6 Stocks With Low PS Ratios

PotlatchDeltic tops the list

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Jun 15, 2018
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According to the GuruFocus All-in-One Screener, the following stocks with market caps above $5 billion look cheap since they are trading with low price-sales ratios.

PotlatchDeltic Corp. (PCH, Financial) is trading around $51 per share with a price-sales ratio of 3.06, a price-earnings ratio of 25.82 and a forward price-earnings ratio of 9.44. The company has a market cap of $3.21 billion and the stock price has risen at an annualized rate of 5% over the last 10 years.

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The real estate investment trust operates five wood products manufacturing facilities. The discounted cash flow calculator gives the stock a fair value of $21.19 per share, suggesting it is overpriced by 141%. The Peter Lynch earnings line also suggests the stock overpriced, giving it a fair value of $29.7.

Jim Simons (Trades, Portfolio) is the company's largest shareholder among the gurus with 4.23% of outstanding shares, followed by Ken Heebner (Trades, Portfolio) with 0.61%, Chuck Royce (Trades, Portfolio) with 0.37%, NWQ Managers (Trades, Portfolio) with 0.36% and Ken Fisher (Trades, Portfolio) with 0.18%.

Hologic Inc. (HOLX, Financial) is trading around $38 per share with a price-sales ratio of 3.43 and a price-earnings ratio of 15.70. The company has a market cap of $10.58 billion and the stock price has risen at an annualized rate of 5% over the last 10 years.

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The company manufactures and supplies diagnostics products and medical imaging systems.

The largest guru shareholder of the company is the Vanguard Health Care Fund (Trades, Portfolio) with 1.61% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.56%, Jerome Dodson (Trades, Portfolio) with 0.27%, Kahn Brothers (Trades, Portfolio) with 0.24% and Steven Cohen (Trades, Portfolio) with 0.16%.

Paccar Inc. (PCAR, Financial) is trading around $64 per share with a price-sales ratio of 1.08 and a price-earnings ratio of 12.03. The company has a market cap of $22.52 billion and the stock price has risen at an annualized rate of 5% over the past decade.

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The DCF calculator gives the stock a fair value of $74.51, suggesting it is undervalued with a 14% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $79.8.

The company manufactures and sells light, medium and heavy-duty trucks and parts.

With 2.24% of outstanding shares, Hotchkis & Wiley is the company's largest guru shareholder, followed by NWQ Managers with 0.39%, Mario Gabelli (Trades, Portfolio) with 0.11% and Pioneer Investments with 0.08%.

Global Cord Blood Corp. (CO, Financial) is trading around $9.50 per share with a price-sales ratio of 6.62 and a price-earnings ratio of 27.88. The company has a market cap of $1.08 billion and the stock price has risen at an annualized rate of 5.1% over the last 10 years.

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The DCF model gives the stock a fair value of $3.64, suggesting it is overpriced by 160%. The Peter Lynch earnings line gives a fair price of $5.1.

The company provides cord blood processing and storage services.

The company's largest guru shareholder is Simons with 2.01% of outstanding shares.

S&T Bancorp Inc. (STBA, Financial) is trading around $44.16 per share with a price-sales ratio of 5.48 and a price-earnings ratio of 19.06. The company has a market cap of $1.55 billion and the stock price has risen at an annualized rate of 5.1% over the past decade.

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The company provides banking products and services. The DCF calculator gives a fair value of $33.56, suggesting the stock is overpriced by 32%. The Peter Lynch earnings line gives a fair price of $31.35.

The company's largest shareholder among the gurus is Hotchkis & Wiley with 0.06% of outstanding shares, followed by Simons with 0.02%.

Synaptics Inc. (SYNA, Financial) is trading around $48 per share with a price-sales ratio of 0.97 and a forward price-earnings ratio of 9.97. The company has a market cap of $1.65 billion and the stock price has risen at an annualized rate of 5.1% over the last 10 years.

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The company supplies and develops human interface solutions.

Richard Snow (Trades, Portfolio) is the largest guru shareholder of the company with 1.5% of outstanding shares, followed by Royce with 0.52%.

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