52-week high and 27.45% above its 52-week low.
The company through its subsidiaries provides a variety of insurance and reinsurance products to insured's and reinsured operations with main locations in Bermuda, the U.S. and Europe.
Two hedge funds are holding the company. The gurus with the largest portion of outstanding shares are Richard Pzena (Trades, Portfolio) with 5.51% and NWQ Managers (Trades, Portfolio) with 1.39%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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