4 Defensive Stocks Trading With Low Price-Sales Ratios

Walmart tops the list

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Sep 28, 2020
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According to the GuruFocus All-In-One Screener, a Premium feature, the following defensive stocks were trading with low price-sales ratios as of Sept. 28.

Walmart

Shares of Walmart Inc. (WMT, Financial) were trading around $136.70 with a price-sales ratio of 0.72 and a price-earnings ratio of 21.80.

The U.S.-based retailer has a $387.37 billion market cap. The share price has risen at an annualized rate of 11.15% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $67.10, suggesting it is overpriced by 103%.

The company's largest guru shareholder is Bill Gates (Trades, Portfolio)' foundation with 0.41% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.39% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.27%.

PepsiCo

On Monday, PepsiCo Inc. (PEP, Financial) was trading around $131.58 per share with a price-sales ratio of 2.72 and a price-earnings ratio of 26.91.

The food and beverage company has a market cap of $182.18 billion. The stock has risen at an annualized rate of 9.25% over the past 10 years.

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The discounted cash flow calculator gives the stock a fair value of $52.33, suggesting it is overpriced by 151%.

With 0.47% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Yacktman Asset Management (Trades, Portfolio) with 0.27% and Diamond Hill Capital (Trades, Portfolio) with 0.19%.

Unilever

Unilever PLC (UL, Financial) was trading around $60.59 on Monday with a price-sales ratio of 2.79 and a price-earnings ratio of 24.23.

The company, which operates in the consumer packaged goods industry, has a market cap of $158.82 billion. The stock has risen at an annualized rate of 10.21% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $31.82, suggesting it is overpriced by 90.41%, while the Peter Lynch earnings line gives the stock a fair price of $28.53.

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With 0.20% of outstanding shares, Hotchkis & Wiley is the company's largest guru shareholder, followed by Simons' firm with 0.01%.

Costco

Costco Wholesale Corp. (COST, Financial) was trading around $347 per share with a price-sales ratio of 0.96 and a price-earnings ratio of 41.51.

The company has a market cap of $153.20 billion. The stock has risen at an annualized rate of 19.58% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $137.76, suggesting it is overpriced by 151%, while the Peter Lynch fair value is $53.42.

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The company's largest guru shareholder is Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway with 0.98% of outstanding shares, followed by Fisher with 0.74% and Spiros Segalas (Trades, Portfolio) with 0.44%.

Disclosure: I do not own any stocks mentioned.

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