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Tiziano Frateschi
Tiziano Frateschi
Articles (2650)  | Author's Website |

5 Cyclical Stocks With Low Price-Earnings Ratios

eBay on the list

As of Sept. 4, the GuruFocus All-in-One Screener, a Premium feature, found that the following industrial companies 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 discounted cash flow calculator.

Haverty Furniture

With a market cap of $401 million, Haverty Furniture Companies Inc. (HVT) has a price-earnings ratio of 14.92 and a price-book ratio of 1.53. According to the DCF calculator, the stock has a fair value of $15.30 while trading at $21.34.

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The stock has gained 18% over the last 12 months and is now 6.24% below the 52-week high and 117% above the 52-week low.

The retailer of furniture and accessories has a GuruFocus profitability rating of 6 out of 10. The return on equity of 10.53% and return on assets of 4.73% are outperforming 75% of companies in the retail, cyclical industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.63 is above the industry median of 0.48.

Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder with 7.14% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 1.64% and Chuck Royce (Trades, Portfolio) with 1.49%.

Acorn

With a $35.65 million market cap, Acorn International Inc. (ATV) is trading with a price-earnings ratio of 6.11 and a price-book ratio of 0.55. According to the DCF calculator, the stock has a fair value of $28.47 while trading at $13.70.

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The share price has declined 12.07% over the past 12 months and is now 33.59% below the 52-week high and 72.11% above the 52-week low.

The marketing company has a GuruFocus profitability rating of 3 out of 10. The return on equity of 11.04% and return on assets of 9.12% are outperforming 75% of companies in the retail, cyclical industry. Its financial strength is rated 8 out of 10. The cash-debt ratio of 8.26 is above the industry median of 0.48.

Big 5

With a market cap of $124 million, Big 5 Sporting Goods Corp. (BGFV) is trading with a price-earnings ratio of 9.16. According to the DCF calculator, the stock has a fair value of $6.64 while trading at $5.68.

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Shares have gained 245% over the last 12 months and are now 32.94% below the 52-week high and 773% above the 52-week low.

The retailer of sporting goods has a GuruFocus profitability rank of 6 out of 10. The company's return on assets of 1.91% is outperforming 56% of competitors in the retail, cyclical industry. Its financial strength is rated 5 out of 10 with a cash-debt ratio of 0.05 that is below the industry median of 0.48.

Mario Gabelli (Trades, Portfolio)'s GAMCO Investors is the company's largest guru shareholder with 0.90% of outstanding shares, followed by Paul Tudor Jones (Trades, Portfolio) with 0.12%.

Buckle

Buckle Inc. (BKE) has a market cap of $991 million and is trading with a price-earnings ratio of 10.24 and a price-book ratio of 2.37. According to the DCF calculator, the stock has a fair value of $20.98 while trading at $20.

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Shares have increased 15.47% over the last 12 months and are now trading 29.63% below the 52-week high and 70.66% above the 52-week low.

The retailer of casual apparel has a GuruFocus profitability rating of 7 out of 10. The return on equity of 23.94% and return on assets of 11.16% are outperforming 92% of companies in the retail, cyclical industry. Its financial strength is rated 5 out of 10 with a cash-debt ratio of 0.84 that is above the industry median of 0.48.

With 2.14% of outstanding shares, Renaissance Technologies is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.26%.

eBay

eBay Inc. (EBAY) has a market cap of $37 billion. Its shares are trading with a price-earnings ratio of 8.03. According to the DCF calculator, the stock has a fair value of $28.89 while trading at $53.16.

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Shares have increased 35.33% over the past 12 months and are currently trading 12.94% below the 52-week high and 104.30% above the 52-week low.

The online marketplace has a GuruFocus profitability rating of 8 out of 10. The return on equity of 164.58% and return on assets of 25.9% are outperforming 98% of competitors in the cyclical industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.58 is above the industry median of 0.48.

The company's largest guru shareholder is Seth Klarman (Trades, Portfolio)'s The Baupost Group with 4.58% of outstanding shares, followed by Simons' firm with 1.90%.

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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