6 Stocks With Low Price-Sales Ratios

TJX Companies tops the list

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Jul 10, 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.

TJX Companies Inc. (TJX, Financial) is trading around $55 per share with a price-sales ratio of 1.73 and a price-earnings ratio of 22.36.

The discount retailer has a market cap of $67 billion. The stock has risen at an annualized rate of 22.01% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $50.13, suggesting it is overpriced by 9%. The Peter Lynch value gives the stock a fair price of $18.85.

The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 1.31% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 0.57% and Jeremy Grantham (Trades, Portfolio) with 0.32%.

Bank of Nova Scotia (BNS, Financial) is trading around $54 per share with a price-sales ratio of 2.98 and price-earnings ratio of 10.46.

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The Canadian bank has a market cap of $65.49 billion. The stock has risen at an annualized rate of 8.25% over the last 10 years.

The DCF calculator gives the stock a fair value of $65.72, suggesting it is undervalued with 17% margin of safety.

With 0.32% of outstanding shares, Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.07%, Ray Dalio (Trades, Portfolio) with 0.03% and Prem Watsa (Trades, Portfolio) with 0.02%.

Duke Energy Corp. (DUK, Financial) is trading around $90 with a price-sales ratio of 2.62 and a price-earnings ratio of 22.02.

The company, which operates in electric utilities, gas utilities and commercial renewables, has a market cap of $65.42 billion. The stock has risen at an annualized rate of 11.03% over the past decade.

The DCF calculator gives the company a fair value of $43.66, suggesting it is overpriced by 105%.

The company's largest guru shareholder is Simons' firm with 1.12% of outstanding shares, followed by the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.15% and Pioneer Investments with 0.06%.

Prudential PLC (PUK, Financial) is trading around $43.5 with a price-sales ratio of 1.78 and a price-earnings ratio of 15.16.

The life insurance company has a market cap of $57.12 billion. The stock has risen at an annualized rate of 16.44% over the last 10 years.

The DCF calculator gives the company a fair value of $32.21, suggesting it is overvalued by 34%. The Peter Lynch value gives the stock a fair value of $35.81.

The company's largest guru shareholder is Sarah Ketterer (Trades, Portfolio) with 0.08% of outstanding shares, followed by Simons' firm with 0.04%.

Northrop Grumman Corp. (NOC, Financial) is trading around $325 with a price-sales ratio of 1.80 and a price-earnings ratio of 16.85.

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The company, which operates aerospace and technology systems, has a market cap of $55.32 billion. The stock has risen at an annualized rate of 24.62% over the past decade.

The DCF calculator gives the company a fair value of $206.97, suggesting it is overpriced by 58%. The Peter Lynch value gives the stock a fair price of $306.

The company's largest guru shareholder is Steven Cohen (Trades, Portfolio) with 0.12% of outstanding shares, followed by Simons with 0.11% and Joel Greenblatt (Trades, Portfolio) with 0.09%.

Allergan PLC (AGN, Financial) is trading around $167 with a price-sales ratio of 3.57 and a forward price-earnings ratio of 10.02.

The pharmaceutical company has a market cap of $54.57 billion. The stock has risen at an annualized rate of 17.93% over the last 10 years.

The company's largest guru shareholder is the Vanguard Health Care Fund (Trades, Portfolio) with 4.84% of outstanding shares, followed by Seth Klarman (Trades, Portfolio) with 1.46% and David Tepper (Trades, Portfolio) with 0.96%.

Disclosure: I do not own any stocks mentioned.

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