6 Stocks With Low Price-Sales Ratios

Freeport-McMoRan makes the list

Author's Avatar
Jan 18, 2019
Article's Main Image

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.

Shares of Heartland Express Inc. (HTLD) are trading around $19.58 with a price-sales ratio of 2.58 and a price-earnings ratio of 18.30. The provider of transportation services to shippers, has a market cap of $1.6 billion. The stock has risen at an annualized rate of 5.0% over the last 10 years.

116210176.png

The discounted cash flow calculator gives the stock a fair value of $11.45, suggesting it is overpriced by 71%. The Peter Lynch earnings line gives the stock a fair value of $13.95.

Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management, LLC is the company's largest guru shareholder with 0.08% of outstanding shares, followed by Murray Stahl (Trades, Portfolio)’s Horizon Kinetics with 0.02%.

Shares of Dril-Quip Inc. (DRQ) are trading around $36.9 with a price-sales ratio of 3.54. The company which operates in the oil and gas industry, has a market cap of $1.32 billion. The stock has climbed at an annualized rate of 5.0% over the past decade.

863243816.png

The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 4.72% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio)’s GAMCO Investors with 1.61%, Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.36% and Hotchkis & Wiley with 0.29%.

Class B shares of Freeport-McMoRan Inc. (FCX) are trading around $12.13 with a price-sales ratio of 0.88 and a forward price-earnings ratio of 5.61. The mining company has a market cap of $17.58 billion. The stock has risen at an annualized rate of 5.1% over the last 10 years.

1972664352.png

The DCF calculator gives the company a fair value of $23.12, suggesting it is undervalued with a 48% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $29.55.

With 3.46% of outstanding shares, Carl Icahn (Trades, Portfolio) is the company's largest guru shareholder, followed by Fisher with 2.23%, Gabelli’s firm with 0.22% and Jeremy Grantham (Trades, Portfolio)’s GMO LLC with 0.21%.

Shares of PDC Energy Inc. (PDCE) are trading around $32.9 with a price-sales ratio of 2.32 and a forward price-earnings ratio of 10.22. The domestic independent exploration and production company, has a market cap of $2.17 billion. The stock has risen at an annualized rate of 5.1% over the past decade.

1311417042.png

The company's largest guru shareholder is NWQ Managers (Trades, Portfolio) with 2.18% of outstanding shares.

Legg Mason Inc. (LM) is trading around $28.46 with a price-sales ratio of 0.78 and price-earnings ratio of 8.64. The asset management company has a market cap of $2.43 billion. The stock has risen at an annualized rate of 5.1% over the last 10 years.

1923746816.png

The DCF calculator gives the company a fair value of $35.32, suggesting it is undervalued with a 19% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $48.90.

The company's largest guru shareholder is Gabelli’s firm with 2.39% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 0.75% and Robert Olstein (Trades, Portfolio) with 0.49%.

S&T Bancorp Inc. (STBA) shares are trading around $41.27 with a price-sales ratio of 5.09 and price-earnings ratio of 16.41. It offers banking products and services and has a market cap of $1.44 billion. The stock has risen at an annualized rate of 5.2% over the past decade.

640159012.png

The discounted cash flow calculator gives the stock a fair value of $36.31, suggesting it is overpriced by 14%. The Peter Lynch earnings line gives the stock a fair value of $34.20.

With 0.03% of outstanding shares, Simons' firm with 1.39% is the largest investor of the company among the gurus.

Disclosure: I do not own any stocks mentioned.

Read more here:Â

6 Stocks Beating the Market

6 Low P/E Stocks Gurus Are Buying

5 Health Care Stocks in Gurus' Portfolios