5 Large-Cap Stocks With Low Price-Sales Ratios

Johnson & Johnson tops the list

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Jun 18, 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 Johnson & Johnson (JNJ, Financial) are trading around $140.09 with a price-sales ratio of 4.67 and a price-earnings ratio of 25.94.

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The health care company, which operates in the pharmaceutical, medical devices and diagnostics sectors, has a market cap of $371.95 billion. The stock has climbed at an annualized rate of 11.60% over the last 10 years.

The discounted cash flow calculator gives the stock a fair value of $57.79, suggesting it is overpriced by 142%. The Peter Lynch earnings line gives the stock a fair value of $84.15.

Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder with 0.43% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.24% and Yacktman Asset Management (Trades, Portfolio) with 0.18%.

Walmart Inc. (WMT, Financial) is trading around $109 with a price-sales ratio of 0.62 and a price-earnings ratio of 37.74.

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The retailer has a market cap of $311.36 billion. The stock has risen at an annualized rate of 9.79% over the past decade.

The DCF calculator gives the stock a fair value of $30.93, suggesting it is overpriced by 252%. The Peter Lynch earnings line gives the stock a fair value of $43.35.

The company's largest guru shareholder is Bill Gates (Trades, Portfolio)’ foundation trust with 0.40% of outstanding shares, followed by Fisher with 0.36% and Pioneer Investments (Trades, Portfolio) with 0.11%.

Procter & Gamble Co. (PG, Financial) is trading around $111 with a price-sales ratio of 4.35 and price-earnings ratio of 26.48.

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The consumer goods company, which manufactures detergents, toilet paper, shampoo and Pampers diapers, has a market cap of $278.93 billion. The stock has risen at an annualized rate of 9.93% over the last 10 years.

The DCF calculator gives the stock a fair value of $44.95, suggesting it is overpriced by 147%. The Peter Lynch earnings line gives the stock a fair value of $63.

With 0.44% of outstanding shares, Yacktman Asset Management is the company's largest guru shareholder, followed by Pioneer Investments with 0.23% and the Yacktman Fund (Trades, Portfolio) with 0.22%.

Bank of America Corp. (BAC, Financial) is trading around $28.04 with a price-sales ratio of 3.10 and a price-earnings ratio of 10.42.

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The bank has a market cap of $266.61 billion. The stock has risen at an annualized rate of 8.14% over the past decade.

The DCF calculator gives the company a fair value of $28.79, suggesting it is fairly undervalued. The Peter Lynch earnings line gives the stock a fair value of $40.35.

The company's largest guru shareholder is Warren Buffett (Trades, Portfolio) with 9.43% of outstanding shares, followed by Dodge & Cox with 1.21% and PRIMECAP Management (Trades, Portfolio) with 0.38%.

The Walt Disney Co. (DIS, Financial) is trading around $141.65 with a price-sales ratio of 3.57 and a price-earnings ratio of 15.93.

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The media and entertainment company has a market cap of $254.93 billion. The stock has risen at an annualized rate of 19.75% over the last 10 years.

The DCF calculator gives the company a fair value of $189.23, suggesting it is undervalued with a 25% of margin of safety. The Peter Lynch earnings line gives the stock a fair value of $133.35.

The company's largest guru shareholder is Yacktman Asset Management with 0.25% of outstanding shares, followed by Pioneer Investments with 0.20%, PRIMECAP Management with 0.18% and Steven Cohen (Trades, Portfolio) with 0.01%.

Disclosure: I do not own any stocks mentioned.

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