As of Wednesday, 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 $10.04 billion, SVB Financial Group (SIVB, Financial) is trading with a price-earnings ratio of 9.05. According to the DCF calculator, the stock has a fair value of $614.35 while trading at about $200. The price has fallen 36% over the last 12 months and is now 39.41% below the 52-week high and 13.51% above the 52-week low.
GuruFocus gives the financial services company a profitability and growth rating of 2 out of 10. The return on equity of 22.42% and return on assets of 1.95% are outperforming 93% of companies in the banking industry. Its financial strength is rated 4.8 out of 10. The cash-debt ratio of 9.84 is above the industry median of 1.13.
The company’s largest guru shareholder is Ken Fisher (Trades, Portfolio) with 1.97% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) 0.91% and Diamond Hill Capital (Trades, Portfolio) with 0.46%.
With a $9.50 billion market cap, Devon Energy Corp. (DVN, Financial) is trading with a price-earnings ratio of 2.81 and a price-book ratio of 1.38. According to the DCF calculator, the stock has a fair value of $29.43 while trading at $24.39. The share price declined 42% over the last 12 months. It is now trading 44.13% below the 52-week high and 19.59% above the 52-week low.
GuruFocus gives the oil company a profitability and growth rating of 4 out of 10. The return on equity of 47.18% and return on assets of 18.64% are outperforming 82% of companies in the Oil and Gas - E&P industry. Its financial strength is rated 5.6 out of 10. The cash-debt ratio of 0.76 is slightly below the industry median of 0.77.
Paul Singer (Trades, Portfolio) is the company’s largest guru shareholder with 3.97% of outstanding shares, followed by Diamond Hill Capital with 1.67% and Fisher with 0.56%.
With a market cap of $9.34 billion, Comerica Inc. (CMA, Financial) is trading with a price-earnings ratio of 8.07 and a price-book ratio of 1.36. According to the DCF calculator, the stock has a fair value of $83.37 while trading at about $60. Shares have declined 35% over the last 12 months and are now trading 37.49% below the 52-week high and 3.56% above the 52-week low.
GuruFocus gives the financial services company a profitability and growth rating of 2 out of 10. The return on equity of 16.51% and return on assets of 1.77% are outperforming 83% of companies in the banking industry. Its financial strength is rated 3.2 out of 10. The cash-debt ratio of 0.43 is below the industry median of 1.13.
The company’s largest guru shareholder is Pioneer Investments with 0.52% of outstanding shares, followed by Third Avenue Management (Trades, Portfolio) with 0.28% and the Third Avenue Value Fund (Trades, Portfolio) with 0.22%.
DXC Technology Co. (DXC, Financial) has a market cap of $8.89 billion and is trading with a price-earnings ratio of 7.78 and a price-book ratio of 0.83. According to the DCF calculator, the stock has a fair value of $46.77 while trading at $32. Shares have declined 65% over the last 12 months and are currently trading 70.15% below the 52-week high.
GuruFocus gives the provider of vendor-independent IT services a profitability and growth rating of 5 out of 10. The return on equity of 10.67% and return on assets of 4.18% are underperforming 72% of companies in the Application Software industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.17 is below the industry median of 3.13.
With 4.10% of outstanding shares, Larry Robbins (Trades, Portfolio) is the company’s largest guru shareholder, followed by Lee Ainslie (Trades, Portfolio) with 2.0% and Bill Nygren (Trades, Portfolio) with 1.45%.
Santander Consumer USA Holdings Inc. (SC, Financial) has a market cap of $9.12 billion. Its shares are trading with a price-earnings ratio of 9.75 and a price-book ratio of 1.22. According to the DCF calculator, the stock has a fair value of $28.68 while trading at $26.47. Shares have gained 27% over a 12-month period and are currently trading 5.01% below the 52-week high and 63.73% above the 52-week low.
The consumer finance company has a GuruFocus profitability and growth rating of 2 out of 10. The return on equity of 13.33% and return on assets of 2.17% are outperforming 78% of companies in the banking industry. Its financial strength is rated 2 out of 10. The cash-debt ratio of 0.16 is above the industry median of 0.1.
The company’s largest guru shareholder is Steven Cohen (Trades, Portfolio) with 0.80% of outstanding shares, followed by Hotchkis & Wiley with 0.24% and Caxton Associates (Trades, Portfolio) with 0.14%.
Disclosure: I do not own any stocks mentioned.
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