6 Stocks With Low Price-Sales Ratios

First Horizon, Redwood on the list

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Dec 26, 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.

International Speedway Corp. Class A (ISCA) shares are trading around $42.10 with a price-sales ratio of 2.66 and a price-earnings ratio of 6.87. The company, which operates 13 motorsports stadiums, has a market cap of $1.88 billion. The stock has risen at an annualized rate of 5.0% over the last 10 years.

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John Rogers (Trades, Portfolio) is the company's largest shareholder among the gurus with 3.43% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 2.82%, John Rogers (Trades, Portfolio) with 1.52% and Mario Gabelli (Trades, Portfolio) with 0.27%.

Fresenius Medical Care AG & Co. KGa (FMS) shares are trading around $32 with a price-sales ratio of 1.12 and a price-earnings ratio of 9.22. The kidney dialysis company has a market cap of $20.24 billion. The stock has risen at an annualized rate of 5.0% over the past decade.

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The discounted cash flow calculator gives the company a fair value of $49.13, suggesting it is undervalued with a 33% of margin of safety. The Peter Lynch earnings line gives the stock a fair value of $57.00.

Canadian Natural Resources Ltd. (CNQ) shares are trading around $22.50 with a price-sales ratio of 1.71, a price-earnings ratio of 10.49 and a forward price-earnings ratio of 8.76. The oil and natural gas producers in Western Canada, has a market cap of $29.36 billion. The stock has risen at an annualized rate of 5.1% over the last 10 years.

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The DCF calculator gives the company a fair value of $25.16, suggesting it is undervalued with a 4% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $32.25.

The company's largest guru shareholder is First Eagle Investment (Trades, Portfolio) with 0.38% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.08%, Ray Dalio (Trades, Portfolio) with 0.05% and Steven Cohen (Trades, Portfolio) with 0.05%.

Cathay General Bancorp (CATY) shares are trading around $32.54 with a price-sales ratio of 4.55, a price-earnings ratio of 11.44 and a forward price-earnings ratio of 9.51. The provider of various financial services has a market cap of $2.64 billion. The stock has risen at an annualized rate of 5.1% over the past decade.

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The DCF calculator gives the company a fair value of $41.89, suggesting it is undervalued with a 22% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $39.

The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 1.26% of outstanding shares, followed by Hotchkis & Wiley with 0.07%.

Redwood Trust Inc. (RWT) shares are trading around $14.69 with a price-sales ratio of 6.66 and a price-earnings ratio of 8.96. The company which operates residential mortgage banking and investment portfolio, has a market cap of $1.22 billion. The stock has risen at an annualized rate of 5.2% over the last 10 years.

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The DCF calculator gives the stock a fair value of $17.5, suggesting it is undervalued with 16% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $24.45.

The company's largest guru shareholder is Wallace Weitz (Trades, Portfolio) with 4.27% of outstanding shares, followed by Jerome Dodson (Trades, Portfolio) with 1.33% and Simons’ firm with 0.41%.

First Horizon National Corp. (FHN) shares are trading around $12.96 with a price-sales ratio of 2.16, a forward price-earnings ratio of 8.33 and a price-earnings ratio of 11.79. The provider of financial products and services, has a market cap of $4.2 billion. The stock has risen at an annualized rate of 5.2% over the past decade.

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The stock has a fair value of $11.77 according to the DCF calculator, suggesting it is overpriced by 11%. The Peter Lynch earnings line gives the stock a fair value of $8.25.

With 1.43% of outstanding shares, NWQ Managers (Trades, Portfolio) is the company's largest guru shareholder, followed by Hotchkis & Wiley with 0.8% and Diamond Hill Capital (Trades, Portfolio) with 0.55%.

Disclosure: I do not own any stocks mentioned.