6 Large-Cap Stocks With Low Price-Sales Ratios

BB&T, Caterpillar make the list

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Mar 14, 2019
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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 Acco Brands Corp. (ACCO, Financial) are trading around $8.8 with a price-sales ratio of 0.50 and a price-earnings ratio of 8.91. The company, which manufactures office and school supplies as well as calendar products, has a market cap of $920 million. The stock has risen at an annualized rate of 22.8% over the last 10 years.

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The discounted cash flow calculator gives the stock a fair value of $10.81, suggesting it is undervalued with a 17% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $20.10.

Hotchkis & Wiley is the company's largest guru shareholder with 0.27% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.22% and Barrow, Hanley, Mewhinney & Strauss with 0.20%.

Class A shares of Accenture PLC (ACN) are trading around $164 with a price-sales ratio of 2.55. The consulting, technology and outsourcing services company has a market cap of $105 billion. The stock has risen at an annualized rate of 19.71% over the past decade.

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The DCF calculator gives the stock a fair value of $99.85, suggesting it is overpriced by 65%. The Peter Lynch earnings line gives the stock a fair value of $95.10.

The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.64% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.30%, Simons’ firm with 0.13% and the MS Global Franchise Fund (Trades, Portfolio) with 0.06%.

Acme United Corp. (ACU, Financial) is trading around $17.11 with a price-sales ratio of 0.45 and a price-earnings ratio of 13.36. The company, which supplies cutting, measuring and safety products, has a market cap of $57.65 million. The stock has risen at an annualized rate of 11.93% over the last 10 years.

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The DCF calculator gives the stock a fair value of $13.7, suggesting it is overpriced by 25%. The Peter Lynch earnings line gives the stock a fair value of $13.80.

With 4.02% of outstanding shares, Simons’ firm is the company's largest guru shareholder, followed by Chuck Royce (Trades, Portfolio) with 3.82%.

Bank Bradesco SA (BBD, Financial) is trading around $11.65 with a price-sales ratio of 2.96 and a price-earnings ratio of 16.67. The Brazilian bank has a market cap of $73.4 billion. The stock has risen at an annualized rate of 12.89% over the past decade.

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The DCF calculator gives the company a fair value of $8.46, suggesting it is overpriced by 38%. The Peter Lynch earnings line gives the stock a fair value of $11.05.

The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.52% of outstanding shares, followed by Ken Heebner (Trades, Portfolio) with 0.21% and Pioneer Investments with 0.03%.

Shares of BB&T Corp. (BBT, Financial) are trading around $50 with a price-sales ratio of 3.38 and price-earnings ratio of 12.73. The bank holding company has a market cap of $38.04 billion. The stock has risen at an annualized rate of 12.50% over the last 10 years.

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The DCF calculator gives the company a fair value of $51.01, suggesting it is undervalued with a 2% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $55.65.

The company's largest guru shareholder is Dodge & Cox with 2.25% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 2.18% and Pioneer Investments with 0.14%.

Caterpillar Inc. (CAT, Financial) is trading around $133 with a price-sales ratio of 1.71 and a price-earnings ratio of 12.99. The company, which manufactures specialized heavy construction and mining equipment, has a market cap of $76.65 billion. The stock has risen at an annualized rate of 19.26% over the past decade.

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The DCF calculator gives the company a fair value of $109.69, suggesting it is overpriced by 21%. The Peter Lynch earnings line gives the stock a fair value of $93.45.

With 1.96% of outstanding shares, Bill Gates (Trades, Portfolio) is the company's largest guru shareholder, followed by PRIMECAP Management (Trades, Portfolio) with 1.63% and Spiros Segalas (Trades, Portfolio) with 0.22%.

Disclosure: I do not own any stocks mentioned.

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