As of Tuesday, the GuruFocus All-in-One Screener, a Premium feature, found that the following stocks have low price-earnings ratios and have been bought by gurus. While some of them are great value investments, others may need to be checked again, according to the discounted cash flow (DCF) calculator.
CIT Group
With a market cap of $4.54 billion, CIT Group Inc. (CIT) is trading with a price-earnings ratio of 9.71. According to the DCF calculator, the stock has a fair value of $51.15 while trading at $46.00. The stock has tumbled 6.52% over the last 12 months and is now 14.12% below the 52-week high and 15.00% above the 52-week low.
The financial holding company has a GuruFocus profitability rating of 4 out of 10. While the return on equity of 7.84% is underperforming the sector, return on assets of 0.98% is outperforming 51% of companies in the banks industry. Its financial strength is rated 2 out of 10. The cash-debt ratio of 0.27 is below the industry median of 1.12.
The company’s largest guru shareholder is First Pacific Advisors (Trades, Portfolio) with 9.19% of outstanding shares, followed by Steven Romick (Trades, Portfolio)’s FPA Crescent Fund with 7.54%.
Enstar Group
With a $4.43 billion market cap, Enstar Group Ltd (ESGR) is trading with a price-earnings ratio of 7.56. According to the DCF calculator, the stock has a fair value of $291.51 while trading at $205.00. The share price has risen 18.33% over the past 12 months and is now 3.79% below the 52-week high and 29.71% above the 52-week low.
GuruFocus gave the insurance company a profitability rating of 6 out of 10. The return on equity of 14.01% and return on assets of 3.65% are outperforming 75% of companies in the insurance industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.69 is below the industry median of 2.74.
HOTCHKIS & WILEY is the company’s largest guru shareholder with 4.05% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 1.24% and Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.31%.
Brighthouse Financial
With a market cap of $4.37 billion, Brighthouse Financial Inc. (BHF) is trading with a price-earnings ratio of 2.66 and a price-book ratio of 0.25. According to the DCF calculator, the stock has a fair value of $162.24 while trading at about $40.60. Shares have risen 15.21% over the last 12 months and are now trading 7.68% below the 52-week high and 25.21% above the 52-week low.
While the return on equity of 11.52% is outperforming the sector, return on assets of 0.82% is underperforming 63% of companies in the insurance industry. The cash-debt ratio of 0.98 is below the industry median of 2.74.
The company’s largest guru shareholder is Dodge & Cox with 8.57% of outstanding shares, followed by David Einhorn (Trades, Portfolio)’s Greenlight Capital with 3.04%, Diamond Hill Capital (Trades, Portfolio) with 0.92% and Arnold Schneider (Trades, Portfolio) with 0.68%.
JOYY Inc.
JOYY Inc. (YY) has a market cap of $4.20 billion and is trading with a price-earnings ratio of 7.88 and a price-book ratio of 1.15. According to the DCF calculator, the stock has a fair value of $89.79 while trading at about $66.09. Shares have fallen 6.78% over the last 12 months.
GuruFocus gave the company a profitability rating of 8 out of 10. The return on equity of 15.24% and return on assets of 10.71% are outperforming 77% of companies in the interactive media industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 4.5 is below the industry median of 4.81.
With 0.85% of outstanding shares, Sarah Ketterer (Trades, Portfolio)’s Causeway Capital Management is the company’s largest guru shareholder, followed by Ron Baron (Trades, Portfolio) with 1.28%, Pioneer Investments (Trades, Portfolio) with 0.39% and Simons’ firm with 0.33%
Foot Locker
Foot Locker Inc. (FL) has a market cap of $4.10 billion. Its shares are trading with a price-earnings ratio of 8.48 and a price-book ratio of 1.74. According to the DCF calculator, the stock has a fair value of $49.44 while trading at $39.40. Shares have fallen 30.67% over a 12-month period and are currently trading 41.90% below the 52-week high and 19.29% above the 52-week low.
The shoe retailer has a GuruFocus profitability rating of 8 out of 10. The return on equity of 20.6% and return on assets of 9.27% are outperforming 84% of companies in the apparel and accessories manufacturing industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.22 is below the industry median of 0.38.
The company’s largest guru shareholder is Ray Dalio (Trades, Portfolio)’s Bridgewater Associates with 0.77% of outstanding shares, followed by Lee Ainslie (Trades, Portfolio)’s Maverick Capital with 0.32%, John Rogers (Trades, Portfolio) with 0.25% and Richard Pzena (Trades, Portfolio)’s Pzena Investment Management with 0.22%.
Equity Commonwealth
Equity Commonwealth (EQC) has a market cap of $4.00 billion. Its shares are trading with a price-earnings ratio of 8.44 and a price-book ratio of 1.29. According to the DCF calculator, the stock has a fair value of $41.63 while trading at $32.83. Shares have risen 6.89% over a 12-month period and are currently trading 5.92% below the 52-week high and 7.31% above the 52-week low.
The real estate investment trust has a GuruFocus profitability rating of 5 out of 10. The return on equity of 14.58% and return on assets of 13.31% are outperforming 87% of companies in the REITs industry. Its financial strength is rated 8 out of 10. The cash-debt ratio of 123.79 is far above the industry median of 0.06.
The company’s largest guru shareholder is Simons’ firm with 1.06% of outstanding shares, followed by the Wallace Weitz (Trades, Portfolio) with 0.21%, Rogers with 0.07% and Pioneer Investments (Trades, Portfolio) with 0.05%.
Disclosure: I do not own any stocks mentioned.
Read more here:
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- 6 Guru Stocks Boosting Book Value
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