6 Low P/S Stocks

Suncor Energy, Callaway Golf on the list

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Dec 16, 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.

Suncor Energy Inc. (SU) shares are trading around $30 with a price-sales ratio of 1.70 and a price-earnings ratio of 13.70. The integrated energy company has a market cap of $48.94 billion. The stock has risen at an annualized rate of 6.5% over the last 10 years.

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The discounted cash flow calculator gives the stock a fair value of $24.85, suggesting it is overpriced by 23%. The Peter Lynch earnings line gives the stock a fair value of $31.65.

Dodge & Cox is the company's largest shareholder among the gurus with 2.03% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.09%, Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.07% and Ken Heebner (Trades, Portfolio) with 0.06%.

Suburban Propane Partners LP (SPH) shares are trading around $21.56 with a price-sales ratio of 1.0 and a price-earnings ratio of 17.5. The company, which distributes propane, fuel oil and refined fuels, has a market cap of $1.32 billion. The stock has risen at an annualized rate of 6.0% over the past decade.

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The DCF calculator gives the company a fair value of $13.16, suggesting it is overpriced by 61%. The Peter Lynch earnings line gives the stock a fair value of $18.45.

The company's largest guru shareholder is David Abrams (Trades, Portfolio) with 9.13% of outstanding shares, followed by Simons’ firm with 0.49% and Hotchkis & Wiley with 0.32%.

Callaway Golf Co. (ELY) shares are trading around $16.48 with a price-sales ratio of 1.31, a price-earnings ratio of 14.1 and a forward price-earnings ratio of 15.3. The manufacturer of golf clubs and related accessories has a market cap of $1.57 billion. The stock has risen at an annualized rate of 5.7% over the last 10 years.

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The DCF calculator gives the company a fair value of $12.52, suggesting it is overpriced by 33%. The Peter Lynch earnings line gives the stock a fair value of $16.50.

The company's largest guru shareholder is Simons’ firm with 1.67% of outstanding shares, followed by Mariko Gordon (Trades, Portfolio) with 1.65%, Pioneer Investments (Trades, Portfolio) with 1.01% and Chuck Royce (Trades, Portfolio) with 0.19%.

NBT Bancorp Inc. (NBTB) shares are trading around $36.17 with a price-sales ratio of 3.7, a price-earnings ratio of 15.7 and a forward price-earnings ratio of 14.0. The provider of financial services has a market cap of $1.57 billion. The stock has risen at an annualized rate of 5.5% over the past decade.

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The DCF calculator gives the company a fair value of $24.72, suggesting it is overpriced by 45%. The Peter Lynch earnings line gives the stock a fair value of $32.25.

The company's largest guru shareholder is Simons’ firm with 0.09% of outstanding shares, followed by Paul Tudor Jones (Trades, Portfolio) with 0.01%.

Brookline Bancorp Inc. (BRKL) shares are trading around $14.23 with a price-sales ratio of 4.21, a price-earnings ratio of 16.36 and a forward price-earnings ratio of 12.47. The multi-bank holding company has a market cap of $1.15 billion. The stock has risen at an annualized rate of 6.2% over the last 10 years.

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The DCF calculator gives the stock a fair value of $14.15, suggesting it is overpriced by 1%. The Peter Lynch earnings line gives the stock a fair value of $11.85.

The company's largest guru shareholder is Simons’ firm with 2.05% of outstanding shares, followed by Royce with 0.32% and Bernard Horn (Trades, Portfolio) with 0.2%.

TCF Financial Corp. (TCF) shares are trading around $20.76 with a price-sales ratio of 2.45, a forward price-earnings ratio of 10.72 and a price-earnings ratio of 11.41. The company operates in the Consumer Banking and Wholesale Banking and has a market cap of $30.46 billion. The stock has risen at an annualized rate of 6.5% over the past decade.

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The stock has a fair value of $19.48 according to the DCF calculator, suggesting it is undervalued with a 7% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $27.30.

With 0.83% of outstanding shares, Richard Pzena (Trades, Portfolio) is the company's largest guru shareholder, followed by Hotchkis & Wiley with 0.54% and Jeremy Grantham (Trades, Portfolio) with 0.04%.

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