6 Stocks With Low Price-Sales Ratios

FedEx tops the list

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Sep 05, 2019
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According to the GuruFocus All-in-One Screener as of Thursday, the following companies look cheap since they are trading with low price-sales ratios.

FedEx Corp. (FDX, Financial) is trading around $164 per share with a price-sales ratio of 0.60 and a price-earnings ratio of 88.66.

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The express courier service has a market cap of $41.49 billion. The stock has risen at an annualized rate of 9.16% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $42.91, suggesting it is overpriced by 270%. The Peter Lynch value gives the stock a fair price of $27.75.

The company's largest guru shareholder is Dodge & Cox with 8.66% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 5.73% and Bill Gates (Trades, Portfolio)’ foundation trust with 1.16%.

Marriott International Inc. (MAR, Financial) is trading around $128 per share with a price-sales ratio of 2.21 and price-earnings ratio of 30.81.

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The company has a market cap of $42 billion. The stock has risen at an annualized rate of 20.04% over the last 10 years.

The DCF calculator gives the stock a fair value of $43.66, suggesting it is overpriced by 187%. The Peter Lynch value gives the stock a fair price of $61.2.

With 0.83% of outstanding shares, Spiros Segalas (Trades, Portfolio) is the company's largest guru shareholder, followed by Tom Gayner (Trades, Portfolio) with 0.47% and PRIMECAP Management with 0.32%.

Biogen Inc. (BIIB, Financial) is trading around $225 with a price-sales ratio of 3.07 and a price-earnings ratio of 8.16.

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The company has a market cap of $41.40 billion. The stock has risen at an annualized rate of 16.66% over the past decade.

The DCF calculator gives the company a fair value of $765.23, suggesting it is undervalued with a 71.34% of margin of safety. The Peter Lynch value gives the stock a fair price of $403.2.

The company's largest guru shareholder is PRIMECAP Management with 7.38% of outstanding shares, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 1.41% and Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 1.26%.

Bank of New York Mellon Corp. (BK, Financial) is trading around $43 with a price-sales ratio of 2.70 and a price-earnings ratio of 11.20.

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The global investment bank has a market cap of $40 billion. The stock has risen at an annualized rate of 5.67% over the last 10 years.

The DCF calculator gives the company a fair value of $41.2, suggesting it is overvalued by 1.73%. The Peter Lynch value gives the stock a fair price of $58.05.

The company's largest guru shareholder is Warren Buffett (Trades, Portfolio) with 8.59% of outstanding shares, followed by Dodge & Cox with 4.92% and First Eagle Investment (Trades, Portfolio) with 1.93%.

Ross Stores Inc. (ROST, Financial) is trading around $108 with a price-sales ratio of 2.52 and a price-earnings ratio of 24.08.

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The off-price apparel and home fashions retail chain has a market cap of $38.65 billion. The stock has risen at an annualized rate of 25.12% over the past decade.

The DCF calculator gives the company a fair value of $120.39, suggesting it is undervalued with an 11% of margin of safety. The Peter Lynch value gives the stock a fair price of $66.

The company's largest guru shareholder is PRIMECAP Management with 3.18% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 1.23% and Daniel Loeb (Trades, Portfolio) with 0.45%.

Sysco Corp. (SYY, Financial) is trading around $75.1 with a price-sales ratio of 0.65 and a price-earnings ratio of 23.46.

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The foodservice distributor has a market cap of $38.52 billion. The stock has risen at an annualized rate of 12.93% over the last 10 years.

The DCF calculator gives the company a fair value of $34.25, suggesting it is overpriced by 119%. The Peter Lynch value gives the stock a fair price of $48.

The company's largest guru shareholder is Yacktman Asset Management (Trades, Portfolio) with 0.80% of outstanding shares, followed by the Yacktman Fund (Trades, Portfolio) with 0.39% and Pioneer Investments with 0.21%.

Disclosure: I do not own any stocks mentioned.

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