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Tiziano Frateschi
Tiziano Frateschi
Articles (2561)  | Author's Website |

6 Tech Stocks Trading With Low Price-Earnings Ratios

Xerox makes the list

As of June 17, the GuruFocus All-in-One Screener, a Premium feature, found that the following tech 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 researched more carefully, according to the Peter Lynch fair value.

Xerox Holdings

With a market cap of $3.7 billion, Xerox Holdings Corp. (XRX) has a price-earnings ratio of 3.27. According to the Peter Lynch earnings line, the stock has a fair value of $43.05 while trading at $17.39.

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The stock has lost 50.14% over the last 12 months and is now 55.94% below the 52-week high and 22.29% above the 52-week low.

The software company has a GuruFocus profitability rating of 6 out of 10. The return on equity of 22.38% and return on assets of 8.23% are outperforming 77% of companies in the software industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.61 is below the industry median of 2.24.

The company’s largest guru shareholder is Carl Icahn (Trades, Portfolio) with 11.02% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.61% and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 1.58%.

WISeKey International

With a $108 million market cap, WISeKey International Holding Ltd. (WKEY) is trading with a price-earnings ratio of 6.85.

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The share price has declined 48.39% over the past 12 months and is now 64.08% below the 52-week high and 105.13% above the 52-week low.

The cybersecurity company has a GuruFocus profitability rating of 1 out of 10. The return on equity of 42.7% and return on assets of 13.23% are outperforming 90% of companies in the semiconductors industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 1.17 is below the industry median of 1.47.

Seagate Technology

With a market cap of $13.2 billion, Seagate Technology PLC (STX) is trading with a price-earnings ratio of 7.71 and a price-book ratio of 7.45. According to the Peter Lynch earnings line, the stock has a fair value of $100.50 while trading at about $51.68.

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Shares have gained 22.55% over the last 12 months and are now 19.46% below the 52-week high and 32.44% above the 52-week low.

The company has a GuruFocus profitability rank of 7 out of 10. The company's return on equity of 98.51% and return on assets of 20.70% are outperforming 98% of competitors in the hardware industry. Its financial strength is rated 5 out of 10.The cash-debt ratio of 0.39 is below the industry median of 1.31.

The company’s largest guru shareholder is Jeff Ubben (Trades, Portfolio)’s ValueAct Holdings with 12.30% of outstanding shares, followed by Renaissance Technologies with 2.31% and Pioneer Investments (Trades, Portfolio) with 0.77%.

KVH Industries

KVH Industries Inc. (KVHI) has a market cap of $159 million and is trading with a price-earnings ratio of 4.66. According to the Peter Lynch earnings line, the stock has a fair value of $3.15 while trading at about $8.86.

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Shares have declined 10.32% over the last 12 months and are now trading 23.88% below the 52-week high and 39.31% above the 52-week low.

The company has a GuruFocus profitability rating of 4 out of 10. The return on equity of 23.90% and return on assets of 16.38% are outperforming 95% of companies in the hardware industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 8.12 is above to the industry median of 1.31.

With 2.43% of outstanding shares, Simons’ firm is the company’s largest guru shareholder.

9F

9F Inc. (JFU) has a market cap of $2.4 billion. Its shares are trading with a price-earnings ratio of 5.96. According to the Peter Lynch earnings line, the stock has a fair value of $30 while trading at $6.17.

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Share prices have declined 35% over the past 12 months and are currently trading 58.53% below the 52-week high and 18.43% above the 52-week low.

The Chinese platform providing financial services has a GuruFocus profitability rating of 4 out of 10. The return on equity of 12.13% and return on assets of 8.89% are outperforming 68% of competitors in the software industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 40.53 is above the industry median of 2.24.

JinkoSolar

JinkoSolar Holding Co. Ltd. (JKS) has a market cap of $723 million. Its shares are trading with a price-earnings ratio of 8.38 and a price-book ratio of 0.54. According to the Peter Lynch earnings line, the stock has a fair value of $29.10 while trading at $16.28.

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Shares have declined 33.9% over the past 12-month period and are currently trading 43.55% below the 52-week high and 42.56% above the 52-week low.

The company has a GuruFocus profitability rating of 6 out of 10. While the return on equity of 10.43% is outperforming the sector, return on assets of 2.09% is underperforming 53% of companies in the semiconductors industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.34 is far below the industry median of 1.47.

The company’s largest guru shareholder is Sarah Ketterer (Trades, Portfolio)’s Causeway Capital Management with 0.28% of outstanding shares, followed by John Hussman (Trades, Portfolio) with 0.17%.

Disclosure: I do not own any stocks mentioned

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

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