5 Guru Stocks Trading With Low Price-Sales Ratios

Target tops the list

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Jun 21, 2021
Summary
  • Ratio lower that 4 for all these stocks
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According to the GuruFocus All-In-One Screener, a Premium feature, the following companies were trading with low price-sales ratios as of June 21.

3M

Shares of 3M Co. (MMM) were trading around $202.81 with a price-sales ratio of 3.59 and a price-earnings ratio of 20.69.

The company has a $117.56 billion market cap. The share price has risen at an annualized rate of 10.47% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $114.64, suggesting it is overpriced by 40.22%.

The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.88% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.31% and Mairs and Power (Trades, Portfolio) with 0.21%.

Target

On Monday, Target Corp. (TGT) was trading around $232.94 with a price-sales ratio of 1.20 and a price-earnings ratio of 19.

The U.S. general merchandise retailer has a market cap of $115.24 billion. The stock has risen at an annualized rate of 18.47% over the past 10 years.

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The discounted cash flow calculator gives the stock a fair value of $192.57, suggesting it is overpriced by 20.96%.

With a 0.72% stake, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder, followed by Spiros Segalas (Trades, Portfolio) with 0.38% and Pioneer Investments (Trades, Portfolio) with 0.25%.

CVS Health

CVS Health Corp (CVS) was trading around $85.47 on Monday with a price-sales ratio of 0.42 and a price-earnings ratio of 15.24.

The company, which provides integrated healthcare services, has a market cap of $112.53 billion. The stock has risen at an annualized rate of 10.44% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $82.95, suggesting it is overpriced by 3.04%.

The company's largest guru shareholder is Dodge & Cox with 1.23% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 0.51% and PRIMECAP Management (Trades, Portfolio) with 0.34%.

Lockheed Martin

Lockheed Martin Corp. (LMT) was trading around $387.72 with a price-sales ratio of 1.65 and a price-book ratio of 15.65.

The defense contractor has a market cap of $107.76 billion. The stock has risen at an annualized rate of 19.43% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $583.90, suggesting it is undervalued with a 33.60% margin of safety.

With a 0.20% stake, Simons’ firm is the company's largest guru shareholder, followed by Yacktman Asset Management (Trades, Portfolio) with 0.14% and Catherine Wood (Trades, Portfolio) with 0.10%.

Deere

Deere & Co. (DE) shares were trading around $341.57 with a price-sales ratio of 2.73.

The company, which manufactures agricultural equipment, has a $106.55 billion market cap. The share price has risen at an annualized rate of 16.16% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $214.16, suggesting it is overpriced by 59.49%.

The company's largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 0.53%% of outstanding shares followed by First Eagle Investment (Trades, Portfolio) with 0.49% and Tom Gayner (Trades, Portfolio) with 0.24%.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure