Here are eight stocks gurus are buying that are trading with low price-earnings (P/E) ratios. Most of them are greatly undervalued, according to the DCF calculator.
Toyota Motor Corp. ADRĂ‚ (TM) with a market cap of $197.63 billion is trading with a P/E ratio of 10.55 and a price-sales (P/S) ratio of 0.77. According to the DCF calculator the stock has a fair value of $124.7 while trading at about $118 with a margin of safety of 5%. The price has risen 3% during the last 12 months and is now 3.87% below its 52-week high and 21.07% above its 52-week low.
The company designs, manufactures and sells sedans, minivans, compact cars, sport-utility vehicles, trucks and related parts and accessories. It also provides financing, vehicle and equipment leasing and other financial services.
Two hedge funds hold the company. The gurus holding the largest portions of outstanding shares are Jim Simons (Trades, Portfolio) with 0.06% followed by NWQ Managers (Trades, Portfolio) with 0.02%.
China Mobile Ltd. ADRĂ‚ (CHL) with a market cap of $226.34 billion is trading with a P/E ratio of 13.18 and a P/S ratio of 2.18. According to the DCF calculator the stock has a fair value of $57.85 while trading at about $55.27 with a margin of safety of 4%. The price has risen by 5% during the last 12 months and is now 13.49% below its 52-week high and 10.14% above its 52-week low.
The company provides cellular telecommunications and related services in the People's Republic of China and Hong Kong SAR. It offers voice services, voice value-added services and telecommunications network planning.
Two hedge funds hold the company. The gurus holding the largest portions of outstanding shares are Simons with 0.06% and Matthews Pacific Tiger Fund (Trades, Portfolio) with 0.06%.
Enstar Group Ltd. (ESGR) with a market cap of $3.78 billion is trading with a P/E ratio of 10.72 and a P/S ratio of 3.10. According to the DCF calculator the stock has a fair value of $333.38 while trading at about $195 with a margin of safety of 41%. The price has risen by 30% during the last 12 months and is now 6.69% below its 52-week high and 37.23% above its 52-week low.
The company acquires and manages insurance and reinsurance companies in runoff and portfolios of insurance and reinsurance business in runoff and provides management, consulting and other services to the insurance and reinsurance industry.
Two hedge funds hold the company. The gurus holding the largest portions of outstanding shares are Chuck Akre (Trades, Portfolio) with 7.49% and HOTCHKIS & WILEY with 2.08%.
Spectra Energy Partners LPĂ‚ (SEP) with a market cap of $14.15 billion is trading with a P/E ratio of 14.32 and a P/S ratio of 5.47. According to the DCF calculator the stock has a fair value of $34.57 while trading at about $46.25. It is overpriced by 34%. The price has risen by 8% during the last 12 months and is now 8.38% below its 52-week high and 16.97% above its 52-week low.
It is engaged in the transmission, storage and gathering of natural gas, the transportation and storage of crude oil and the transportation of natural gas liquids.
Two hedge funds hold the company. The gurus holding the largest portions of outstanding shares are Simons with 0.13% and T Boone Pickens (Trades, Portfolio) with 0.01%.
Assurant Inc. (AIZ) with a market cap of $5.4 billion is trading with a P/E ratio of 10.11 and a P/S ratio of 0.74. According to the DCF calculator the stock has a fair value of $100.27 while trading at about $94.71 with a margin of safety of 6%. The price has risen by 21% during the last 12 months and is now 1.68% below its 52-week high and 47.13% above its 52-week low.
The company is a provider of specialized insurance products and related services in North America and selected other international markets.
Two hedge funds hold the company. The gurus holding the largest portions of outstanding shares are Simons with 0.38% and Richard Pzena (Trades, Portfolio) with 0.14%.
The Michaels Companies Inc. (MIK) with a market cap of $4.43 billion is trading with a P/E ratio of 12.35 and a P/S ratio of 0.87. According to the DCF calculator the stock has a fair value of $18.73 while trading at about $21.62; it is overpriced by 15%. The price has risen by 4% during the last 12 months and is now 31.06% below its 52-week high and 11.10% above its 52-week low.
The company owns and operates a chain of specialty retail stores in 49 states and Canada featuring arts, crafts, framing, floral, home decor and seasonal merchandise for the hobbyist and do-it-yourself home decorator.
Two hedge funds hold the company. The gurus holding the largest portions of outstanding shares are Simons with 0.06% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.
Fibria Celulose SA ADRĂ‚ (FBR) with a market cap of $5.4 billion is trading with a P/E ratio of 6.56 and a P/S ratio of 1.74. According to the DCF calculator the stock has a fair value of $13.97 while trading at about $9.75 with a margin of safety of 30%. The price has dropped by 10% during the last 12 months and is now 11.76% below its 52-week high and 68.39% above its 52-week low.
It was incorporated under the laws of the Federative Republic of Brazil, as a publicly held company with unlimited duration. The company is a producer of eucalyptus pulp.
Two hedge funds hold the company. The gurus holding the largest portions of outstanding shares are Simons with 0.77% and Steven Cohen (Trades, Portfolio) with 0.04%.
Prudential Financial Inc. (PRU) with a market cap of $44.69 billion is trading with a P/E ratio of 9.76 and a P/S ratio of 0.78. According to the DCF calculator the stock has a fair value of $113.97 while trading at about $104 with a margin of safety of 9%. The price has risen by 50% during the last 12 months and is now 4.04% below its 52-week high and 81.71% above its 52-week low.
The company through its subsidiaries and affiliates offers financial products and services including life insurance, annuities, retirement-related services, mutual funds and investment management.
Two hedge funds hold the company. The gurus holding the largest portions of outstanding shares are Sarah Ketterer (Trades, Portfolio) with 0.38% and John Buckingham (Trades, Portfolio) with 0.02%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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