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Tiziano Frateschi
Tiziano Frateschi
Articles (2569)  | Author's Website |

Be Aware of These Low P/S Stocks

Overpriced stocks that are trading with low price-sales ratios

According to GuruFocus' All-in-One Screener, the following are stocks with market caps above $5 billion and are trading with low price-sales (P/S) ratios.

Banco Bilbao Vizcaya Argentaria SA ADR. (NYSE:BBVA) is trading at about $6.23 with a P/S ratio of 1.21 and an estimated price-earnings (P/E) multiple of 22.56. The company has a market cap of $40.37 billion and over the last 10 years, the stock has fallen 74%. During the last 52 weeks, the price has been as high as $9.17 and as low as $5.14.

The company is an international financial group. It offers retail banking, asset management, private banking and wholesale banking.

The DCF calculator gives a fair value of $2.95, indicating the stock is overpriced by 111%. The Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of $4.2.

Credit Suisse Group AG ADR. (NYSE:CS) is trading at about $13.11 with a P/S ratio of 1.22 and an estimated forward P/E multiple of 16.13. The company has a market cap of $27.29 billion and over the last 10 years, the stock has fallen 78%. During the last 52 weeks, the price has been as high as $26.30 and as low as $10.01.

The company provides banking and financial services. It operates in two segments: Private Banking & Wealth Management and Investment Banking.

Ken Fisher (Trades, Portfolio) is the largest shareholder among the gurus with 0.5% of outstanding shares, followed by Charles Brandes (Trades, Portfolio) with 0.3%, Dodge & Cox with 0.07%, Jim Simons (Trades, Portfolio) with 0.05% and Jeff Auxier (Trades, Portfolio) with 0.01%.

LyondellBasell Industries NV. (NYSE:LYB) is trading at about $80 with a P/S ratio of 1.24 and an estimated P/E multiple of 8.83. The company has a market cap of $33.26 billion and over the last 10 years, the stock has risen 354%. During the last 52 weeks, the price has been as high as $97.20 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 Calculator gives a fair value of $99.53, indicating the stock is undervalued with a margin of safety of 20%.

The largest shareholder of the company among the gurus is Jeremy Grantham (Trades, Portfolio) with 0.36% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.27%, First Eagle Investment (Trades, Portfolio) with 0.25%, Ray Dalio (Trades, Portfolio) with 0.08%, RS Investment Management (Trades, Portfolio) with 0.08%, Pioneer Investments (Trades, Portfolio) with 0.07%, Manning & Napier Advisors Inc. with 0.02%, PRIMECAP Management (Trades, Portfolio) with 0.02% and Jim Simons (Trades, Portfolio) with 0.01%.

Caterpillar Inc. (NYSE:CAT) is trading at about $87 with a P/S ratio of 1.25 and an estimated P/E multiple of 46.33. The company has a market cap of $51.17 billion and over the last 10 years, the stock has risen 25%. During the last 52 weeks, the price has been as high as $89.87 and as low as $55.39.

The company is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. It is also a U.S. exporter.

The DCF Calculator gives a fair value of $20.23, indicating the stock is overpriced by 333%. The Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of $28.4.

Bill Gates (Trades, Portfolio) is the largest shareholder among the gurus with 1.93% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 1.11%, Bill Nygren (Trades, Portfolio) with 0.68%, Tom Gayner (Trades, Portfolio) with 0.05%, Paul Tudor Jones (Trades, Portfolio) with 0.02, John Buckingham (Trades, Portfolio) with 0.01%, Dodge & Cox with 0.01%, Manning & Napier Advisors Inc. 0.01%, Ruane Cunniff (Trades, Portfolio) with 0.01% and Mark Hillman (Trades, Portfolio) with 0.01%.

Delphi Automotive PLC. (NYSE:DLPH) is trading at about $67 with a P/S ratio of 1.25 and an estimated P/E multiple of 15.27. The company has a market cap of $18.46 billion and over the last 10 years, the stock has risen 217%. During the last 52 weeks, the price has been as high as $88.89 and as low as $55.59.

The company is engaged in the manufacturing of vehicle components. The company's business segments are Electrical/Electronic Architecture, Powertrain Systems, Electronics and Safety and Thermal Systems.

The DCF Calculator gives a fair value of $43.13, suggesting the stock is overpriced by 57%. The Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of $60.5.

The largest shareholder of the company among the gurus is Barrow, Hanley, Mewhinney & Strauss with 0.25% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.05%, RS Investment Management (Trades, Portfolio) with 0.05%, Robert Olstein (Trades, Portfolio) with 0.04%, Keeley Asset Management Corp (Trades, Portfolio) with 0.03% and Signature Select Canadian Fund (Trades, Portfolio) with 0.01%.

Nokia Oyj ADR. (NYSE:NOK) is trading at about $5 with a P/S ratio of 1.26 and an estimated P/E multiple of 16.29. The company has a market cap of $29.7 billion and over the last 10 years, the stock has dropped by 75%. During the last 52 weeks, the price has been as high as $7.63 and as low as $5.01.

Nokia is a mobile communications company and has three businesses: Networks, HERE and Technologies, and four business segments: mobile Broadband and Global Services within Networks, HERE and Technologies.

John Rogers (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 0.29% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.29%, Charles Brandes (Trades, Portfolio) with 0.17% and Francis Chou (Trades, Portfolio) with 0.06%.

Ingersoll-Rand PLC. (NYSE:IR) is trading at about $66 with a P/S ratio of 1.29 and an estimated P/E multiple 12.09. The company has a market cap of $17.01 billion and over the last 10 years, the stock has risen 100%. During the last 52 weeks, the price has been as high as $68.97 and as low as $47.08.

The company is a diversified company that provides products, services and solutions to enhance the quality and comfort of air in homes and buildings, transport and protect food and perishables, and increase industrial productivity and efficiency.

The DCF Calculator gives a fair value of $57.9, suggesting the stock is overpriced by 14%. The Peter Lynch earnings line suggests the stock is undervalued, giving a fair price of $81.2.

The largest shareholder of the company among the gurus is Pioneer Investments (Trades, Portfolio) with 0.92% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.43%, Steven Cohen (Trades, Portfolio) with 0.22%, David Tepper (Trades, Portfolio) with 0.18%, Stanley Druckenmiller (Trades, Portfolio) with 0.09%, Jim Simons (Trades, Portfolio) with 0.06%, Robert Olstein (Trades, Portfolio) with 0.03% and First Pacific Advisors (Trades, Portfolio) with 0.01%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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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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