6 Cheap Stocks With Low Price-Sales Ratios

John Wiley & Sons is on the list

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Oct 08, 2018
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According to the GuruFocus All-in-One Screener, the following companies with market caps over $5 billion look cheap since they are trading with low price-sales ratios.

NRG Energy Inc. (NRG) shares are trading around $37 with a price-sales ratio of 1.07 and a forward price-earnings ratio of 18.76. The company that operates in the utilities sector has a market cap of $11.11 billion and the stock price has risen at an annualized rate of 6.0% over the last 10 years.

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Jim Simons (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.84% of outstanding shares, followed by David Tepper (Trades, Portfolio) with 0.85% and Hotchkis & Wiley with 0.76%.

Equinor ASA ADR (EQNR) shares are trading around $27.66 with a price-sales ratio of 1.33, a forward price-earnings ratio of 12.25 and a price-earnings ratio of 20. The oil and gas company has a market cap of $93 billion. The stock price has risen at an annualized rate of 6% over the past decade.

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The discounted cash flow calculator gives the company, a fair value of $14.77, suggesting it is overpriced by 87%. The Peter Lynch earnings line gives the stock a fair value of $21.75.

The company's largest guru shareholder is Simons with 0.28% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.03%.

John Wiley & Sons Inc. Class B (JW.B) shares are trading around $60 with a price-sales ratio of 1.94, a price-earnings ratio of 16.66 and a forward price-earnings ratio of 17.95. The company has a market cap of $3.4 billion and the stock price has risen at an annualized rate of 6.0% over the last 10 years.

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The company is a content publisher. The discounted cash flow calculator gives the stock a fair value of $38.63, suggesting it is overpriced by 58%. The Peter Lynch earnings line gives the stock a fair value of $54.15.

Flowers Foods Inc. (FLO) shares are trading around $19 with a price-sales ratio of 1.03, a price-earnings ratio of 28.49 and a forward price-earnings ratio of 16.72. The company has a market cap of $4 billion and the stock price has risen at an annualized rate of 6.0% over the past decade.

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The company which operates in the food and beverage industry, has a fair value of $7.15 according to the discounted cash flow calculator, suggesting it is overpriced by 163%. The Peter Lynch earnings line gives the stock a fair value of $9.90.

The largest guru shareholder of the company is Diamond Hill Capital (Trades, Portfolio) with 1.64% of outstanding shares, followed by Simons with 1.03%, Mario Gabelli (Trades, Portfolio) with 0.46% and Chuck Royce (Trades, Portfolio) with 0.14%.

National Fuel Gas Co. (NFG) shares are trading around $58 with a price-sales ratio of 3.05, a price-earnings ratio of 12.28 and a forward price-earnings ratio of 16.45. The company has a market cap of $4.99 billion. The stock price has risen at an annualized rate of 6.0% over the last 10 years.

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The discounted cash flow calculator gives the diversified energy company, a fair value of $49.44, suggesting it is overpriced by 15%. The Peter Lynch earnings line suggests the stock is fairly priced, giving it a fair value of $68.70.

The company's largest guru shareholder is Gabelli with 3.14% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.58%, Simons with 0.45% and Private Capital (Trades, Portfolio) with 0.45%.

Ecopetrol SA ADR (EC) shares are trading around $26 with a price-sales ratio of 2.63, a forward price-earnings ratio of 13.64 and a price-earnings ratio of 14.58. The company has a market cap of $55.22 billion. The stock price has risen at an annualized rate of 6.0% over the past decade.

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The vertically integrated oil company has a fair value of $19.73 according to the discounted cash flow calculator, suggesting it is overpriced by 36%. The Peter Lynch earnings line gives the stock a fair value of $21.90.

The largest shareholder of the company among the gurus is Simons with 0.35% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.3%, Jeremy Grantham (Trades, Portfolio) with 0.04% and Fisher with 0.04%.

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