6 Stocks Trading With Low Price-Earnings Ratios

Plains GP Holdings tops the list

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Oct 11, 2019
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As of Friday, 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 $3.35 billion, Plains GP Holdings LP (PAGP, Financial) is trading with a price-earnings ratio of 6.38. According to the DCF calculator, the stock has a fair value of $33.6 while trading at about $20.05. The price has fallen 16% over the last 12 months and is now 21.61% below the 52-week high and 5.58% above the 52-week low.

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The company, which provides transportation, storage and marketing services for the oil and gas industry, has a GuruFocus profitability and growth rating of 5 out of 10. While the return on equity of 27.26% is outperforming the sector, the return on assets of 1.81% is underperforming 70% of companies in the Oil and Gas – Midstream industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.04 is below the industry median of 0.06.

The company’s largest guru shareholder is Steven Cohen (Trades, Portfolio) with 0.38% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.31% and Michael Price (Trades, Portfolio) with 0.16%.

With a $3.29 billion market cap, Cia Paranaense De Energia Copel (ELP, Financial) is trading with a price-earnings ratio of 9.09. According to the DCF calculator, the stock has a fair value of $15.73 while trading at $12.04. The share price has risen 84% over the last 12 months. It is now trading 10.67% below the 52-week high and 88.11% above the 52-week low.

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GuruFocus gives the telecommunication services provider a profitability and growth rating of 7 out of 10. The return on equity of 9.66% and return on assets of 4.43% are outperforming 59% of companies in the Utilities – Regulated industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.22 is below the industry median of 0.23.

Simons’ firm is the company’s largest guru shareholder with 0.31% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.07%.

With a market cap of $3.27 billion, Bank OZK (OZK, Financial) is trading with a price-earnings ratio of 8.55 and a price-book ratio of 0.86. According to the DCF calculator, the stock has a fair value of $90.81 while trading at about $27. Shares have fallen 32% over the last 12 months and are now trading 34.17% below the 52-week high and 22.38% above the 52-week low.

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GuruFocus gives the bank a profitability and growth rating of 5 out of 10. The return on equity of 10.85% and return on assets of 1.82% are outperforming 63% of companies in the Banking industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 1.36 is above the industry median of 1.12.

The company’s largest guru shareholder is Diamond Hill Capital (Trades, Portfolio) with 4.87% of outstanding shares, followed by Simons’ firm with 0.27% and Lee Ainslie (Trades, Portfolio) with 0.20%.

Hancock Whitney Corp. (HWC, Financial) has a market cap of $3.23 billion and is trading with a price-earnings ratio of 8.99 and a price-book ratio of 0.90. According to the DCF calculator, the stock has a fair value of $42.59 while trading at $35.86. Shares have declined 23% over the last 12 months and are currently trading 26.58% below the 52-week high and 9.76% above the 52-week low.

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GuruFocus gives the financial services company a profitability and growth rating of 4 out of 10. The return on equity of 11.02% and return on assets of 1.23% are outperforming 66% of companies in the Retail – Banks industry. Its financial strength is rated 2 out of 10. The cash-debt ratio of 0.26 is below the industry median of 1.12.

With 0.54% of outstanding shares, Simons’ firm is the company’s largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.21% and Barrow, Hanley, Mewhinney & Strauss with 0.13%.

Parsons Corp. (PSN, Financial) has a market cap of $3.22 billion. Its shares are trading with a price-earnings ratio of 7.19 and a price-book ratio of 1.93. According to the DCF calculator, the stock has a fair value of $48.16 while trading at $32.36. Shares have risen 7.68% over a 12-month period and are currently trading 16.49% below the three-month high and 2.30% above the three-month low.

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The company has a GuruFocus profitability and growth rating of 2 out of 10. The return on equity of 28.21% and return on assets of 11.12% are outperforming 89% of companies in the Industrial Products industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.42 is below the industry median of 0.86.

The company’s largest guru shareholder is Jeff Ubben (Trades, Portfolio) with 1.82% of outstanding shares, followed by Daniel Loeb (Trades, Portfolio) with 0.30%.

Tegna Inc. (TGNA, Financial) has a market cap of $3.16 billion. Its shares are trading with a price-earnings ratio of 8.05 and a price-book ratio of 2.16. According to the DCF calculator, the stock has a fair value of $66.46 while trading at $14.52. Shares have risen 26.92% over a 12-month period and are currently trading 11.96% below the 52-week high and 42.54% above the 52-week low.

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The media company has a GuruFocus profitability and growth rating of 8 out of 10. The return on equity of 31.45% and return on assets of 7.82% are outperforming 80% of companies in the Entertainment industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.01 is below the industry median of 0.61.

The company’s largest guru shareholder is John Rogers (Trades, Portfolio) with 2.98% of outstanding shares, followed by Diamond Hill Capital with 2.46% and Jeremy Grantham (Trades, Portfolio) with 0.85%.

Disclosure: I do not own any stocks mentioned.

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