>
  1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Tiziano Frateschi
Tiziano Frateschi
Articles (2803)  | Author's Website |

8 Cheap Stocks With Low P/E Ratios

Some of these companies are markedly undervalued

Here are eight stocks gurus are buying that are trading with low price-earnings (P/E) ratios. Most of them are greatly undervalued, according to the DCF calculator.

Assured Guaranty Ltd. (AGO) with a market cap of $5.09 billion is trading with a P/E ratio of 4.9 and a price-sales (P/S) ratio of 2.75. According to the DCF calculator the stock has a fair value of $86.36 while trading at about $39 with a margin of safety of 55%. The price has risen 61% during the last 12 months and is now 1.14% below its 52-week high and 79.26% above its 52-week low.

The company through its operating subsidiaries provides credit protection products to the U.S. and international public finance including infrastructure and structured finance markets.

Two hedge funds hold the company. The gurus holding the largest portions of outstanding shares are Jeremy Grantham (Trades, Portfolio) with 0.99% followed by Chuck Royce (Trades, Portfolio) with 0.52%.

Mobile TeleSystems PJSC ADR (MBT) with a market cap of $10.4 billion is trading with a P/E ratio of 13.9 and a P/S ratio of 1.38. According to the DCF calculator the stock has a fair value of $8.1 while trading at about $10 overpriced by 67%. The price has risen by 38% during the last 12 months and is now 1.66% below its 52-week high and 95.53% above its 52-week low.

The company 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 hold the company. The gurus holding the largest portions of outstanding shares are Grantham with 1.9% and Jim Simons (Trades, Portfolio) with 0.88%.

GameStop Corp. Class A (GME) with a market cap of $2.52 billion is trading with a P/E ratio of 6.1 and a P/S ratio of 0.29. According to the DCF calculator the stock has a fair value of $39.81 while trading at about $24.72 with a margin of safety of 38%. The price has dropped by 8% during the last 12 months and is now 26.69% below its 52-week high and 22.99% above its 52-week low.

It is a multichannel video game retailer. It sells new and preowned video game hardware, physical and digital video game software, accessories as well as PC entertainment software, new and preowned mobile and consumer electronics products.

Two hedge funds hold the company. The gurus with the largest portions of outstanding shares are NWQ Managers (Trades, Portfolio) with 1.93% and Simons with 0.86%.

Tegna Inc. (TGNA) with a market cap of $4.65 billion is trading with a P/E ratio of 10.8 and a P/S ratio of 1.44. According to the DCF calculator the stock has a fair value of $22.47 while trading at about $22 with a 3% margin of safety. The price has dropped by 11% during the last 12 months and is now 14.46% below its 52-week high and 21.22% above its 52-week low.

It is an international media and marketing solutions company and diverse local content providers in the U.S. It operates in segments including Broadcasting and Digital.

Two hedge funds hold the company. The gurus holding the largest portions of outstanding shares are Diamond Hill Capital (Trades, Portfolio) with 4.24% and John Rogers (Trades, Portfolio) with 2.89%.

Companhia De Saneamento Basico Do Estado De Sao Paulo SA (SBS) with a market cap of $6.66 billion is trading with a P/E ratio of 8.78 and a P/S ratio of 1.61. According to the DCF calculator the stock has a fair value of $10.93 while trading at about $9.79 with a margin of safety of 11%. The price has risen by 122% during the last 12 months and is now 7.68% below its 52-week high and 130.26% above its 52-week low.

The company provides water and sewage services to residential, commercial, industrial and governmental customers. It also supplies water on a wholesale basis and provides related consulting services.

Two hedge funds hold the company. The gurus holding the largest portions of outstanding shares are Simons with 0.35% and RS Investment Management (Trades, Portfolio) with 0.06%.

USG Corp. (USG) with a market cap of $4.3 billion is trading with a P/E ratio of 4.26 and a P/S ratio of 0.99. According to the DCF calculator the stock has a fair value of $74.91 while trading at about $28.8 undervalued with a 62% margin of safety. The price has risen by 45% during the last 12 months and is now 10.73% below its 52-week high and 81.70% above its 52-week low.

The company through its subsidiaries is engaged in manufacturing and distribution of building materials. Its products are used in new residential, new nonresidential and residential and nonresidential repair and remodel construction.

Two hedge funds hold the company. The gurus holding the largest portions of outstanding shares are Warren Buffett (Trades, Portfolio) with 26.7% and Joel Greenblatt (Trades, Portfolio) with 0.42%.

AmTrust Financial Services Inc. (AFSI) with a market cap of $4.67 billion is trading with a P/E ratio of 11.71 and a P/S ratio of 0.89. According to the DCF calculator the stock has a fair value of $65.76 while trading at about $27, undervalued with a margin of safety of 59%. The price has dropped by 1% during the last 12 months and is now 7.34% below its 52-week high and 14.73% above its 52-week low.

The company through its subsidiaries provides specialty property and casualty insurance, specialty risk and extended warranty coverage. It also provides reinsurance for personal and commercial automotive business.

Two hedge funds hold the company. The gurus with the largest portions of outstanding shares are RS Investment Management with 0.57% and Simons with 0.32%.

Hawaiian Electric Industries Inc. (HE) with a market cap of $3.63 billion is trading with a P/E ratio of 14.71 and a P/S ratio of 1.52. According to the DCF calculator the stock has a fair value of $24.29 while trading at about $33.50 overpriced by 38%. The price has risen by 21% during the last 12 months and is now 4.26% below its 52-week high and 22.67% above its 52-week low.

The company through its subsidiaries is engaged in the electric utility and banking businesses operating in Hawaii.

Two hedge funds hold the company. The gurus holding the largest portions of outstanding shares are Meridian Funds (Trades, Portfolio) with 0.66% and Simons with 0.57%.

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

Start a free seven-day trial of Premium Membership to GuruFocus.

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


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Tiziano Frateschi


User Generated Screeners


pjmason14Momentum
wigbertHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)