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Tiziano Frateschi
Tiziano Frateschi
Articles (2114)  | Author's Website |

5 Cheap Stocks With Low Price-Earnings Ratios

Micron on the list

July 24, 2019 | About:

The following stocks have low price-earnings ratios and have been bought by gurus. While some of them are great investments, others need to be checked again, according to the discounted cash flow calculator.

With a market cap of $1.33 billion, Southwestern Energy Co. (SWN) is trading with a price-earnings ratio of 1.47. According to the DCF calculator, the stock has a fair value of $17.98 while trading at $2.46. The price tanked 53% over the last 12 months and is now 60.51% below the 52-week high and 4.24% above the 52-week low.

GuruFocus gives the independent exploration and production company a profitability and growth rating of 5 out of 10. The return on equity of 38.59% and return on assets of 13.55% are underperforming 58% of companies in the Oil and Gas - E&P industry. Its financial strength is rated 5.4 out of 10. The cash-debt ratio of 0.16 is below the industry median of 0.74.

The company’s largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 2.52% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.85% and Ray Dalio (Trades, Portfolio)’s Bridgewater Associates with 0.59%.

With a $1.33 billion market cap, Warrior Met Coal Inc. (HCC) is trading with a price-earnings ratio of 2.06 and a price-book ratio of 1.59. According to the DCF calculator, the stock has a fair value of $128.1 while trading at $25.76. The price declined 8.39% over the last 12 months. It is currently 23.08% below the 52-week high and 23.37% above the 52-week low.

GuruFocus gives the producer and exporter of metallurgical coal a profitability and growth rating of 6 out of 10. The return on equity of 112.35% and return on assets of 50.47% are outperforming 93% of companies in the Coal industry. Its financial strength is rated 6.7 out of 10. The cash-debt ratio of 0.5 is slightly below the industry median of 0.56.

Third Avenue Management (Trades, Portfolio) is the company’s largest guru shareholder with 3.81% of outstanding shares followed by Third Avenue Value Fund (Trades, Portfolio) with 3.04% and Lee Ainslie (Trades, Portfolio)’s Maverick Capital with 0.47%.

With a market cap of $51.82 billion, Micron Technology Inc. (MU) is trading with a price-earnings ratio of 5.5 and a price-book ratio of 1.47. According to the DCF calculator, the stock has a fair value of $91.28 while trading at $46.95. Shares have declined 13% over the last 12 months and are currently trading 15.25% below the 52-week high and 65.38% above the 52-week low.

GuruFocus gives the provider of DRAM and NAND flash memory a profitability and growth rating of 9 out of 10. The return on equity of 30.59% and return on assets of 22.53% are outperforming 96% of companies in the Semiconductors industry. Its financial strength is rated 7.8 out of 10. The cash-debt ratio of 1.36 is below the industry median of 1.5.

The company’s largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 5.22% of outstanding shares followed by David Tepper (Trades, Portfolio)’s Appaloosa with 1.74%.

Athene Holding Ltd. (ATH) has a market cap of $8.23 billion and is trading with a price-earnings ratio of 5.56 and a price-book ratio of 0.81. According to the DCF calculator, the stock has a fair value of $82.08 while trading at $42.52. Shares have declined 4.79% over the last 12 months and are currently trading 21.14% below the 52-week high and 14.30% above the 52-week low.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. While the return on equity of 16.71% is outperforming the sector, the return on assets of 1.28% is underperforming 63% of companies in the Insurance industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 3.05 is below the industry median of 11.29.

With 0.41% of outstanding shares, Richard Snow (Trades, Portfolio) is the company’s largest guru shareholder, followed by Caxton Associates (Trades, Portfolio) with 0.13% and Pioneer Investments (Trades, Portfolio) with 0.09%.

Teck Resources Ltd. (TECK) has a market cap of $12.81 billion. Its shares are trading with a price-earnings ratio of 5.79 and a price-book ratio of 0.72. According to the DCF calculator, the stock has a fair value of $41.74 while trading at $22.67. Shares have declined 7.39% over a 12-month period and are currently trading 14.13% below the 52-week high and 24.77% above the 52-week low.

The diversified miner has a GuruFocus profitability and growth rating of 8 out of 10. The return on equity of 13.49% and return on assets of 7.57% are outperforming 79% of companies in the Metals and Mining industry. Its financial strength is rated 6.2 out of 10. The cash-debt ratio of 0.37 is below the industry median.

The company’s largest guru shareholder is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.41% of outstanding shares, followed by Louis Moore Bacon (Trades, Portfolio) with 0.24% and Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.12%.

Disclosure: I do not own any stocks mentioned.

Read more here: 

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FPA Capital Continues to Buy Cheesecake Factory 

The Parnassus Fund Exits Mattel, Sells Alphabet 

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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