According to the GuruFocus All-In-One Screener, a Premium feature, the following defensive companies were trading with low price-sales ratios as of Feb. 3.
Lockheed Martin
Shares of Lockheed Martin Corp. (LMT, Financial) were trading around $332 with a price-sales ratio of 1.38 and a price-earnings ratio of 13.24.
The company has a $90.14 billion market cap. The share price has risen at an annualized rate of 17.13% over the past decade.
The discounted cash flow calculator gives the stock a fair value of $4401.08, suggesting it is undervalued with an 19.75% margin of safety.
The aerospace and defense company's largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.02% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.02% and Ronald Muhlenkamp (Trades, Portfolio) with 0.01%.
Northrop Grumman
On Wednesday, Northrop Grumman Corp. (NOC, Financial) was trading around $286.61 per share with a price-sales ratio of 1.31 and a price-earnings ratio of 15.07.
The company has a market cap of $47.78 billion. The stock has risen at an annualized rate of 17.74% over the past 10 years.
The discounted cash flow calculator gives the stock a fair value of $307.33, suggesting it is undervalued with a 6.74% of margin of safety.
With a 0.08% stake, Simons' firm is the company's largest guru shareholder, followed by Paul Tudor Jones (Trades, Portfolio) with 0.01% and Pioneer Investments (Trades, Portfolio) with 0.01%.
General Dynamics
General Dynamics Corp. (GD, Financial) was trading around $146.68 on Wednesday with a price-sales ratio of 1.11 and a price-earnings ratio of 13.33.
The defense company has a market cap of $42.02 billion. The stock has risen at an annualized rate of 8.89% over the past decade.
The discounted cash flow calculator gives the stock a fair value of $117.72, suggesting it is overpriced by 24.60%.
The company's largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 0.91% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.45% and Bill Nygren (Trades, Portfolio) with 0.28%.
L3Harris
L3Harris Technologies Inc. (LHX, Financial) was trading around $171.51 with a price-sales ratio of 2.05 and a price-earnings ratio of 28.40.
The defense company has a market cap of $36.03 billion. The stock has risen at an annualized rate of 15.24% over the past decade.
The discounted cash flow calculator gives the stock a fair value of $71.34, suggesting it is overpriced by 140%.
With a 0.62% stake, the T Rowe Price Equity Income Fund (Trades, Portfolio) is the company's largest guru shareholder, followed by Diamond Hill Capital (Trades, Portfolio) with 0.49% and Simons' firm with 0.20%.
Textron
Textron Inc. (TXT, Financial) shares were trading around $42.26 with a price-sales ratio of 0.88 and a price-earnings ratio of 36.36.
The industrial company has a $10.35 billion market cap. The share price has risen at an annualized rate of 5.77% over the past decade.
The discounted cash flow calculator gives the stock a fair value of $3.42, suggesting it is overpriced by 1,223.39%.
The company's largest guru shareholder is Richard Pzena (Trades, Portfolio) with 2.97% of outstanding shares, followed by PRIMECAP Management with 2.85% and Mario Gabelli (Trades, Portfolio) with 0.94%.
Disclosure: I do not own any stocks mentioned.
Read more here:
- 5 Cheap Real Estate Companies
- 5 Financial Companies Gurus Are Buying
- 5 Cyclical Companies Outperforming the Market
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
