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Tiziano Frateschi
Tiziano Frateschi
Articles (1812)  | Author's Website |

6 Low-P/E Stocks in Gurus' Portfolios

AMC Networks tops the list

December 17, 2018 | About:

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 $3.2 billion, AMC Networks Inc. (NASDAQ:AMCX) is trading with a price-earnings ratio of 6.59, a price-sales ratio of 1.16 and a forward price-earnings ratio of 6.53. According to the DCF calculator, the stock has a fair value of $91.82 while trading at $56.57. The stock price has not changed over the last 12 months and is currently 18.04% below its 52-week high and 17.75% above its 52-week low.

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GuruFocus gives the media company a profitability and growth rating of 8 out of 10. The return on equity of 306.14% and return on assets of 10.28% are outperforming 85% of companies in the Global Media - Diversified industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.18 is below the industry median of 0.82.

The company’s largest guru shareholder is Leon Cooperman (Trades, Portfolio) with 4.39% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 1.66%, Murray Stahl (Trades, Portfolio) with 0.71% and Jim Simons (Trades, Portfolio) with 0.13%.

With a $6.14 billion market cap, Arrow Electronics Inc. (NYSE:ARW) is trading with a price-earnings ratio of 11.60, a price-sales ratio of 0.21 and a forward price-earnings ratio of 7.56. According to the DCF calculator, the stock has a fair value of $64.96 while trading at $70.41. The stock price has fallen 12% over the last 12 months and is currently 19.31% below its 52-week high and 9.95% above its 52-week low.

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GuruFocus gives electronic components distributor a profitability and growth rating of 6 out of 10. While the return on equity of 10.65% is outperforming the sector, the return on assets of 3.31% is underperforming 53% of companies in the Global Electronics Distribution industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.14 is below the industry median of 1.32.

Richard Pzena (Trades, Portfolio) is the company’s largest shareholder among the gurus with 0.35% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 0.13% and the Jeremy Grantham (Trades, Portfolio) with 0.07%.

With a market cap of $3.42 billion, Associated Banc-Corp (NYSE:ASB) is trading with a price-earnings ratio of 12.19, a price-sales ratio of 2.86 and a forward price-earnings ratio of 9.72. According to the DCF calculator, the stock has a fair value of $18.9 while trading at $20.6. The stock price fell 20% over the last 12 months and is currently 29.03% below its 52-week high and 0.27% above its 52-week low.

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GuruFocus gives the bank holding company a profitability and growth rating of 4 out of 10. The return on equity of 8.05% and return on assets of 0.91% are underperforming 57% of companies in the Global Banks - Regional - U.S. industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.13 is below the industry median of 1.22.

The company’s largest shareholder among the gurus is Mairs and Power (Trades, Portfolio) with 1.52% of outstanding shares, followed by Pzena with 1.33%, Hotchkis & Wiley with 0.67%, Chuck Royce (Trades, Portfolio) with 0.25% and George Soros (Trades, Portfolio) with 0.17%.

Altice USA Inc. (NYSE:ATUS) has a market cap of $12.65 billion; the stock is trading with a price-earnings ratio of 5.85, a price-sales ratio of 1.37 and a forward price-earnings ratio of 22.32. According to the DCF calculator, the stock has a fair value of $32.32 while trading at $17.67. The stock price fell 8% over the last 12 months and is currently 29.74% below its 52-week high and 21.90% above its 52-week low.

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GuruFocus gives the company, which operates in the telecommunications, media and entertainment businesses, a profitability and growth rating of 4 out of 10. The return on equity of 48.30% and return on assets of 5.98% are outperforming 58% of companies in the Global Telecom Services industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.02 is below the industry median of 0.30.

Dodge & Cox is the company’s largest guru shareholder with 3.95% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.48% and David Einhorn (Trades, Portfolio) with 0.41%.

Bank of America Corp. (NYSE:BAC) has a market cap of $240.25 billion. It is trading with a price-earnings ratio of 11.66 and a price-sales ratio of 2.86. According to the DCF calculator, the stock has a fair value of $22.47 while trading at about $24.48 The stock price has fallen 17% over a 12-month period and is currently 8.72% below its 52-week high and 2.74% above its 52-week low.

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GuruFocus gives the financial guaranty insurance provider a profitability and growth rating of 3 out of 10. While the return on equity of 8.16% is underperforming the sector, the return on assets of 1.01% are outperforming 55% of companies in the Global Banks - Global industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.73 is below the industry median of 1.22.

The company’s largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 8.94% of outstanding shares, followed by Dodge & Cox with 1.16% and Pioneer Investments (Trades, Portfolio) with 0.27%.

Berry Global Group Inc. (NYSE:BERY) has a market cap of $6.33 billion; the stock is trading with a price-earnings ratio of 13.15 and a price-sales ratio of 0.83. According to the DCF calculator, the stock has a fair value of $39.27 while trading at about $48.25. The stock price has fallen 19% over the last 12 months and is currently 21.81% below its 52-week high and 19.14% above its 52-week low.

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GuruFocus gives the manufacturer of plastic packaging products a profitability and growth rating of 8 out of 10. The return on equity of 39.66% and return on assets of 5.61% are outperforming 60% of companies in the Global Packaging & Containers industry. Its financial strength is rated 4 out of 10. The cash-debt of 0.07 is below the industry median of 0.57.

Andreas Halvorsen (Trades, Portfolio) is the company’s largest guru shareholder with 5.48% of outstanding shares, followed by Ron Baron (Trades, Portfolio) with 0.61% and Cohen with 0.19%.

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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