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Tiziano Frateschi
Tiziano Frateschi
Articles (2004)  | Author's Website |

Low P/S Ratios for DaVita, ConAgra Foods

Gurus have been snapping up these stocks

According to GuruFocus' All-in-One Screener, the following are companies with market caps above $5 billion that are trading with low P/S ratios.

DaVita HealthCare Partners Inc. (DVA) is trading at about $77 with a P/S ratio of 1.2 and an estimated P/E multiple of 34.84. The company has a market cap of $15.97 billion; over the last 10 years, the stock has risen by 201%. During the last 52 weeks, the price has been as high as $84.40 and as low as $61.36.

The company operates kidney dialysis centers and provides related lab services mainly in dialysis centers and in contracted hospitals across the U.S. It also operates other ancillary services and strategic initiatives.

The DCF model gives a fair value of $38.04 making the stock overpriced by 103%. The Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of $33.3.

The company’s largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 18.58% of outstanding shares followed by Manning & Napier Advisors Inc. with 0.93%, Andreas Halvorsen (Trades, Portfolio) with 0.84%, Jim Simons (Trades, Portfolio) with 0.53%, Joel Greenblatt (Trades, Portfolio) with 0.25% and Arnold Van Den Berg (Trades, Portfolio) with 0.16%.

Eastman Chemical Co. (EMN) is trading at about $73 with a P/S ratio of 1.2 and an estimated P/E multiple 0.92. The company has a market cap of $10.94 billion; over the last 10 years, the stock has risen by 161%. During the last 52 weeks, the price has been as high as $52.47 and as low as $25.72.

It is a specialty chemical company that manufactures and sells a portfolio of chemicals, plastics and fibers. It has 11 manufacturing sites in seven countries that supply chemicals, plastics and fiber products to customers.

The DCF model gives a fair value of $109.96 making the stock undervalued with a margin of safety of 33%. The Peter Lynch earnings line suggests the stock is less undervalued, giving a fair price of $93.2.

The company’s largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with 1.57% of outstanding shares followed by Diamond Hill Capital (Trades, Portfolio) with 0.64%, Leon Cooperman (Trades, Portfolio) with 0.55%, RS Investment Management (Trades, Portfolio) with 0.12%, Greenblatt with 0.07% and Signature Select Canadian Fund (Trades, Portfolio) with 0.05%.

Entergy Corp. (ETR) is trading at about $75 with a P/S ratio of 1.19 and an estimated forward P/B multiple of 1.42. The company has a market cap of $13.24 billion; over the last 10 years, the stock has risen by 6%. During the last 52 weeks, the price has been as high as $80.06 and as low as $61.27.

The company is engaged in electric power production and retail electric distribution operations.

The company’s largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 5.68% of outstanding shares followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.9%, Simons with 1.4%, Richard Pzena (Trades, Portfolio) with 0.45%, Pioneer Investments (Trades, Portfolio) with 0.16% and John Buckingham (Trades, Portfolio) with 0.03%.

Marriott International Inc. (MAR) is trading at about $66 with a P/S ratio of 1.19 and an estimated P/E multiple of 19.95. The company has a market cap of $16.6 billion; over the last 10 years, the stock has risen by 92%. During the last 52 weeks, the price has been as high as $82.23 and as low as $56.43.

The company is an operator, franchiser and licenser of hotels and timeshare properties under different brand names. It also operates and develops residential properties and provides services to home/condominium owner associations.

The DCF model gives a fair value of $35.21 making the stock overpriced by 85%. The Peter Lynch earnings line suggests the stock is more overpriced, giving a fair price of $49.4.

Spiros Segalas (Trades, Portfolio) is the largest shareholder among the gurus with 2.35% of outstanding shares followed by Tom Gayner (Trades, Portfolio) with 0.57%, PRIMECAP Management (Trades, Portfolio) with 0.12%, Simons with 0.06%, Ray Dalio (Trades, Portfolio) with 0.05% and Greenblatt with 0.03%.

LyondellBasell Industries NV. (LYB) is trading at about $81 with a P/S ratio of 1.18 and an estimated P/E multiple 4.89. The company has a market cap of $34.33 billion; over the last 10 years, the stock has risen by 368%. During the last 52 weeks, the price has been as high as $106.50 and as low as $69.10.

The company produces polypropylene and polypropylene compounds, propylene oxide, polyethylene, ethylene and propylene. It also provides technology licenses.

The DCF model gives a fair value of $101.67 making the stock undervalued with a margin of safety of 19%. The Peter Lynch earnings line suggests the stock is more undervalued giving a fair price of $142.5.

The company’s largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with 0.37% of outstanding shares followed by Pioneer Investments (Trades, Portfolio) with 0.25%, Grantham with 0.19%, Barrow, Hanley, Mewhinney & Strauss with 0.15%, RS Investment Management (Trades, Portfolio) with 0.08%, Halvorsen with 0.07%, Steven Cohen (Trades, Portfolio) with 0.02%, PRIMECAP Management (Trades, Portfolio) with 0.02% and Dalio with 0.02%.

ConAgra Foods Inc. (CAG) is trading at about $45 with a P/S ratio of 1.21 and an estimated P/B multiple of 5.53. The company has a market cap of $19.48 billion; over the last 10 years, the stock has risen by 97%. During the last 52 weeks, the price has been as high as $46.64 and as low as $37.25.

The company sells its products through grocery, convenience, mass merchandise, club and drug stores.

Jana Partners (Trades, Portfolio) is the company's largest shareholder among the gurus with 4.94% of outstanding shares followed by Simons with 0.32%, Mario Gabelli (Trades, Portfolio) with 0.21%, Paul Tudor Jones (Trades, Portfolio) with 0.06%, Pioneer Investments (Trades, Portfolio) with 0.05%, Cohen with 0.04%, Jeff Auxier (Trades, Portfolio) with 0.02% and John Keeley (Trades, Portfolio) with 0.01%.

Dollar General Corp. (DG) is trading at about $89 with a P/S ratio of 1.22 and an estimated P/E multiple of 21.09. The company has a market cap of $23.85 billion; over the last 10 years, the stock has risen by 266%. During the last 52 weeks, the price has been as high as $87.42 and as low as $59.75.

The company is a discount retailer in the U.S. that offers a selection of merchandise, including consumables, seasonal, home products and apparel.

The DCF model gives a fair value of $42.27 making the stock overpriced by 97%. The Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of $59.3.

The company’s largest shareholder among the gurus is Pioneer Investments (Trades, Portfolio) with 0.77% of outstanding shares followed by RS Investment Management (Trades, Portfolio) with 0.21%, Simons with 0.14%, Grantham with 0.07%, Mario Cibelli (Trades, Portfolio) with 0.05% and Manning & Napier Advisors with 0.05%.

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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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