6 Guru Stocks With Low Price-Sales Ratios

American Express tops the list

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Jun 11, 2019
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According to the GuruFocus All-in-One Screener, the following companies look cheap since they are trading with low price-sales ratios.

Shares of American Express Co. (AXP, Financial) are trading around $120 with a price-sales ratio of 3.49 and a price-earnings ratio of 15.23.

The company, which provides credit cards, travel services and other products, has a market cap of $100 billion. The stock has climbed at an annualized rate of 3.49% over the last 10 years.

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The discounted cash flow calculator gives the stock a fair value of $117.92, suggesting it is slightly overpriced. The Peter Lynch earnings line gives the stock a fair value of $117.6.

Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder with 18.16% of outstanding shares, followed by Dodge & Cox with 2.82% and Barrow, Hanley, Mewhinney & Strauss with 1.32%.

Lockheed Martin Corp. (LMT, Financial) is trading around $352 with a price-sales ratio of 1.78 and a price-earnings ratio of 18.01.

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The defense contractor has a market cap of $99.60 billion. The stock has risen at an annualized rate of 1.78% over the past decade.

The DCF calculator gives the stock a fair value of $213.45, suggesting it is overpriced by 65%. The Peter Lynch earnings line gives the stock a fair value of $293.55.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.11% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.05%, Joel Greenblatt (Trades, Portfolio) with 0.04% and Ken Heebner (Trades, Portfolio) with 0.04%.

Starbucks Corp. (SBUX, Financial) is trading around $81.4 with a price-sales ratio of 4.16 and price-earnings ratio of 35.24.

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The coffee chain has a market cap of $5.21 billion. The stock has gained at an annualized rate of 4.16% over the last 10 years.

The DCF calculator gives the stock a fair value of $65.76, suggesting it is overpriced by 23%. The Peter Lynch earnings line gives the stock a fair value of $33.75.

With 0.89% of outstanding shares, Simons’ firm is the company's largest guru shareholder, followed by Bill Ackman (Trades, Portfolio) with 0.80% and Pioneer Investments with 0.24%.

GlaxoSmithKline PLC (GSK, Financial) is trading around $38.98 with a price-sales ratio of 2.43 and a price-earnings ratio of 19.41.

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The pharmaceutical company has a market cap of $97.76 billion. The stock has risen at an annualized rate of 2.43% over the past decade.

The DCF calculator gives the company a fair value of $21.83, suggesting it is overpriced by 78%. The Peter Lynch earnings line gives the stock a fair value of $30.75.

The company's largest guru shareholder is Dodge & Cox with 1.94% of outstanding shares, followed by Hotchkis & Wiley with 0.58% and Simons’ firm with 0.57%.

Rio Tinto PLC (RIO, Financial) is trading around $588 with a price-sales ratio of 2.46 and a price-earnings ratio of 5.52.

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The company, which operates in the Industrial Metals and Minerals industry, has a market cap of $97.59 billion. The stock has risen at an annualized rate of 2.46% over the last 10 years.

The DCF calculator gives the company a fair value of $45.26, suggesting it is undervalued with a 47% of margin of safety. The Peter Lynch earnings line gives the stock a fair value of $95.55.

The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.59% of outstanding shares, followed by Simons’ firm with 0.04% and Steven Cohen (Trades, Portfolio) with 0.01%.

Danaher Corp. (DHR, Financial) is trading around $138 with a price-sales ratio of 4.79 and a price-earnings ratio of 39.78

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The conglomerate, which is involved in the fields of environmental and applied solutions, dental-related businesses, life sciences and diagnostics, has a market cap of $96.59 billion. The stock has climbed at an annualized rate of 4.79% over the past decade.

The DCF calculator gives the company a fair value of $37.69, suggesting it is overpriced by 257%. The Peter Lynch earnings line gives the stock a fair value of $50.85.

The company's largest guru shareholder is the Vanguard Health Care Fund (Trades, Portfolio) with 0.67% of outstanding shares, followed by Dodge & Cox with 0.66% and Daniel Loeb (Trades, Portfolio) with 0.52%.

Disclosure: I do not own any stocks mentioned.

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