6 Low Price-Sales Stocks in Gurus' Portfolios

TransCanada, ACCO Brands on the list

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Jul 11, 2018
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According to the GuruFocus All-in-One Screener, the following stocks with market caps above $5 billion look cheap since they are trading with low price-sales ratios.

TransCanada Corp. (TRP) is trading around $43.39 per share with a price-sales ratio of 3.74, a price-earnings ratio of 16.22 and a forward price-earnings ratio of 17.06. The company has a market cap of $38.92 billion and the stock price has risen at an annualized rate of 5.2% over the last 10 years.

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It is an energy infrastructure company. The discounted cash flow calculator gives a fair value of $29.31 per share, suggesting the stock is overpriced by 48%. The Peter Lynch earnings line also suggests the stock is overpriced, giving a fair value of $39.75 per share.

T Rowe Price Equity Income Fund (Trades, Portfolio) is the largest shareholder among the gurus with 0.4% of outstanding shares followed by Jim Simons (Trades, Portfolio) with 0.11% and Pioneer Investments (Trades, Portfolio) with 0.05%.

Brandywine Realty Trust (BDN) is trading around $17.01 per share with a price-sales ratio of 5.75 and a price-earnings ratio of 21.53. The company has a market cap of $3.04 billion and the stock price has risen at an annualized rate of 5.2% over the past decade.

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The company provides leasing, property management and other tenant-related services. The discounted cash flow calculator gives the stock a fair value of $8.45, suggesting it is overpriced by 101% at current prices. The Peter Lynch earnings line gives the stock a fair value of $9.75 per share.

The largest shareholder of the company among the gurus is Simons with 1.54% of outstanding shares followed by NWQ Managers (Trades, Portfolio) with 1.11% and Chris Davis (Trades, Portfolio) with 0.27%.

Herman Miller Inc. (MLHR) is trading around $38.1 per share with a price-sales ratio of 0.96, a price-earnings ratio of 17.97 and a forward price-earnings ratio of 13.46. The company has a market cap of $2.27 billion and the stock price has risen at an annualized rate of 5.3% over the last 10 years.

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The company research, design, manufactures interior furnishings. The discounted cash flow calculator gives the stock a fair value of $22.69 per share, suggesting it is overpriced by 68%. The Peter Lynch earnings line also suggests the stock is overpriced, giving a fair value of $32.10.

Chuck Royce (Trades, Portfolio) is the largest shareholder among the gurus with 3.44% of outstanding shares followed by Tom Russo (Trades, Portfolio) with 0.33% and Jeremy Grantham (Trades, Portfolio) with 0.18%.

Principal Financial Group Inc. (PFG) is trading around $55.19 per share with a price-sales ratio of 1.16, a price-earnings ratio of 6.86 and a forward price-earnings ratio of 10.03. The company has a market cap of $15.81 billion and the stock price has risen at an annualized rate of 5.3% over the past decade.

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The company provides financial products and services. The discounted cash flow calculator gives the stock a fair value of $137.78 per share suggesting it is undervalued with a 60% margin of safety. The Peter Lynch earnings line also suggests the stock is undervalued, giving a fair value of $118.05

The largest shareholder of the company among the gurus is Mairs and Power (Trades, Portfolio) with 0.9% of outstanding shares followed by Pioneer Investments (Trades, Portfolio) with 0.17% and Grantham with 0.07%.

ACCO Brands Corp. (ACCO) is trading around $14.3 per share with a price-sales ratio of 0.79, a price-earnings ratio of 11.42 and a forward price-earnings ratio of 10.45. The company has a market cap of $1.53 billion and the stock price has risen at an annualized rate of 5.3% over the last 10 years.

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The company manufactures and markets selected computer and electronic accessories. The discounted cash flow calculator gives the stock a fair value of $13.38 per share suggesting it is overpriced by 7% at current prices.

The largest shareholder of the company among the gurus is Simons with 0.83% of outstanding shares followed by Richard Snow (Trades, Portfolio) with 0.3% and Barrow, Hanley, Mewhinney & Strauss with 0.28%.

John Wiley & Sons Inc. Class A (JW.A) is trading around $64.65 per share with a price-sales ratio of 2.09, a price-earnings ratio of 19.50 and a forward price-earnings ratio of 18.15. The company has a market cap of $3.72 billion and the stock price has risen at an annualized rate of 5.3% over the past decade.

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The company provides academic journals, books, test preparation, and online education solutions. The discounted cash flow calculator gives the stock a fair value of $35.53 per share, suggesting it is overpriced by 82% at current prices. The Peter Lynch earnings line also suggests the stock is overpriced, giving a fair value of $47.85.

Pioneer Investments (Trades, Portfolio) is the largest shareholder among the gurus with 0.28% of outstanding shares followed by Grantham with 0.05% and Joel Greenblatt (Trades, Portfolio) with 0.03%.

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