According to GuruFocus' All-in-One Screener, the following stocks with market caps above $5 billion look cheap since they are trading with a very low price-sales (P/S) ratio.
CAE Inc. (CAE, Financial) is trading at about $14 with a P/S ratio of 1.94, a trailing 12-month price-earnings (P/E) multiple of 22.18 and an estimated forward P/E multiple of 17.38. The company has a market cap of $3.77 billion and the stock has risen at an annualized rate of 5% over the last 10 years.
The DCF model gives the stock a fair value of $7.76, suggesting it is overpriced by 81% at current prices. The Peter Lynch earnings line suggests the stock is fairly priced.
The company and its subsidiaries design, manufacture and supply simulation equipment. It provides training and develops integrated training solutions for defense and security markets, commercial airlines, business aircraft operators and helicopter operators.
Columbia Wanger (Trades, Portfolio) is the largest shareholder among the gurus with 1% of outstanding shares followed by Jim Simons (Trades, Portfolio) with 0.22%.
Sealed Air Corp.Ă‚ (SEE, Financial) is trading at about $47 with a P/S ratio of 1.37, a trailing 12-month P/E multiple of 21.93 and an estimated forward P/E multiple of 15.80. The company has a market cap of $9.12 billion and the stock has risen at an annualized rate of 5% over the last 10 years.
The DCF model gives the stock a fair value of $23.01, suggesting it is overpriced by 105%. The Peter Lynch earnings line gives a fair price of $32.1.
The company operates in food and beverage processing, retail, health care and industrial, and commercial and consumer applications.
The largest shareholder of the company among the gurus is Andreas Halvorsen (Trades, Portfolio) with 2.25% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 1.53%, RS Investment Management (Trades, Portfolio) with 1.5% and Pioneer Investments (Trades, Portfolio) with 0.69%.
Rockwell Collins Inc. (COL, Financial) is trading at about $93 with a P/S ratio of 2.31, a trailing 12-month P/E multiple of 18.86 and an estimated forward P/E multiple of 17.04. The company has a market cap of $12.14 billion and the stock has risen at an annualized rate of 5% over the last 10 years.
The DCF model gives a fair value of $60.87, suggesting the stock is overpriced by 53% at current prices. The Peter Lynch earnings line gives a fair price of $82.7.
The company designs, produces and supports communications and aviation systems for commercial and military customers and provides information management services through voice and data communication networks and solutions.
Hotchkis & Wiley is the largest shareholder among the gurus with 1.45% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 0.46% and Simons with 0.24%.
CoreLogic Inc.Ă‚ (CLGX, Financial) is trading at about $37 with a P/S ratio of 1.76, a trailing 12-month P/E multiple of 23.56 and an estimated forward P/E multiple of 17.67. The company has a market cap of $3.17 billion and the stock has risen at an annualized rate of 5.1% over the last 10 years.
The DCF model gives a fair value of $16.91, suggesting the stock is overpriced by 117% at current prices. The Peter Lynch earnings line suggests a fair price of $23.7.
The company is a provider of property, financial and consumer information, analytics and services to mortgage originators and servicers, financial institutions and other businesses and government-sponsored enterprises..
The largest shareholder of the company among the gurus is Ken Fisher (Trades, Portfolio) with 2.14% of outstanding shares followed by Columbia Wanger with 1.49%.
National Healthcare Corp. (NHC, Financial) is trading at about $75 with a P/S ratio of 1.23, a trailing 12-month P/E multiple of 22.01 and an estimated forward P/E multiple of 22.01 The company has a market cap of $1.14 billion and the stock has risen at an annualized rate of 5.1% over the last 10 years.
The DCF model gives a fair value of $69.77, indicating the stock is overpriced by 8% at current prices. The Peter Lynch earnings line suggests a fair price of $51.1.
The company operates skilled nursing facilities with associated assisted living and independent living centers. It provides sub-acute and post-acute skilled nursing care, senior living and home health care services.
The largest shareholder of the company among the gurus is Simons with 1.98% of outstanding shares.
Washington Federal Inc. (WAFD, Financial) is trading at about $34 with a P/S ratio of 6.72, a trailing 12-month P/E multiple of 19.15 and an estimated forward P/E multiple of 18.45. The company has a market cap of $3.04 billion and the stock has risen at an annualized rate of 5.1% over the last 10 years.
The DCF model gives a fair value of $19.29, indicating the stock is overpriced by 77% at current prices. The Peter Lynch earnings line gives a fair price of $26.7.
Washington Federal is a bank holding company operating through its subsidiaries. Its activities include accepting deposits and lending out loans of various types. The bank is also engaged in real estate investment and insurance brokerage activities.
Hotchkis & Wiley is the largest shareholder among the gurus with 0.57% of outstanding shares, followed by Simons with 0.51%, Chuck Royce (Trades, Portfolio) with 0.06% and Jeff Auxier (Trades, Portfolio) with 0.03%.
Emerson Electric Co.Ă‚ (EMR, Financial) is trading at about $56 with a P/S ratio of 1.97, a trailing 12-month P/E multiple of 22.40 and an estimated forward P/E multiple of 23.20. The company has a market cap of $36.35 billion and the stock has risen at an annualized rate of 5.1% over the last 10 years.
The DCF model gives a fair value of $27.61, indicating the stock is overpriced by 104% at current prices. The Peter Lynch earnings line suggests a fair value of $38.7.
The company is engaged in designing and supplying products and technology and delivering engineering services and solutions to industrial, commercial and consumer markets.
T Rowe Price Equity Income Fund (Trades, Portfolio) is the largest shareholder among the gurus with 0.66% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.65%, Charles Brandes (Trades, Portfolio) with 0.4%, Mairs and Power (Trades, Portfolio) with 0.34% and Tweedy Browne (Trades, Portfolio) with 0.26%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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