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Tiziano Frateschi
Tiziano Frateschi
Articles (2569)  | Author's Website |

6 Health Care Stocks Trading With Low Price-Sales Ratios

Walgreens Boots Alliance on the list

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.

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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.

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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.

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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.

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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.

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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.

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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.

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About the author:

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

Visit Tiziano Frateschi's Website


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