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Tiziano Frateschi
Tiziano Frateschi
Articles (1725)  | Author's Website |

6 Stocks With Low Price-Sales Ratios

Sprint tops the list

October 16, 2018 | About:

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.

Sprint Corp. (NYSE:S) shares are trading around $6.41 with a price-sales ratio of 0.80 and a price-earnings ratio of 3.54. The company, which supplies wireless and wireline communications products, has a market cap of $26.08 billion. The stock has risen at an annualized rate of 6% over the last 10 years.

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The discounted cash flow calculator gives the stock a fair value of $19.37, suggesting it is undervalued with a 67% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $27.30.

Dodge & Cox is the company's largest shareholder among the gurus with 4.07% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.9% and Mario Gabelli (Trades, Portfolio) with 0.04%.

Pearson PLC (NYSE:PSO) shares are trading around $10.25 with a price-sales ratio of 1.40, a forward price-earnings ratio of 13.25 and a price-earnings ratio of 10.24. The company, which provides educational services, has a market cap of $8.21 billion. The stock price has risen at an annualized rate of 6.1% over the past decade.

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The DCF calculator gives the company a fair value of $10.89, suggesting it is undervalued with a 9% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $10.05.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.08% of outstanding shares.

Newell Brands Inc. (NYSE:NWL) shares are trading around $17.52 with a price-sales ratio of 0.68, a price-earnings ratio of 4.13 and a forward price-earnings ratio of 8.22. The company, manufactures household products, has a market cap of $8.5 billion. The stock has risen at an annualized rate of 6.1% over the last 10 years.

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The DCF calculator gives the stock a fair value of $40.77, suggesting it is undervalued with a 57% of margin of safety. The Peter Lynch earnings line gives the stock a fair value of $6.

The largest guru shareholder of the company is Carl Icahn (Trades, Portfolio) with 8.11% of outstanding shares, followed by Larry Robbins (Trades, Portfolio) with 4.23%, Richard Pzena (Trades, Portfolio) with 3.51% and PRIMECAP Management with 0.84%.

Legg Mason Inc. (NYSE:LM) shares are trading around $29 with a price-sales ratio of 0.83, a price-earnings ratio of 8.84 and a forward price-earnings ratio of 8.26. The investment management company has a market cap of $2.46 billion. The stock has risen at an annualized rate of 6.2% over the past decade.

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The stock has a fair value of $34.89 according to the DCF calculator, suggesting it is undervalued with a 17% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $45.45.

The largest guru shareholder of the company is Gabelli with 2.47% of outstanding shares, followed by Pzena with 0.75%, Robert Olstein (Trades, Portfolio) with 0.43% and Ken Fisher (Trades, Portfolio) with 0.23%.

Franklin Resources Inc. (NYSE:BEN) shares are trading around $29 with a price-sales ratio of 2.43, a price-earnings ratio of 23.20 and a forward price-earnings ratio of 9.75. The investment management company has a market cap of $15.04 billion. The stock has risen at an annualized rate of 6.3% over the last 10 years.

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The DCF calculator gives the stock a fair value of $14.12, suggesting it is overpriced by 102%. The Peter Lynch earnings line gives the stock a fair value of $18.15.

The company's largest guru shareholder is Pzena with 2% of outstanding shares, followed by the T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.01%, Diamond Hill Capital (Trades, Portfolio) with 0.74% and Mason Hawkins (Trades, Portfolio) with 0.3%.

Sealed Air Corp. (NYSE:SEE) shares are trading around $35 with a price-sales ratio of 1.29, a forward price-earnings ratio of 12.21 and a price-earnings ratio of 9.77. The packaging company has a market cap of $5.52 billion. The stock has risen at an annualized rate of 6.3% over the past decade.

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With 1.08% of outstanding shares, Pioneer Investments (Trades, Portfolio) has the largest position in Sealed Air, followed by Joel Greenblatt (Trades, Portfolio) with 0.11%, Paul Tudor Jones (Trades, Portfolio) with 0.06% and Gabelli with 0.05%.

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

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About the author:

Tiziano Frateschi
You can read about me on this blog: www.theextraincome.info

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