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Tiziano Frateschi
Tiziano Frateschi
Articles (1938)  | Author's Website |

6 Cheap Stocks With Low Price-Earnings Ratio

Fiat Chrysler makes the list

January 28, 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 $52.33 billion, Express Scripts Holding Co. (ESRX) is trading with a price-earnings ratio of 10.79, a price-sales ratio of 0.52 and a forward price-earnings ratio of 9.73. According to the DCF calculator, the stock has a fair value of $201.17 while trading at $92.33. The share price has risen 14% over the last 12 months and is currently 9.24% below its 52-week high and 37.95% above its 52-week low.

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GuruFocus gives the pharmacy benefit manager a profitability and growth rating of 8 out of 10. The return on equity of 26.51% and return on assets of 9.11% are outperforming 95% of companies in the Global Health Care Plans industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.25 is below the industry median of 1.15.

The company’s largest guru shareholder is Dodge & Cox with 7.08% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 2.4%, Larry Robbins (Trades, Portfolio) with 1.53% and David Abrams (Trades, Portfolio) with 0.57%.

With a $36.95 billion market cap, Energy Transfer LP (ET) is trading with a price-earnings ratio of 12.1, a price-sales ratio of 0.32 and a forward price-earnings ratio of 9.49. According to the DCF calculator, the stock has a fair value of $17.48 while trading at $14.30. The share price fell 25% over the last 12 months and is currently 27.09% below its 52-week high and 20.72% above its 52-week low.

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GuruFocus gives company a profitability and growth rating of 9 out of 10. The return on assets of 1.54% is underperforming 77% of companies in the Global Oil and Gas Midstream industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.01 is below the industry median of 0.04.

David Tepper (Trades, Portfolio) is the company’s largest guru shareholder with 0.17% of outstanding shares, followed by Jim Simons' (Trades, Portfolio) Renaissance Technologies with 0.11%, Leon Cooperman (Trades, Portfolio) with 0.09% and T Boone Pickens (Trades, Portfolio) with 0.01%.

With a market cap of $32.34 billion, Fiat Chrysler Automobiles NV (FCAU) is trading with a price-earnings ratio of 7.2, a price-sales ratio of 0.21 and a forward price-earnings ratio of 4.37. According to the DCF calculator, the stock has a fair value of $26.3 while trading at $16.70. The share price fell 32% over the last 12 months and is currently 33.87% below its 52-week high and 17.77% above its 52-week low.

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GuruFocus give the manufacturer of passenger vehicles, a profitability and growth rating of 7 out of 10. While the return on equity of 14.44% is outperforming the sector, the return on assets of 3.21% is underperforming 54% of companies in the Global Auto Manufacturers industry. Its financial strength is rated 6 out of 10 with a cash-debt ratio of 0.80.

The company’s largest guru shareholder is Chase Coleman (Trades, Portfolio) with 4.03% of outstanding shares, followed by Ruane Cunniff (Trades, Portfolio) with 1.25%, Bill Nygren (Trades, Portfolio)’s Oakmark Fund with 1.15% and Pioneer Investments (Trades, Portfolio) with 0.77%.

First Data Corp. (FDC) has a market cap of $21.62 billion; class A shares are trading with a price-earnings ratio of 12.5, a price-sales ratio of 2.16 and a forward price-earnings ratio of 14.47. According to the DCF calculator, the stock has a fair value of $20.33 while trading at $23.72. The share price has risen 27% over the last 12 months and is currently 13.30% below its 52-week high and 56.69% above its 52-week low.

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GuruFocus gives the provider of electronic commerce and payment solutions a profitability and growth rating of 7 out of 10. The return on equity of 55.09% and return on assets of 3.94% are outperforming 52% of companies in the Global Business Services industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.03 is below the industry median of 0.97.

With 2.35% of outstanding shares, Robbins is the company’s largest guru shareholder, followed by Steve Mandel (Trades, Portfolio) with 2.34%, Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.6% and Cooperman’s firm with 0.55%.

Flex Ltd. (FLEX) has a market cap of $4.3 billion. It is trading with a price-earnings ratio of 14.5 and a price-sales ratio of 0.17. According to the DCF calculator, the stock has a fair value of $5.99 while trading at about $8.14. The share price has fallen 57% over a 12-month period and is currently 58.17% below its 52-week high and 21.22% above its 52-week low.

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The company, which is a provider of Sketch-to-Scale services, has a GuruFocus profitability and growth rating of 6 out of 10. While the return on equity of 9.96% is outperforming the sector, the return on assets of 2.15% is underperforming 53% of companies in the Global Contract Manufacturers industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.47 is below the industry median of 1.32.

The company’s largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 12.35% of outstanding shares, followed by Nygren’s Fund with 3.8%.

HCA Healthcare Inc. (HCA) has a market cap of $46.04 billion; the stock is trading with a price-earnings ratio of 14.9 and a price-sales ratio of 1.05. According to the DCF calculator, the stock has a fair value of $95.78 while trading at about $133. The share price has climbed 45% over the last 12 months and is currently 9.08% below its 52-week high and 46.02% above its 52-week low.

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GuruFocus gives the health care services company a profitability and growth rating of 8 out of 10. The return on assets of 8.62% is outperforming 71% of companies in the Global Medical Care industry. Its financial strength is rated 4 out of 10. The cash-debt of 0.02 is below the industry median of 0.28.

Vanguard Health Care Fund (Trades, Portfolio) is the company’s largest guru shareholder with 0.22% of outstanding shares, followed by Robbins with 1.26% and Nygren’s firm with 1.14%.

Disclosure: I do not own any stocks mentioned.

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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