As of Tuesday, the GuruFocus All-in-One Screener found 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 $44.43 billion, MetLife Inc. (MET, Financial) is trading with a price-earnings ratio of 7.79. According to the DCF calculator, the stock has a fair value of $65.17 while trading at about $47.44. The price was stable over the last 12 months and is now 7.27% below the 52-week high and 25.64% above the 52-week low.
GuruFocus gives the life insurance company a profitability and growth rating of 3 out of 10. The return on equity of 10.56% and return on assets of 0.86% are outperforming 62% of companies in the Insurance – Life industry. Its financial strength is rated 4.4 out of 10. The cash-debt ratio of 1.11 is below the industry median of 2.32.
The company’s largest guru shareholder is Dodge & Cox with 4.97% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 1.04% and Richard Pzena (Trades, Portfolio with 0.77%.
With a $44.04 billion market cap, Biogen Inc. (BIIB, Financial) is trading with a price-earnings ratio of 8.88. According to the DCF calculator, the stock has a fair value of $765.23 while trading at $238.79. The share price has declined 31% over the last 12 months. It is now trading 33.38% below the 52-week high and 10.67% above the 52-week low.
GuruFocus gives the company a profitability and growth rating of 10 out of 10. The return on equity of 40.2% and return on assets of 20.77% are outperforming 95% of companies in the Drug Manufacturers industry. Its financial strength is rated 6.5 out of 10. The cash-debt ratio of 0.46 is below the industry median of 1.17.
PRIMECAP Management (Trades, Portfolio) is the company’s largest guru shareholder 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%.
With a market cap of $43.62 billion, Capital One Financial Corp. (COF, Financial) is trading with a price-earnings ratio of 8.02 and a price-book ratio of 0.78. According to the DCF calculator, the stock has a fair value of $329.09 while trading at about $92.74. Shares have fallen 4.99% over the last 12 months and are now trading 7.31% below the 52-week high and 32.68% above the 52-week low.
GuruFocus gives financial services company a profitability and growth rating of 4 out of 10. While the return on equity of 1.57% is outperforming the sector, the return on assets of 10.8% is underperforming 58% of companies in the Credit Services industry. Its financial strength is rated 3.6 out of 10. The cash-debt ratio of 0.31 is above the industry median of 0.19.
The company’s largest guru shareholder is Dodge & Cox with 8.80% of outstanding shares, followed by Chris Davis (Trades, Portfolio) with 2.94% and Bill Nygren (Trades, Portfolio) with 1.22%.
UBS Group AG (UBS, Financial) has a market cap of $42.42 billion and is trading with a price-earnings ratio of 9.85 and a price-book ratio of 0.80. According to the DCF calculator, the stock has a fair value of $12.63 while trading at $11.45. Shares have declined 30.18% over the last 12 months and are currently trading 31.15% below the 52-week high and 13.14% above the 52-week low.
GuruFocus gives the Swiss bank a profitability and growth rating of 3 out of 10. The return on equity of 7.97% and return on assets of 0.44% are underperforming 78% of companies in the Banks industry. Its financial strength is rated 3.4 out of 10. The cash-debt ratio of 0.55 is below the industry median of 1.11.
With 3.53% of outstanding shares, Dodge & Cox is the company’s largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 1.40% and Charles Brandes (Trades, Portfolio) with 0.57%.
ING Groep NV (ING, Financial) has a market cap of $41.64 billion. Its shares are trading with a price-earnings ratio of 9.83 and a price-book ratio of 0.76. According to the DCF calculator, the stock has a fair value of $11.99 while trading at $10.69. Shares have fallen 20% over a 12-month period and are currently trading 22.37% below the 52-week high and 15.94% above the 52-week low.
The financial institution has a GuruFocus profitability and growth rating of 3 out of 10. The return on equity of 7.89% and return on assets of 0.43% are underperforming 79% of companies in the Banks industry. Its financial strength is rated 3.2 out of 10. The cash-debt ratio of 0.39 is above the industry median of 1.11.
The company’s largest guru shareholder is Fisher with 0.93% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.10% and Sarah Ketterer (Trades, Portfolio) with 0.03%.
Occidental Petroleum Corp. (OXY, Financial) has a market cap of $40.88 billion. Its shares are trading with a price-earnings ratio of 9.05 and a price-book ratio of 1.60. According to the DCF calculator, the stock has a fair value of $54.04 while trading at $45.7. Shares have declined 43% over a 12-month period and are currently trading 45.17% below the 52-week high and 9.26% above the 52-week low.
The oil and gas producer has a GuruFocus profitability and growth rating of 7 out of 10. While the return on equity of 17.99% and return on assets of 8.65% are outperforming 72% of companies Oil and Gas - E&P industry. Its financial strength is rated 5.5 out of 10. The cash-debt ratio of 0.16 is below the industry median of 0.76.
The company’s largest guru shareholder is Dodge & Cox with 6.08% of outstanding shares, followed by Carl Icahn (Trades, Portfolio) with 3.72% and the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.63%.
Disclosure: I do not own any stocks mentioned.
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