6 Cheap Stocks With Low Price-Sales Ratios

Ulta Beauty makes the list

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Apr 08, 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 GTT Communications Inc. (GTT, Financial) are trading around $38.51 with a price-sales ratio of 1.33 and a forward price-earnings ratio of 68.97. The telecommunications company has a market cap of $2.15 billion. The stock has risen at an annualized rate of 54.72% over the last 10 years.

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Ron Baron (Trades, Portfolio) is the company's largest guru shareholder with 4.48% of outstanding shares, followed by Ruane Cunniff (Trades, Portfolio) with 3.25% and PRIMECAP Management (Trades, Portfolio) with 0.11%.

Tucows Inc. (TCX, Financial) is trading around $82.2 with a price-sales ratio of 2.56 and a price-earnings ratio of 51.75. The internet content solutions provider has a market cap of $874.55 million. The stock has risen at an annualized rate of 51.16% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $42.26, suggesting it is overpriced by 82%. The Peter Lynch earnings line gives the stock a fair value of $33.30.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 4.11% of outstanding shares.

Drive Shack Inc. (DS, Financial) is trading around $4.94 with a price-sales ratio of 1.09. The company, which operates golf-related leisure and entertainment businesses, has a market cap of $331.11 million. The stock has risen at an annualized rate of 50.17% over the last 10 years.

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With 0.16% of outstanding shares, Simons’ firm is the company's largest guru shareholder.

Ulta Beauty Inc. (ULTA, Financial) is trading around $353.63 with a price-sales ratio of 3.17 and a price-earnings ratio of 40.68. The retailer of cosmetics and salon products has a market cap of $20.79 billion. The stock has risen at an annualized rate of 48.03% over the past decade.

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The DCF calculator gives the company a fair value of $311.16, suggesting it is overpriced by 14%. The Peter Lynch earnings line gives the stock a fair value of $160.80

The company's largest guru shareholder is Simons’ firm with 0.75% of outstanding shares, followed by PRIMECAP Management with 0.47% and David Rolfe (Trades, Portfolio) with 0.36%.

Gray Television Inc. (GTN, Financial) is trading around $22.70 with a price-sales ratio of 1.83 and a price-earnings ratio of 9.29. The television broadcast company has a market cap of $2.28 billion. The stock has risen at an annualized rate of 47.60% over the last 10 years.

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The DCF calculator gives the company a fair value of $25.47, suggesting it is undervalued with a 11% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $45.30.

The company's largest guru shareholder is Simons’ firm with 0.63% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.45%, Lee Ainslie (Trades, Portfolio) with 0.30% and Joel Greenblatt (Trades, Portfolio) with 0.24%.

EVI Industries Inc. (EVI, Financial) is trading around $39 with a price-sales ratio of 2.37 and a price-earnings ratio of 125.82. The company, which distributes commercial laundry and dry-cleaning equipment, has a market cap of $448.25 million. The stock has risen at an annualized rate of 46.60% over the past decade.

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The DCF calculator gives the company a fair value of $8.71, suggesting it is overpriced by 348%. The Peter Lynch earnings line gives the stock a fair value of $5.10.

With 0.56% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder.

Disclosure: I do not own any stocks mentioned.

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