6 Cheap Stocks With Low Price-Sales Ratios

Target on the list

Author's Avatar
Jan 24, 2020
Article's Main Image

According to the GuruFocus All-In-One Screener, a Premium feature, the following companies were trading with low price-sales ratios as of Jan. 24.

Enterprise Products Partners

Enterprise Products Partners LP (EPD) was trading around $27.75 per share with a price-sales ratio of 1.8 and a price-earnings ratio of 12.80.

The company, which produces natural gas, crude oil and petrochemicals, has a market cap of $60.66 billion. The stock has risen at an annualized rate of 10.22% over the past decade.

The discounted cash flow calculator gives the company a fair value of $30.79, suggesting it is undervalued with a 10% margin of safety, while the Peter Lynch value gives the stock a fair price of $28.67.

f3fa3b270ae1b413ed27164f1d98f248.png

The company's largest guru shareholder is NWQ Managers (Trades, Portfolio) with 0.07% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.02%, T Boone Pickens (Trades, Portfolio) with 0.02% and Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.01%.

CSX Corp.

As of Jan. 24, CSX Corp. (CSX) was trading around $74.61 per share with a price-sales ratio of 5.13 and a price-earnings ratio of 18.38.

The company, which operates railroads in the Eastern United States, has a market cap of $59.06 billion. The stock has risen at an annualized rate of 18.62% over the last 10 years.

The DCF calculator gives the stock a fair value of $85.89, suggesting it is undervalued with a 13.1% margin of safety. The Peter Lynch fair value gives the stock a fair price of $62.55.

609bb06832839f44020531acff4f970e.png

With 0.53% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons’ firm with 0.34%, Pioneer Investments (Trades, Portfolio) with 0.14%, PRIMECAP Management (Trades, Portfolio) with 0.14% and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.07%.

Target

Target Corp. (TGT) was trading around $115.53 as of Jan. 24 with a price-sales ratio of 0.76 and a price-earnings ratio of 18.24.

The retailer has a market cap of $57.72 billion. The stock has risen at an annualized rate of 10.30% over the past decade.

The DCF calculator gives the company a fair value of $68.06, suggesting it is overpriced with a 67% margin of safety. The Peter Lynch earnings line gives the stock a fair price of $93.75.

10e053cfd1a4a6808aac84e7d4ccb892.png

The company's largest guru shareholder is Simons’ Renaissance Technologies with 0.81% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.47%, Pioneer Investments (Trades, Portfolio) with 0.23% and Mairs and Power (Trades, Portfolio) with 0.16%.

ABB Ltd

ABB Ltd. (ABB) was trading around $55.35 with a price-sales ratio of 1.77 and a price-earnings ratio of 34.24.

The company, which provides power and automation products, has a market cap of $55.45 billion. The stock has increased at an annualized rate of 5.61% over the last 10 years.

The DCF calculator gives the company a fair value of $4.92, suggesting it is overpriced by 358%. The Peter Lynch fair value gives the stock a fair price of $6.90.

532edb969c1bf55496cc46979012d024.png

With 0.60% of outstanding shares, Fisher is the company's largest guru shareholder, followed by Simons’ firm with 0.11% and Sarah Ketterer (Trades, Portfolio)’s Causeway Capital Management with 0.09%

Deere & Co.

Deere & Co. (DE) was trading around $170 as of Jan. 24 with a price-sales ratio of 1.42 and a price-earnings ratio of 16.96.

The company, which operates in the farm and heavy construction machinery industry, has a market cap of $53.88 billion. The stock has risen at an annualized rate of 13.85% over the past decade.

The DCF calculator gives the company a fair value of $133.13, suggesting it is overpriced by 28.55%. The Peter Lynch earnings line gives the stock a fair price of $154.35.

e6bed32d3510513233241c25ab814058.png

The company's largest guru shareholder is First Eagle Investment (Trades, Portfolio) with 1.44% of outstanding shares, followed by Al Gore (Trades, Portfolio) with 1.35%, Barrow, Hanley, Mewhinney & Strauss with 0.58% and Tom Gayner (Trades, Portfolio)’s Markel Corp with 0.32%.

Las Vegas Sands

Las Vegas Sands Corp. (LVS) was trading around $68.40 as of Jan. 24, with a price-sales ratio of 3.9 and a price-earnings ratio of 28.23.

The company, which operates in the travel and leisure industry, has a market cap of $53.34 billion. The stock has climbed at an annualized rate of 18.79% over the last 10 years.

The DCF calculator gives the company a fair value of $26.33, suggesting it is overpriced by 163%. The Peter Lynch fair value gives the stock a fair price of $36.90.

da21923bf7a7cd4486d624ff14c3bb50.png

With 0.43% of outstanding shares, Simons’ firm is the company's largest guru shareholder, followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.40%, PRIMECAP Management (Trades, Portfolio) with 0.11% and Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.10%.

Disclosure: I do not own any stocks mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.