The following stocks have low price-earnings ratios and have been bought by gurus. While some of them are great investments, others need to be checked again, according to the discounted cash flow calculator.
With a market cap of $2.28 billion, TopBuild Corp. (BLD, Financial) is trading with a price-earnings ratio of 12.13, a price-sales ratio of 1.1 and a forward price-earnings ratio of 12.33. According to the discounted cash flow calculator, the stock has a fair value of $56.29 while trading at $53.42. The stock price has increased 2% over the last 12 months and is currently 28.92% below its 52-week high and 5.57% above its 52-week low.
GuruFocus gives the distributor of insulation products and building materials a profitability and growth rating of 7 out of 10. The return on equity of 19.32% and return on assets of 10.13% are outperforming 85% of companies in the Global Building Materials industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.09 is below the industry median of 0.37.
The company’s largest shareholder among the gurus is Chuck Royce (Trades, Portfolio) with 0.16% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.12% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.09%.
With a $71.23 billion market cap, Bank of Nova Scotia (BNS, Financial) is trading with a price-earnings ratio of 11.25, a price-sales ratio of 3.34 and a forward price-earnings ratio of 10.11. According to the DCF calculator, the stock has a fair value of $64.58 while trading at $58.37. The stock price has fallen 7% over the last 12 months and is currently 12.59% below its 52-week high and 4.51% above its 52-week low.
GuruFocus gives the international bank a profitability and growth rating of 4 out of 10. The return on equity of 13.61% and return on assets of 0.91% are outperforming 53% of companies in the Global Banks - Global industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 9.12 is above the industry median of 1.22.
Pioneer Investments (Trades, Portfolio) is the company’s largest shareholder among the gurus with 0.18% of outstanding shares, followed by Simons with 0.16% and Ray Dalio (Trades, Portfolio)'s Bridgewater Associates with 0.04%.
With a market cap of $52.21 billion, Bank of Montreal (BMO, Financial) is trading with a price-earnings ratio of 14.42, a price-sales ratio of 3.12 and a forward price-earnings ratio of 11.36. According to the DCF calculator, the stock has a fair value of $77.22 while trading at $83. The stock price has increased 9% over the last 12 months and is currently 3.26% below its 52-week high and 11.06% above its 52-week low.
GuruFocus gives the company, which provides diversified financial services, a profitability and growth rating of 4 out of 10. While the return on equity of 11.17% is outperforming the sector, the return on assets of 0.68% is underperforming 52% of companies in the Global Banks industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 8.67 is above the industry median of 1.22.
The company’s largest shareholder among the gurus is Simons with 0.14% of outstanding shares, followed by Pioneer Investments with 0.06% and Jeremy Grantham (Trades, Portfolio) with 0.05%.
OGE Energy Corp. (OGE, Financial) has a market cap of $7.3 billion; the stock is trading with a price-earnings ratio of 11.34, a price-sales ratio of 3.27 and a forward price-earnings ratio of 17.92. According to the DCF calculator, the stock has a fair value of $36.5 while trading at $37.31. The stock price has risen 3% over the last 12 months and is currently 1.15% below its 52-week high and 26.09% above its 52-week low.
GuruFocus gives the energy services provider a profitability and growth rating of 5 out of 10. The return on equity of 17.22% and return on assets of 6.16% are outperforming 80% of companies in the Global Utilities - Regulated Electric industry. Its financial strength is rated 4 out of 10.
Simons is the company’s largest guru shareholder with 0.96% of outstanding shares, followed by Pioneer Investments with 0.82% and Dalio with 0.01%.
Spectrum Brands Holdings Inc. (SPB, Financial) has a market cap of $4.39 billion. It is trading with a price-earnings ratio of 3.27 and a price-sales ratio of 0.51. According to the DCF calculator, the stock has a fair value of $143.25 while trading at $82. The stock price has fallen 15% over a 12-month period and is currently 31.47% below its 52-week high and 39.60% above its 52-week low.
GuruFocus gives the consumer products company a profitability and growth rating of 5 out of 10. The return on equity of 128.63% and return on assets of 4.23% are outperforming 53% of companies in the Global Home Furnishings and Fixtures industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.16 is below the industry median of 1.05.
The company’s largest shareholder among the gurus is Leucadia National (Trades, Portfolio) with 13.99% of outstanding shares, followed by Grantham with 0.93%, Leon Cooperman (Trades, Portfolio) with 0.68% and Bruce Berkowitz (Trades, Portfolio) with 0.47%.
Disclosure: I do not own any stocks mentioned in this article.
