6 Stocks With Low Price-Sales Ratios

Dollar Tree makes the list

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According to the GuruFocus All-In-One Screener, a Premium feature, the following companies were trading with low price-sales ratios as of Feb. 6.

Accenture

Accenture PLC ACN was trading around $174.56 per share with a price-sales ratio of 2.5 and a price-earnings ratio of 22.6.

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The IT services provider has a market cap of $111 billion. The stock has risen at an annualized rate of 16.55% over the past decade.

The discounted cash flow calculator gives the company a fair value of $117, suggesting it is overpriced by 49%, while the Peter Lynch value gives the stock a fair price of $66.51.

The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.5% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.25% and the MS Global Franchise Fund (Trades, Portfolio) with 0.08%.

Copa Holdings

As of Wednesday, Copa Holdings SA CPA was trading around $70 per share with a price-sales ratio of 1.44 and a price-earnings ratio of 15.09.

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The provider of airline passenger services has a market cap of $2.89 billion. The stock has risen at an annualized rate of 5.62% over the past 10 years.

The DCF calculator gives the stock a fair value of $49.44, suggesting it is overpriced by 38%. The Peter Lynch fair value gives the stock a fair price of $40.89.

With 3.68% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder, followed by Ron Baron (Trades, Portfolio) with 1.95% and Charles Brandes (Trades, Portfolio) with 1.29%.

Dollar Tree

Dollar Tree Inc. DLTR was trading around $85.5 on Wednesday with a price-sales ratio of 0.86 and a price-earnings ratio of 24.69.

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The discount retail chain has a market cap of $20.33 billion. The stock has risen at an annualized rate of 16.75% over the past decade.

The DCF calculator gives the company a fair value of $37.4, suggesting it is overpriced with a 129% margin of safety. The Peter Lynch earnings line gives the stock a fair price of $52.2.

The company's largest guru shareholder is Chuck Akre (Trades, Portfolio) with 2.15% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.44% and Lee Ainslie (Trades, Portfolio) with 0.31%.

EBay

EBay Inc. EBAY was trading around $34.96 with a price-sales ratio of 2.78 and a price-earnings ratio of 16.82.

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The online marketplace and auction website has a market cap of $27.99 billion. The stock has climbed at an annualized rate of 13.07% over the past 10 years.

The DCF calculator gives the company a fair value of $22.37, suggesting it is overpriced by 56%. The Peter Lynch fair value gives the stock a fair price of $31.

With 2.51% of outstanding shares, Seth Klarman (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons’ firm with 1.9% and Paul Singer (Trades, Portfolio) with 1.24%.

Franklin Electric

Franklin Electric Co. Inc. FELE was trading around $50.98 with a price-sales ratio of 1.83 and a price-earnings ratio of 25.42.

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The company, which makes submersible pumps and electric motors, has a market cap of $2.39 billion. The stock has risen at an annualized rate of 15.06% over the past decade.

The DCF calculator gives the company a fair value of $30.73, suggesting it is overpriced by 65%. The Peter Lynch earnings line gives the stock a fair price of $30.45.

The company's largest guru shareholder is Chuck Royce (Trades, Portfolio) with 1.89% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.63%.

Evercore

Shares of Evercore Inc. EVR were trading around $53.84 on Wednesday with a price-sales ratio of 1.18 and a price-earnings ratio of 7.88.

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The independent investment bank has a market cap of $2.19 billion. The stock has climbed at an annualized rate of 7.45% over the past decade.

The DCF calculator gives the company a fair value of $73.73, suggesting it is undervalued with a 27% margin of safety. The Peter Lynch fair value gives the stock a fair price of $103.

With 2.96% of outstanding shares, Hotchkis & Wiley is the company's largest guru shareholder, followed by Cohen with 0.83% and Simons’ firm with 0.62%.

Disclosure: I do not own any stocks mentioned.

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