According to the GuruFocus All-In-One Screener, a Premium feature, the following health care stocks were trading with low price-sales ratios as of July 13.
Cardinal Health
Shares of Cardinal Health Inc. (CAH) were trading around $56.50 with a price-sales ratio of 0.11 and a price-book ratio of 13.71.
The global provider of logistic solutions has a $16.5 billion market cap. The stock price has risen at an annualized rate of 7.83% over the past decade.
The Peter Lynch earnings line gives the stock a fair price of $67.65.
The company's largest guru shareholder is Richard Pzena (Trades, Portfolio) with 1.05% of outstanding shares, followed by Charles Brandes (Trades, Portfolio) with 0.58% and Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.44%.
AmerisourceBergen
On Monday, AmerisourceBergen Corp. (ABC) was trading around $103.76 per share with a price-sales ratio of 0.12 and a price-earnings ratio of 13.65.
The third-party logistic provider of pharmaceutical products has a market cap of $21.11 billion. The stock has risen at an annualized rate of 14.17% over the past 10 years.
The discounted cash flow calculator gives the stock a fair value of $81.33, suggesting it is overpriced by 27.85% at $103.98, while the Peter Lynch earnings line gives the stock a fair price of $114.
With 0.98% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Seth Klarman (Trades, Portfolio)’s The Baupost Group with 0.46% and Larry Robbins (Trades, Portfolio)’ Glenview Capital Management with 0.36%.
McKesson
McKesson Corp. (MCK) was trading around $155.34 on Monday with a price-sales ratio of 0.12 and a price-earnings ratio of 30.28.
The medical distributor has a market cap of $25.18 billion. The stock has risen at an annualized rate of 9.75% over the past decade.
The discounted cash flow calculator gives the stock a fair value of $55.22, suggesting it is overpriced by 178% at $153.53. The Peter Lynch earnings line gives the stock a fair price of $77.40.
With 2.13% of outstanding shares, Pzena’s firm is the company's largest guru shareholder, followed by the Vanguard Health Care fund and The Baupost Group with 1.03% each.
Magellan Health
Magellan Health Inc. (MGLN) was trading around $75 with a price-sales ratio of 0.26 and a price-earnings ratio of 25.09.
The provider of healthcare management services has a market cap of $1.87 billion. The stock has climbed at an annualized rate of 7.33% over the past 10 years.
The discounted cash flow calculator gives the stock a fair value of $32, suggesting it is overpriced by 134% at $74.92. The Peter Lynch earnings line gives the stock a fair price of $44.85.
Some notable guru shareholders are Simons’ firm with 3.26% of outstanding shares and Steven Cohen (Trades, Portfolio) with 2.24%.
Walgreens Boots Alliance
Walgreens Boots Alliance Inc. (WBA) was trading around $40.51 per share with a price-sales ratio of 0.26 and a price-earnings ratio of 49.40.
The retailer of pharmaceutical products has a market cap of $35.10 billion. The stock has risen at an annualized rate of 5.99% over the past decade.
The discounted cash flow calculator gives the stock a fair value of $11.26, suggesting it is overpriced by 250.53% at $39.47, while the Peter Lynch earnings line gives the stock a fair value of $12.30.
The company's largest guru shareholder is Tom Gayner (Trades, Portfolio) with 0.20% of outstanding shares.
Centene
Centene Corp. (CNC) was trading around $67.51 with a price-sales ratio of 0.37 and a price-earnings ratio of 34.10.
The organization focused on healthcare plans has a market cap of $39.10 billion. The stock has risen at an annualized rate of 28.97% over the past decade.
The discounted cash flow calculator gives the stock a fair value of $56.37, suggesting it is overpriced by 19.12% at $67.15. The Peter Lynch earnings line gives the stock a fair value of $29.70.
The company's largest guru shareholder is Andreas Halvorsen (Trades, Portfolio)’s Viking Global Investors with 2.80% of outstanding shares, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 1.77% and Daniel Loeb (Trades, Portfolio) with 1.12%.
Disclosure: I do not own any stocks mentioned.
Read more here:
- Smead Value Fund Sells Berkshire, Occidental Petroleum
- The T Rowe Price Equity Income Fund Cuts JPMorgan
- 5 Utilities Outperforming the Market
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
