5 Cheap Stocks With Low Price-Sales Ratios

AT&T, Alliance Resource Partners on the list

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Aug 02, 2018
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According to the GuruFocus All-in-One Screener, the following stocks with market caps over $5 billion look cheap since they are trading with low price-sales ratios.

Royal Philips NV ADR (PHG) is trading around $43.8 per share with a price-sales ratio of 2.02, a price-earnings ratio of 24.09 and a forward price-earnings ratio of 21.83. The company has a market cap of $40.87 billion and the stock price has risen at an annualized rate of 5.2% over the last 10 years.

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The company is a provider of various services in the area of personal health. The discounted cash flow calculator gives the stock a fair value of $10.82 per share, suggesting it is overpriced by 305%. The Peter Lynch earnings line also suggests the stock is overpriced, giving a fair value of $13.96.

Hotchkis & Wiley is the largest shareholder among the gurus with 1.06% of outstanding shares followed by Jim Simons (Trades, Portfolio) with 0.05% and Eaton Vance Worldwide Health Sciences Fund (Trades, Portfolio) with 0.04%.

Tootsie Roll Industries Inc. (TR) is trading around $29.25 per share with a price-sales ratio of 3.67 and a price-earnings ratio of 23.77. The company has a market cap of $2.03 billion and the stock price has risen at an annualized rate of 5.0% over the past decade.

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The company manufactures candy products. The discounted cash flow calculator gives the stock a fair value of $14.9 per share, suggesting it is overpriced by 96%. The Peter Lynch earnings line gives the stock a fair value of $18.76.

The largest shareholder of the company among the gurus is Mario Gabelli (Trades, Portfolio) with 2.7% of outstanding shares followed by Chuck Royce (Trades, Portfolio) with 2.63% and Simons with 0.6%.

Astec Industries Inc. (ASTE) is trading around $46.62 per share with a price-sales ratio of 0.90 and a forward price-earnings ratio of 15.43. The company has a market cap of $1.08 billion and the stock price has risen at an annualized rate of 5.1% over the last 10 years.

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The company manufacturers equipment and components used in road building, utility and related construction activities.

Gabelli is the largest shareholder among the gurus with 5.31% of outstanding shares followed by Royce with 1.36% and Hotchkis & Wiley with 0.03%.

Alliance Resource Partners LP (ARLP) is trading around $20 per share with a price-sales ratio of 1.34, a price-earnings ratio of 7.14 and a forward price-earnings ratio of 5.88. The company has a market cap of $2.63 billion and the stock price has risen at an annualized rate of 5.1% over the past decade.

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The company produces coal in the U.S. The discounted cash flow calculator gives the stock a fair value of $36.06 suggesting it is undervalued with a 45% margin of safety. The Peter Lynch earnings line also suggests the stock is undervalued, giving it a fair value of $44.70.

The largest shareholder of the company among the gurus is Simons with 0.07% of outstanding shares.

AT&T Inc. (T) is trading around $31.9 per share with a price-sales ratio of 1.25, a price-earnings ratio of 6.23 and a forward price-earnings ratio of 9.15. The company has a market cap of $231.63 billion and the stock price has risen at an annualized rate of 5.1% over the last 10 years.

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The company operates in the provision of communications and digital entertainment service. The discounted cash flow calculator gives the stock a fair value of $54.79 suggesting it is undervalued with a 42% margin of safety.

The largest shareholder of the company among the gurus is Pioneer Investments (Trades, Portfolio) with 0.21% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 0.15% and Steven Cohen (Trades, Portfolio) with 0.04%.

SCANA Corp. (SCG) is trading around $40.28 per share with a price-sales ratio of 1.30 and a forward price-earnings ratio of 13.28. The company has a market cap of $5.76 billion and the stock price has risen at an annualized rate of 5.2% over the past decade.

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The company sells electricity and purchases, sells and transports natural gas.

Pioneer Investments (Trades, Portfolio) is the largest shareholder among the gurus with 0.09% of outstanding shares followed by Prem Watsa (Trades, Portfolio) with 0.02%.

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