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Tiziano Frateschi
Tiziano Frateschi
Articles (1848)  | Author's Website |

6 Guru Stocks With Low Price-Earnings Ratios

Allstate tops the list

December 28, 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 $28.17 billion, Allstate Corp. (NYSE:ALL) is trading with a price-earnings ratio of 8.07, a price-sales ratio of 0.73 and a forward price-earnings ratio of 9. According to the DCF calculator, the stock has a fair value of $108.51 while trading at $82. The share price has fallen 22% over the last 12 months and is currently 22.37% below its 52-week high and 6.22% above its 52-week low.

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GuruFocus gives the insurance company a profitability and growth rating of 4 out of 10. The return on equity of 15.85% and return on assets of 3.32% are outperforming 62% of companies in the Global Insurance - Property and Casualty industry. Its financial strength is rated 4 out of 10. The equity-asset ratio of 0.07 is below the industry median of 2.82.

The company’s largest guru shareholder is Richard Pzena (Trades, Portfolio) with 0.18% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.12% and Pioneer Investments (Trades, Portfolio) with 0.11%.

With a $5.66 billion market cap, Allison Transmission Holdings Inc. (NYSE:ALSN) is trading with a price-earnings ratio of 8.54, a price-sales ratio of 2.23 and a forward price-earnings ratio of 7.99 According to the DCF calculator, the stock has a fair value of $54.58 while trading at $43.63. The share price is currently 18.84% below its 52-week high and 16.63% above its 52-week low.

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GuruFocus gives the manufacturer of vehicle transmissions a profitability and growth rating of 9 out of 10. The return on equity of 109.24% and return on assets of 16.69% are outperforming 94% of companies in the Global Auto Parts industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.09 is below the industry median of 0.53.

Lou Simpson (Trades, Portfolio)’s SQ Advisors LLC is the company’s largest shareholder among the gurus with 6.69% of outstanding shares, followed by Simons’ firm with 0.64% and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.34%.

With a market cap of $5.93 billion, Arrow Electronics Inc. (NYSE:ARW) is trading with a price-earnings ratio of 11.19, a price-sales ratio of 0.20 and a forward price-earnings ratio of 7.19. According to the DCF calculator, the stock has a fair value of $64.96 while trading at $68. The share price fell 15% over the last 12 months and is currently 22.08% below its 52-week high and 8.45% above its 52-week low.

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GuruFocus gives the distributor of electronic components, software and data center infrastructure hardware 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.

The company’s largest shareholder among the gurus is Pzena with 0.35% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 0.13%, Jeremy Grantham (Trades, Portfolio)’s GMO LLC with 0.07% and the FPA Capital Fund (Trades, Portfolio) with 0.05%.

Altice USA Inc. (NYSE:ATUS) has a market cap of $11.6 billion; the stock is trading with a price-earnings ratio of 5.34, a price-sales ratio of 1.28 and a forward price-earnings ratio of 20. According to the DCF calculator, the stock has a fair value of $32.32 while trading at $16.2. The share price fell 24% over the last 12 months and is currently 35.59% below its 52-week high and 11.79% above its 52-week low.

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GuruFocus gives the cable TV provider 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 the Steven Cohen (Trades, Portfolio) with 0.48% and David Einhorn (Trades, Portfolio)’s Greenlight Capital with 0.41%.

Baidu Inc. (NASDAQ:BIDU) has a market cap of $56.32 billion. It is trading with a price-earnings ratio of 12.66 and a price-sales ratio of 3.81. According to the DCF calculator, the stock has a fair value of $363.9 while trading at about $161.58. The share price has fallen 31% over a 12-month period and is currently 43.15% below its 52-week high and 4.51% above its 52-week low.

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GuruFocus gives the Chinese search engine a profitability and growth rating of 8 out of 10. The return on equity of 22.41% and return on assets of 11.08% are outperforming 72% of companies in the Global Internet Content and Information industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 2.12 is below the industry median of 7.46.

The company’s largest shareholder among the gurus is Sarah Ketterer (Trades, Portfolio)’s Causeway Capital Management with 1.26% of outstanding shares, followed by Dodge & Cox with 1.1%, First Pacific Advisors with 0.63%, Steven Romick (Trades, Portfolio)’s FPA Crescent Fund with 0.49% and Ken Fisher (Trades, Portfolio) with 0.48%.

Popular Inc. (NASDAQ:BPOP) has a market cap of $4.68 billion; the stock is trading with a price-earnings ratio of 11.64 and a price-sales ratio of 2.13. According to the DCF calculator, the stock has a fair value of $42.7 while trading at about $46.51. The share price has risen 31% over the last 12 months and is currently 20.56% below its 52-week high and 32.22% above its 52-week low.

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GuruFocus gives the bank holding company a profitability and growth rating of 3 out of 10. The return on equity of 7.81% and return on assets of 0.90% are underperforming 72% of companies in the Global Banks - Regional - U.S. industry. Its financial strength is rated 5 out of 10. The cash-debt of 2.87 is above the industry median of 1.22.

Hotchkis & Wiley is the company’s largest guru shareholder with 4.95% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 1.8%, Cohen with 1.39% and Chuck Royce (Trades, Portfolio) with 0.5%.

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 www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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