Gurus are buying stocks that are trading with low price-earnings (P/E) ratios. Some are undervalued, according to the DCF calculator.
CalAtlantic Group Inc. (CAA) with a market cap of $3.67 billion is trading with a P/E ratio of 12.43 and a price-sales (P/S) ratio of 0.62. According to the DCF calculator the stock has a fair value of $26.65 while trading at about $30.99; it is overpriced by 16%. The price has dropped by 22% during the last 12 months and is now 28.33% below its 52-week high and 14.91% above its 52-week low.
CalAtlantic Group, formerly Standard Pacific Corp., is engaged in the business of constructing single-family attached and detached homes with operations in the metropolitan markets in California, Florida, Arizona, Texas, the Carolinas and Colorado.
Two hedge funds hold the company. The gurus with the largest holdings are Ken Fisher (Trades, Portfolio) with 1.92% of outstanding shares and Ken Heebner (Trades, Portfolio) with 0.15%.
BankUnited Inc. (BKU) with a market cap of $3.05 billion is trading with a P/E ratio of 14.54 and a P/S ratio of 3.30. According to the DCF calculator the stock has a fair value of $21.62 while trading at about $29.26 and is overpriced by 35%. The price has risen by 11% during the last 12 months and is now 26.80% below its 52-week high and 5.06% above its 52-week low.
BankUnited is a bank holding company. The company through its subsidiaries provides personalized customer service and offers a full range of traditional banking products and services to both its commercial and retail customers.
Two hedge funds hold the company. The gurus with the largest holdings are Diamond Hill Capital (Trades, Portfolio) with 5.14% of outstanding shares and Jim Simons (Trades, Portfolio) with 0.65%.
AmTrust Financial Services Inc. (AFSI) with a market cap of $4.44 billion is trading with a P/E ratio of 9.29 and a P/S ratio of 0.88. The price is now 27.03% below its 52-week high and 10.40% above its 52-week low.
AmTrust Financial Services through its subsidiaries provides specialty property and casualty insurance, specialty risk and extended warranty coverage. The company also provides reinsurance for personal and commercial automotive businesses.
Two hedge funds hold the company. The gurus with the largest holdings are RS Investment Management (Trades, Portfolio) with 0.57% of outstanding shares and Simons with 0.31%.
China Mobile Ltd. ADRĂ‚ (CHL) with a market cap of $238.17 billion is trading with a P/E ratio of 13.91 and a P/S ratio of 2.30. The price is now 8.97% below its 52-week high and 16.04% above its 52-week low.
China Mobile provides cellular telecommunications and related services in the People's Republic of China and Hong Kong SAR. It offers voice services, voice value-added services and telecommunications network planning.
Two hedge funds hold the company. The gurus with the largest holdings are Matthews Pacific Tiger Fund (Trades, Portfolio) with 0.06% and Simons with 0.04%.
Bank of New York Mellon Corp. (BK) with a market cap of $45.56 billion is trading with a P/E ratio of 14.77 and a P/S ratio of 3.17. The price is now 2.50% below its 52-week high and 35.43% above its 52-week low.
Bank of New York Mellon is a global investment company. Its business segments are: Investment Management and Investment Services. Its other segments include credit-related services, the leasing portfolio and corporate treasury activities.
Two hedge funds hold the company. The gurus with the largest holdings are Dodge & Cox with 5.24% of outstanding shares and First Eagle Investment (Trades, Portfolio) with 2.24%.
Mobile TeleSystems PJSC ADRĂ‚ (MBT) with a market cap of $7.56 billion is trading with a P/E ratio of 10.26 and a P/S ratio of 1.02. According to the DCF calculator the stock has a fair value of $9.23 while trading at about $7 with a margin of safety of 20%. The price has dropped by 100% during the last 12 months and is now 21.86 % below its 52-week high and 43.69% above its 52-week low.
Mobile Telesystems provides telecommunications services including voice and data transmission, Internet access, pay TV, various value added services through wireless and fixed lines and sells equipment and accessories.
Two hedge funds are holding the company. The gurus with the largest holdings are Jeremy Grantham (Trades, Portfolio) with 1.51% of outstanding shares and Simons with 0.79%.
Federated Investors Inc. Class BĂ‚ (FII) with a market cap of $2.74 billion is trading with a P/E ratio of 14.57 and a P/S ratio of 2.57. The price has dropped by 100% during the last 12 months and is now 19.86% below its 52-week high and 16.56% above its 52-week low.
Federated Investors with its subsidiaries is a provider of investment management products and related financial services. It offers various products including short-term money market, equity and fixed-income investments.
Two hedge funds hold the company. The gurus with the largest holdings are Chuck Royce (Trades, Portfolio) with 5.02% of outstanding shares and Simons with 0.64%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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