American Airlines Among Stocks Trading With Low P/E

Most are largely undervalued

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Feb 25, 2016
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The following stocks are trading with a very low P/E ratio. Most of them are largely undervalued, according to the DCF calculator.

USG Corp. (USG) is trading with a P/E ratio of 3.00. According to the DCF calculator, the stock has a fair value of $72.13, while it is trading at about $20.22. That means it is undervalued with a margin of safety of 72%. The price has dropped by 29% during the last 12 months and is now 38.50% below its 52-week high and 27.57% above its 52-week low.

The company is a manufacturer and distributor of building materials. It produces products for use in new residential, new nonresidential and residential and nonresidential repair and remodel construction as well as products used in certain industrial processes.

Warren Buffett (Trades, Portfolio) is the company's largest shareholder among the gurus with 26.77% of outstanding shares followed by Joel Greenblatt (Trades, Portfolio) with 1.45%, Steven Cohen (Trades, Portfolio) with 0.24% and Prem Watsa (Trades, Portfolio) with 0.02%

Trinity Industries Inc. (TRN) is trading with a P/E ratio of 3.10. According to the DCF calculator, the stock has a fair value of $55.97 while it is trading at about $15.64. That means it is trading with a margin of safety of 72%. The price has dropped by 53% during the last 12 months and is now 57.90% below its 52-week high and 4.69% above its 52-week low.

The company owns businesses that provide products and services to the industrial, energy, transportation and construction sectors.

The company’s largest shareholder among the gurus is Greenblatt with 1.27% of outstanding shares followed by Diamond Hill Capital (Trades, Portfolio) with 0.9%, Chuck Royce (Trades, Portfolio) with 0.42%, Mario Gabelli (Trades, Portfolio) with 0.08%, John Buckingham (Trades, Portfolio) with 0.08% and Paul Tudor Jones (Trades, Portfolio) with 0.02%.

QEP Resources Inc. (QEP) is trading with a P/E ratio of 3.33. The price has dropped by 52% during the last 12 months and is now 57.03% below its 52-week high and 20.96% above its 52-week low.

The company is an independent natural gas and oil exploration and production company. It generates revenues from its midstream activities through a variety of agreements including fee-based gathering and processing agreements and keep-whole processing agreements.

Jim Simons (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.33% of outstanding shares followed by Mariko Gordon (Trades, Portfolio) with 0.13% and Gabelli with 0.03%.

Santander Consumer USA Holdings Inc. (SC) is trading with a P/E ratio of 3.52. According to the DCF calculator, the stock has a fair value of $25.79 while it is trading at about $10.12. That means it is trading with a margin of safety of 61%.

The price has dropped by 55% during the last 12 months and is now 62.28% below its 52-week high and 12.32% above its 52-week low.

It is a technology-driven consumer finance company providing vehicle finance and unsecured consumer lending products.

The company’s largest shareholder among the gurus is Lee Ainslie (Trades, Portfolio) with 3.94% of outstanding shares followed by HOTCHKIS & WILEY with 0.47%, Julian Robertson (Trades, Portfolio) with 0.31% and Greenblatt with 0.01%.

American Airlines Group Inc. (AAL) is trading with a P/E ratio of 3.66. According to the DCF calculator, the stock has a fair value of $120.82 while it is trading at about $40.66. That means it is undervalued by 66%. The price has dropped by 18% during the last 12 months and is now 27.46% below its 52-week high and 19.24% above its 52-week low.

The company is a holding company engaged in operation of a network air carrier through its subsidiaries American Airlines Inc. and US Airways Group Inc. (LCC, Financial).

PRIMECAP Management (Trades, Portfolio) is the company's largest shareholder among the gurus with 3.15% of outstanding shares followed by Pioneer Investments (Trades, Portfolio) with 0.61%, George Soros (Trades, Portfolio) with 0.29%, Greenblatt with 0.07%, Louis Moore Bacon (Trades, Portfolio) with 0.01%, and David Dreman (Trades, Portfolio) with 0.01%.

Voya Financial Inc. (VOYA) is trading with a P/E ratio of 3.80. According to the DCF calculator, the stock has a fair value of $81.97 while it is trading at about $28.8. That means it is trading with a margin of safety of 65%. The price has dropped by 34% during the last 12 months and is now 40.37% below its 52-week high and 11.84% above its 52-week low.

It is a private pension fund administrator. Its activities include investment and collection of its clients' contributions, management of individual capitalization accounts, provision of life and disability benefits and provision of senior pension, provide a senior pension for participants.

The company's largest shareholder among the gurus is Richard Pzena (Trades, Portfolio) with 3.43% of outstanding shares followed by David Einhorn (Trades, Portfolio) 1.69%, Pioneer Investments (Trades, Portfolio) with 1.05%, Richard Snow (Trades, Portfolio) with 0.94% and Simons with 0.28%.

Energy Company of Parana (ELP) is trading with a P/E ratio of 3.84. According to the DCF calculator, the stock has a fair value of $5.67 while it is trading at about $16.16. That means it is trading with a margin of safety of 65%. The price has dropped by 51% during the last 12 months and is now 52.87% below its 52-week high and 34.36% above its 52-week low.

The company is engaged in the generation, transmission, distribution and sale of electricity in the Brazilian State of Parana, pursuant to concessions granted by the Brazilian regulatory agency for the electricity sector, ANEEL.

Charles Brandes (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.92% of outstanding shares followed by Jeremy Grantham (Trades, Portfolio) with 0.86%.

Energy Company of Minas Gerais. (CIG.C) is trading with a P/E ratio of 3.97. According to the DCF calculator, the stock has a fair value of $14.62 while it is trading at about $1.53. That means it is trading with a margin of safety of 90%. The price has dropped by 66% during the last 12 months and is now 72.18% below its 52-week high and 41.67% above its 52-week low.

The company is engaged in the electric power transmission business, which consists of transporting electric power from the facilities where it is generated to the distribution networks for delivery to end users.

Navient Corp. (NAVI) is trading with a P/E ratio of 4.15. According to the DCF calculator, the stock has a fair value of $27.93 while it is trading at about $10.29. That means it is trading with a margin of safety of 63%. The price has dropped by 53% during the last 12 months and is now 53.23% below its 52-week high and 25.49% above its 52-week low.

The company through its subsidiaries is engaged in originating, servicing and collecting education loans. It uses "Private Education Loans" to mean education loans to students or their families that are nonfederal loans and loans not insured or guaranteed under the previously existing Federal Family Education Loan Program.

The company's largest shareholder among the gurus is James Barrow (Trades, Portfolio) with 9.62% of outstanding shares followed by Leon Cooperman (Trades, Portfolio) with 4.18%, Simons with 0.34%, Grantham with 0.09%, Jones with 0.05%, Kahn Brothers (Trades, Portfolio) with 0.05% and Ainslie with 0.04%.

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