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Tiziano Frateschi
Tiziano Frateschi
Articles (2805)  | Author's Website |

5 Cyclical Stocks Trading With Low Price-Earnings Ratio

Green Brick Partners makes the list

As of Jan. 28, the GuruFocus All-in-One Screener, a Premium feature, found that the following guru-owned cyclical stocks have low price-earnings ratios. While some of them are great value investments, others may need to be researched more carefully, according to the discounted cash flow calculator.

Green Brick Partners

With a market cap of $1.06 billion, Green Brick Partners Inc. (GRBK) has a price-earnings ratio of 9.87 and a price-book ratio of 1.61. According to the DCF calculator, the stock has a fair value of $20.98 while trading at $19.35.

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The stock has climbed 70.07% over the last 12 months and is now 16.29% below the 52-week high and 270.46% above the 52-week low.

The company, which provides land and construction financing to its controlled builder, has a GuruFocus profitability rating of 6 out of 10. The return on equity of 18.17% and return on assets of 10.97% are outperforming 80% of companies in the homebuilding and construction industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.19 is below the industry median of 0.47.

David Einhorn (Trades, Portfolio) is the company's largest guru shareholder with 47.61% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 1.39% and 0.85% and HOTCHKIS & WILEY with 0.17%.

Zumiez

With a $1.14 billion market cap, Zumiez Inc. (ZUMZ) is trading with a price-earnings ratio of 15. According to the DCF calculator, the stock has a fair value of $48.47 while trading at $42.20.

The share price has risen 30% over the past 12 months and is now 8.8% below the 52-week high and 221% above the 52-week low.

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The U.S. retailer has a GuruFocus profitability rating of 8 out of 10. The return on equity of 15.55% and return on assets of 7.78% are outperforming 82% of companies in the retail, cyclical industry. Its financial strength is rated 5 out of 10 with the cash-debt ratio of 0.97.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 1.03% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.85% and Chuck Royce (Trades, Portfolio) with 0.56%.

M/I Homes

With a market cap of $1.56 billion, M/I Homes Inc. (MHO) is trading with a price-earnings ratio of 7.22. According to the DCF calculator, the stock has a fair value of $74.16 while trading at $50.

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Shares have increased 7.3% over the last 12 months and are now 9.8% below the 52-week high and 420% above the 52-week low.

The residential construction has a GuruFocus profitability rank of 7 out of 10. The company's return on equity of 19.14% and return on assets of 8.97% are outperforming 83% of competitors in the homebuilding and construction industry. Its financial strength is rated 6 out of 10 with a cash-debt ratio of 0.25.

Donald Smith is the company's largest guru shareholder with 3.77% of outstanding shares, followed by Ken Heebner (Trades, Portfolio) with 1.15% and Royce with 0.47%.

Sally Beauty

Sally Beauty Holdings Inc. (SBH) has a market cap of $1.69 billion and is trading with a price-earnings ratio of 15.26 and a price-book ratio of 111. According to the DCF calculator, the stock has a fair value of $10.62 while trading at $15.33.

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Shares have declined 1.73% over the last 12 months and are now trading 7.43% below the 52-week high and 144% above the 52-week low.

The U.S, company, which retails beauty-products, has a GuruFocus profitability rating of 7 out of 10. The return on assets of 4.11% are underperforming 71% of companies in the retail, cyclical industry. Its financial strength is rated 4 out of 10 with the cash-debt ratio of 0.22.

The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 1.97% of outstanding shares, followed by Simons' firm with 0.82% and Mario Gabelli (Trades, Portfolio)'s GAMCO investors with 0.54%.

Century Communities

Century Communities Inc. (CCS) has a market cap of $1.71 billion. Its shares are trading with a price-earnings ratio of 9.45. According to the DCF calculator, the stock has a fair value of $53.94 while trading at $47.6.

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Shares have climbed 55.3% over the past 12 months and are currently 9.7% below the 52-week high and 426% above the 52-week low.

The construction company has a GuruFocus profitability rating of 7 out of 10. The return on equity of 15.48% and return on assets of 6.43% are outperforming 72% of companies in the homebuilding and construction industry. Its financial strength is rated 4 out of 10 with the cash-debt ratio of 0.27.

Heebner is the company's largest guru shareholder with 1.02% of outstanding shares, followed by Howard Marks (Trades, Portfolio) with 0.99%.

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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