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

6 Guru Stocks With Low Price-Earnings Ratios

Conagra Brands tops the list

January 08, 2019 | 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 $10.62 billion, Conagra Brands Inc. (NYSE:CAG) is trading with a price-earnings ratio of 11.88, a price-sales ratio of 1.08 and a forward price-earnings ratio of 10.62. According to the DCF calculator, the stock has a fair value of $19.58 while trading at $22.40. The share price has fallen 42% over the last 12 months and is currently 44.56% below its 52-week high and 8.11% above its 52-week low.

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GuruFocus gives the packaged foods company a profitability and growth rating of 5 out of 10. The return on equity of 16.83% and return on assets of 5.73% are outperforming 73% of companies in the Global Packaged Foods industry. Its financial strength is rated 5 out of 10. The equity-asset ratio of 0.04 is below the industry median of 0.50.

The company’s largest guru shareholder is Jana Partners (Trades, Portfolio) with 1.06% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.36%, Mario Gabelli (Trades, Portfolio)’s GAMCO Investors with 0.29% and Pioneer Investments (Trades, Portfolio) with 0.18%.

With a $59.17 billion market cap, Chubb Ltd. (NYSE:CB) is trading with a price-earnings ratio of 11.73, a price-sales ratio of 1.82 and a forward price-earnings ratio of 11.64. According to the DCF calculator, the stock has a fair value of $117.18 while trading at $127. The share price is currently 18.48% below its 52-week high and 7.41% above its 52-week low.

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GuruFocus gives the provider of commercial and personal property and casualty insurance, a profitability and growth rating of 4 out of 10. While the return on equity of 10.08% is underperforming the sector, the return on assets of 3.06% is outperforming 56% of companies in the Global Insurance - Property and Casualty industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.08 is below the industry median of 2.82.

The T Rowe Price Equity Income Fund (Trades, Portfolio) is the company’s largest shareholder among the gurus with 0.51% of outstanding shares, followed by Chris Davis (Trades, Portfolio) with 0.47% and Simons’ firm with 0.07%.

With a market cap of $200.79 billion, China Mobile Ltd. (NYSE:CHL) is trading with a price-earnings ratio of 11.32, a price-sales ratio of 1.79 and a forward price-earnings ratio of 11.95. According to the DCF calculator, the stock has a fair value of $47.02 while trading at $50. The share price fell 2% over the last 12 months and is currently 7.51% below its 52-week high and 13.83% above its 52-week low.

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GuruFocus gives the Chinese telecom operator a profitability and growth rating of 8 out of 10. The return on equity of 11.78% and return on assets of 7.67% are outperforming 60% of companies in the Global Telecom Services industry. Its financial strength is rated 9 out of 10 with no debt.

The company’s largest shareholder among the gurus is Simons’ firm with 0.12% of outstanding shares, followed by Matthews Pacific Tiger Fund (Trades, Portfolio) with 0.09%, Sarah Ketterer (Trades, Portfolio)’s Causeway Capital Management with 0.04% and Charles Brandes (Trades, Portfolio) with 0.03%.

Chimera Investment Corp. (NYSE:CIM) has a market cap of $3.38 billion; the stock is trading with a price-earnings ratio of 5.82, a price-sales ratio of 5.19 and a forward price-earnings ratio of 8.04. According to the DCF calculator, the stock has a fair value of $33.28 while trading at $18.30. The share price has not changed over the last 12 months and is currently 6.37% below its 52-week high and 14.71% above its 52-week low.

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GuruFocus gives the real estate investment trust a profitability and growth rating of 3 out of 10. While the return on equity of 15.77% is outperforming the sector, the return on assets of 2.77% is underperforming 63% of companies in the Global REIT - Diversified industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.01 is below the industry median of 0.06.

Simons’ firm is the company’s largest guru shareholder with 0.33% of outstanding shares, followed by Leon Cooperman (Trades, Portfolio)’s OMEGA Advisors with 0.03%.

Continental Resources Inc. (NYSE:CLR) has a market cap of $16.98 billion. It is trading with a price-earnings ratio of 10.33 and a price-sales ratio of 3.69. According to the DCF calculator, the stock has a fair value of $46.77 while trading at about $45.60. The share price has fallen 19% over a 12-month period and is currently 37.23% below its 52-week high and 27.07% above its 52-week low.

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The company, which produces crude oil and natural gas, has a GuruFocus profitability and growth rating of 6 out of 10. The return on equity of 31.01% and return on assets of 11.27% are outperforming 80% of companies in the Global Oil and Gas E&P industry. Its financial strength is rated 5 out of 10. The equity-asset ratio of 0.40 is below the industry median of 0.54.

The company’s largest shareholder among the gurus is Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.18% of outstanding shares, followed by Michael Price (Trades, Portfolio)’s MFP Investors LLC with 0.07%.

Comcast Corp. (NASDAQ:CMCSA) has a market cap of $162.92 billion; the stock is trading with a price-earnings ratio of 7.01 and a price-sales ratio of 1.09. According to the DCF calculator, the stock has a fair value of $145.47 while trading at about $36. The share price has fallen 12% over the last 12 months and is currently 18.61% below its 52-week high and 17.68% above its 52-week low.

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GuruFocus gives the media and technology company a profitability and growth rating of 8 out of 10. The return on equity of 36.04% and return on assets of 12.67% are outperforming 91% of companies in the Global Pay TV industry. Its financial strength is rated 5 out of 10. The cash-debt of 0.15 is below the industry median of 0.30.

Dodge & Cox is the company’s largest guru shareholder with 2.91% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.84%, First Eagle Investment (Trades, Portfolio) with 0.74% and Mason Hawkins (Trades, Portfolio)’ Southeastern Asset Management with 0.33%.

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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