6 Cheap Stocks With Low Price-Earnings Ratios

Oshkosh tops the list

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Oct 02, 2019
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As of Wednesday, 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 $4.98 billion, Oshkosh Corp. (OSK, Financial) is trading with a price-earnings ratio of 8.98. According to the DCF calculator, the stock has a fair value of $86.68 while trading at about $72. The price was stable over the last 12 months and is now 15.78% below the 52-week high and 41.60% above the 52-week low.

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GuruFocus gives the manufacturer of specialty vehicles a profitability and growth rating of 7 out of 10. The return on equity of 23.34% and return on assets of 10.95% are outperforming 85% of companies in the Truck Manufacturing industry. Its financial strength is rated 6.8 out of 10. The cash-debt ratio of 0.19 is below the industry median of 0.27.

The company’s largest guru shareholder is Mairs and Power (Trades, Portfolio) with 0.27% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.09% and Lee Ainslie (Trades, Portfolio) with 0.06%.

With a $5 billion market cap, Turkcell Iletisim Hizmetleri AS (TKC, Financial) is trading with a price-earnings ratio of 10.09. According to the DCF calculator, the stock has a fair value of $4.49 while trading at $5.64. The share price has risen 14% over the last 12 months. It is now trading 21.23% below the 52-week high and 29.06% above the 52-week low.

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GuruFocus gives the Turkish mobile telephone services provider a profitability and growth rating of 8 out of 10. The return on equity of 17.5% and return on assets of 6.33% are outperforming 76% of companies in the Communication Services industry. Its financial strength is rated 4.2 out of 10. The cash-debt ratio of 0.5 is above the industry median of 0.31.

NWQ Managers (Trades, Portfolio) is the company’s largest guru shareholder with 0.15% of outstanding shares, followed by Charles Brandes (Trades, Portfolio) with 0.04% and Jeremy Grantham (Trades, Portfolio) with 0.01%.

With a market cap of $4.82 billion, OneMain Holdings Inc. (OMF, Financial) is trading with a price-earnings ratio of 7.15 and a price-book ratio of 1.17. According to the DCF calculator, the stock has a fair value of $52.01 while trading at about $35.4. Shares have risen 6.31% over the last 12 months and are now trading 18.21% below the 52-week high and 57.54% above the 52-week low.

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GuruFocus gives the finance company a profitability and growth rating of 4 out of 10. The return on equity of 17.4% and return on assets of 3.23% are outperforming 61% of companies in the Credit Services industry. Its financial strength is rated 2.8 out of 10. The cash-debt ratio of 0.09 is below the industry median of 0.2.

The company’s largest guru shareholder is Steven Cohen (Trades, Portfolio) with 0.56% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.27% and Ainslie with 0.10%.

Macy's Inc. (M, Financial) has a market cap of $4.80 billion and is trading with a price-earnings ratio of 4.71 and a price-book ratio of 0.77. According to the DCF calculator, the stock has a fair value of $35.53 while trading at $14.9. Shares have declined 53% over the last 12 months and are currently trading 59.45% below the 52-week high and 9.51% above the 52-week low.

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GuruFocus gives the retailer a profitability and growth rating of 5 out of 10. The return on equity of 16.7% and return on assets of 5.11% are outperforming 67% of companies in the Retail - Apparel and Specialty industry. Its financial strength is rated 5.1 out of 10. The cash-debt ratio of 0.09 is below the industry median of 0.49.

With 3.58% of outstanding shares, Yacktman Asset Management (Trades, Portfolio) is the company’s largest guru shareholder, followed by the Yacktman Focused Fund (Trades, Portfolio) with 1.13% and Ray Dalio (Trades, Portfolio) with 0.67%.

Essent Group Ltd. (ESNT, Financial) has a market cap of $4.71 billion. Its shares are trading with a price-earnings ratio of 9.01 and a price-book ratio of 1.72. According to the DCF calculator, the stock has a fair value of $55.43 while trading at $46.5. Shares have risen 9.84% over a 12-month period and are currently trading 8% below the 52-week high and 54.02% above the 52-week low.

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The American mortgage insurance company has a GuruFocus profitability and growth rating of 3 out of 10. The return on equity of 21.34% and return on assets of 16.01% are underperforming 93% of companies in the Banking industry. Its financial strength is rated 4.8 out of 10. The cash-debt ratio of 0.11 is below the industry median of 1.15.

The company’s largest guru shareholder is Simons’ firm with 1.20% of outstanding shares, followed by Ron Baron (Trades, Portfolio) with 0.80% and Grantham with 0.26%.

Cimarex Energy Co. (XEC, Financial) has a market cap of $4.60 billion. Its shares are trading with a price-earnings ratio of 7.30 and a price-book ratio of 1.17. According to the DCF calculator, the stock has a fair value of $66.46 while trading at $45. Shares have declined 53% over a 12-month period and are currently trading 55.21% below the 52-week high and 21.86% above the 52-week low.

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The independent oil and gas producer has a GuruFocus profitability and growth rating of 6 out of 10. The return on equity of 17.3% and return on assets of 9.21% are outperforming 84% of companies in the Oil and Gas - E&P industry. Its financial strength is rated 4.9 out of 10. The cash-debt ratio of 0.01 is below the industry median of 0.80.

The company’s largest guru shareholder is Diamond Hill Capital (Trades, Portfolio) with 7.24% of outstanding shares, followed by Charles de Vaulx (Trades, Portfolio) with 1.91% and Ray Dalio (Trades, Portfolio) with 0.79%.

Disclosure: I do not own any stocks mentioned.

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