As of Wednesday, the GuruFocus All-in-One Screener found the following stocks that 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.
Vornado Realty Trust
With a market cap of $12.54 billion, Vornado Realty Trust (VNO) is trading with a price-earnings ratio of 4.18. According to the DCF calculator, the stock has a fair value of $168.34 per share while trading at about $65. The price has fallen 6.91% over the last 12 months and is now 9.38% below the 52-week high and 12.12% above the 52-week low.
The U.S. real estate investment trust has a GuruFocus profitability and growth rating of 6 out of 10. The return on equity of 55.19% and return on assets of 17.43% are outperforming 93% of companies in the REITs industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.14 is above the industry median of 0.06.
The company’s largest guru shareholder is Paul Singer (Trades, Portfolio) with 0.27% of outstanding shares, followed by Third Avenue Management (Trades, Portfolio) with 0.21%.
Centrais Eletricas Brasileiras SA
With a $12.43 billion market cap, Centrais Eletricas Brasileiras SA (EBR) is trading with a price-earnings ratio of 2.67. According to the DCF calculator, the stock has a fair value of $35.53 per share while trading at $8.80. The share price has risen 52.91% over the last 12 months.
GuruFocus gives the Brazilian electric utility company a profitability and growth rating of 5 out of 10. The return on equity of 34.96% and return on assets of 10.25% are outperforming 92% of companies in the regulated utilities industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.34 is above the industry median of 0.24.
Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company’s largest guru shareholder with 0.06% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.04%.
Ally Financial Inc.
With a market cap of $11.94 billion, Ally Financial Inc. (ALLY) is trading with a price-earnings ratio of 7.76 and a price-book ratio of 0.85. According to the DCF calculator, the stock has a fair value of $43.34 per share while trading at about $31. Share prices have risen 22.89% over the last 12 months and are now trading 11.32% below the 52-week high and 52.48% above the 52-week low.
GuruFocus gives the diversified financial services firm a profitability and growth rating of 3 out of 10. While the return on equity of 11.82% is outperforming the sector, return on assets of 0.91% is underperforming 65% of companies in credit services. Its financial strength is rated 2 out of 10. The cash-debt ratio of 0.09 is below the industry median of 0.18.
The company’s largest guru shareholder is Bill Nygren (Trades, Portfolio)’s Oakmark Fund with 4.33% of outstanding shares, followed by Howard Marks (Trades, Portfolio)’ Oaktree Capital with 2.80% and First Pacific Advisors (Trades, Portfolio) with 2.17%.
Comerica Inc.
Comerica Inc. (CMA) has a market cap of $10.30 billion and is trading with a price-earnings ratio of 8.86 and a price-book ratio of 1.47. According to the DCF calculator, the stock has a fair value of $84.44 while trading at $70.30. Shares have fallen 13% over the last 12 months and are trading 19.67% below the 52-week high and 22.07% above the 52-week low.
GuruFocus gives the financial services company a profitability and growth rating of 4 out of 10. The return on equity of 16.55% and return on assets of 1.73% are outperforming 85% of companies in the banks industry. Its financial strength is rated 2 out of 10. The cash-debt ratio of 0.56 is below the industry median of 1.16.
With 0.64% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company’s largest guru shareholder, followed by Third Avenue Management (Trades, Portfolio) with 0.28% and Ray Dalio (Trades, Portfolio)’s Bridgewater Associates with 0.14%.
Whirlpool Corp
Whirlpool Corp. (WHR) has a market cap of $9.86 billion. Its shares are trading with a price-earnings ratio of 9.42 and a price-book ratio of 3.31. According to the DCF calculator, the stock has a fair value of $177.22 per share while trading at $151. Share prices have risen 33% over a 12-month period and are trading 4.71% below the three-month high and 56.88% above the three-month low.
The company has a GuruFocus profitability and growth rating of 7 out of 10. The return on equity of 40.29% and return on assets of 5.59% are outperforming 63% of companies in the furnishings, fixtures and appliances industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.16 is below the industry median of 0.79.
The company’s largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 12.29% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 1.82% and Tom Gayner (Trades, Portfolio)’s Markel Corp with 0.41%.
NRG Energy Inc.
NRG Energy Inc. (NRG) has a market cap of $9.70 billion. Its shares are trading with a price-earnings ratio of 10.04. According to the DCF calculator, the stock has a fair value of $23.76 per share while trading at $39. Shares were stable over a 12-month period and are currently trading 11.73% below the 52-week high and 18.11% above the 52-week low.
The U.S. independent power producer has a GuruFocus profitability and growth rating of 5 out of 10. The return on assets of 10.37% is outperforming 79% of companies in the in the independent power producers industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.04 is below the industry median of 0.17.
The company’s largest guru shareholder is the Simons with 0.60% of outstanding shares, followed by Leon Cooperman (Trades, Portfolio)’s Omega Advisors with 0.41% and HOTCHKIS & WILEY with 0.29%.
Disclosure: I do not own any stocks mentioned.
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