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Tiziano Frateschi
Tiziano Frateschi
Articles (1857)  | Author's Website |

6 Cheap Stocks With Low Price-Earnings Ratios

HollyFrontier tops the list

February 11, 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 $9.49 billion, HollyFrontier Corp. (NYSE:HFC) is trading with a price-earnings ratio of 6.61, a price-sales ratio of 0.56 and a forward price-earnings ratio of 8.98. According to the DCF calculator, the stock has a fair value of $88.72 while trading at $55. The share price has climbed 23% over the last 12 months and is currently 34.25% below its 52-week high and 29.09% above its 52-week low.

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GuruFocus gives the petroleum refiner a profitability and growth rating of 5 out of 10. The return on equity of 26.59% and return on assets of 13.54% are outperforming 56% of companies in the Global Oil and Gas Refining and Marketing industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 0.45 is below the industry median of 0.61.

The company’s largest guru shareholder is Joel Greenblatt (Trades, Portfolio) with 0.16% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.1%, Ray Dalio (Trades, Portfolio) with 0.06% and John Buckingham (Trades, Portfolio) with 0.05%.

With a $9 billion market cap, Huntington Ingalls Industries Inc. (NYSE:HII) is trading with a price-earnings ratio of 13.49, a price-sales ratio of 1.17 and a forward price-earnings ratio of 13. According to the DCF calculator, the stock has a fair value of $166.84 while trading at $210.24. The share price fell 9% over the last 12 months and is currently 24.02% below its 52-week high and 20.97% above its 52-week low.

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GuruFocus gives company a profitability and growth rating of 8 out of 10. The return on equity of 39.49% and return on assets of 10.92% are outperforming 80% of companies in the Global Aerospace and Defense industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.05 is below the industry median of 0.53.

Pioneer Investments is the company’s largest guru shareholder with 0.27% of outstanding shares.

With a market cap of $4.51 billion, Hospitality Properties Trust (NASDAQ:HPT) is trading with a price-earnings ratio of 13.86 and a price-sales ratio of 1.98. According to the DCF calculator, the stock has a fair value of $20.6 while trading at $27.43. The share price was stable over the last 12 months and is currently 6.80% below its 52-week high and 22.07% above its 52-week low.

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GuruFocus gives the real estate investment trust a profitability and growth rating of 7 out of 10. The return on equity of 11.78% and return on assets of 4.54% are outperforming 55% of companies in the Global REIT - Hotel and Motel industry. Its financial strength is rated 4 out of 10 with a cash-debt ratio of 0.01.

The company’s largest guru shareholder is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.81% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 0.36%.

Huntsman Corp. (NYSE:HUN) has a market cap of $5.21 billion and is trading with a price-earnings ratio of 5.82, a price-sales ratio of 0.54 and a forward price-earnings ratio of 7.25. According to the DCF calculator, the stock has a fair value of $36.17 while trading at $22. The share price has fallen 29% over the last 12 months and is currently 37.37% below its 52-week high and 24.40% above its 52-week low.

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GuruFocus gives the manufacturer of organic and of inorganic chemical products a profitability and growth rating of 6 out of 10. The return on equity of 33.78% and return on assets of 8.37% are outperforming 79% of companies in the Global Chemicals industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.18 is below the industry median of 0.72.

With 0.85% of outstanding shares, David Tepper (Trades, Portfolio) is the company’s largest guru shareholder, followed by First Eagle Investment (Trades, Portfolio) with 0.65%.

Intel Corp. (NASDAQ:INTC) has a market cap of $220 billion. It is trading with a price-earnings ratio of 10.99 and a price-sales ratio of 3.26. According to the DCF calculator, the stock has a fair value of $72.39 while trading at about $49. The share price has risen 12% over a 12-month period and is currently 14.53% below its 52-week high and 17.10% above its 52-week low.

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The chipmaker has a GuruFocus profitability and growth rating of 9 out of 10. The return on equity of 29.63% and return on assets of 16.60% are outperforming 79% of companies in the Global Semiconductors industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 0.44 is below the industry median of 1.69.

The company’s largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.55% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.54%, Pioneer Investments with 0.16% and Lee Ainslie (Trades, Portfolio) with 0.15%.

Invesco Ltd. (NYSE:IVZ) has a market cap of $7.29 billion; the stock is trading with a price-earnings ratio of 8.58 and a price-sales ratio of 1.33. According to the DCF calculator, the stock has a fair value of $30.36 while trading at about $18.15. The share price has fallen 43% over the last 12 months and is currently 47.56% below its 52-week high and 19.44% above its 52-week low.

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GuruFocus gives the independent investment management firm a profitability and growth rating of 7 out of 10. The return on equity of 10.10% and return on assets of 2.77% are outperforming 54% of companies in the Global Asset Management industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.28 is below the industry median of 0.76.

Pzena is the company’s largest guru shareholder with 0.9% of outstanding shares.

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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