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.
Spectrum Brands Holdings
With a market cap of $3.09 billion, Spectrum Brands Holdings Inc. (SPB, Financial) is trading with a price-earnings ratio of 7.1. According to the DCF calculator, the stock has a fair value of $40.13 while trading at about $63.26. The share price has risen 35.23% over the last 12 months and is now 4.87% below the 52-week high and 56.04% above the 52-week low.
The consumer products producer has a GuruFocus profitability and growth rating of 4 out of 10. The return on equity of 27.85% and return on assets of 7.52% are outperforming 77% of companies in the consumer packaged goods industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.07 is below the industry median of 0.40.
The company’s largest guru shareholder is Richard Pzena (Trades, Portfolio) with 3.89% of outstanding shares, followed by Steven Romick (Trades, Portfolio) with 0.87% and Joel Greenblatt (Trades, Portfolio) with 3.18%.
Evercore
With a $3.02 billion market cap, Evercore Inc. (EVR, Financial) is trading with a price-earnings ratio of 9.55. According to the DCF calculator, the stock has a fair value of $86.47 while trading at $77.15. The share price was stable over the past 12 months.
GuruFocus gives the investment bank a profitability and growth rating of 4 out of 10. The return on equity of 48.09% and return on assets of 18% are outperforming 78% of companies in the capital markets industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.51 is below the industry median of 2.75.
Steven Cohen (Trades, Portfolio) is the company’s largest guru shareholder with 1.25% of outstanding shares, followed by Hotchkis & Wiley with 0.93% and Ken Fisher (Trades, Portfolio) with 0.33%.
Brooks Automation
With a market cap of $2.97 billion, Brooks Automation Inc. (BRKS, Financial) is trading with a price-earnings ratio of 6.81 and a price-book ratio of 2.62. According to the DCF calculator, the stock has a fair value of $1.5 while trading at about $41.14. Shares have climbed 53.91% over the last 12 months and are now trading 18.29% below the 52-week high and 78.71% above the 52-week low.
GuruFocus gives the semiconductor manufacturing company a profitability and growth rating of 6 out of 10. The return on equity of 53.97% and return on assets of 30.87% are outperforming 97% of companies in the semiconductors industry. Its financial strength is rated 8 out of 10. The cash-debt ratio of 6.57 is far above the industry median of 1.33.
The company’s largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 3.24% of outstanding shares, followed by Fisher with 1.88% and Chuck Royce (Trades, Portfolio) with 1.66%.
Texas Capital Bancshares
Texas Capital Bancshares Inc. (TCBI, Financial) has a market cap of $3.17 billion and is trading with a price-earnings ratio of 10.1 and a price-book ratio of 1.22. According to the DCF calculator, the stock has a fair value of $175.93 while trading at $63. Shares have risen 5.33% over the last 12 months and are currently trading 13.09% below the 52-week high and 20.96% above the 52-week low.
GuruFocus gives the bank a profitability and growth rating of 5 out of 10. The return on equity of 12.03% and return on assets of 1.09% are outperforming 58% of companies in the banks industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 1.79 is above the industry median of 1.13.
With 2.24% of outstanding shares, Barrow, Hanley, Mewhinney & Strauss is the company’s largest guru shareholder, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.87%, NWQ Managers (Trades, Portfolio) with 0.83%, Fisher with 0.47% and Royce with 0.25%.
Seaspan
Seaspan Corp. (SSW, Financial) has a market cap of $2.96 billion. Its shares are trading with a price-earnings ratio of 8.02 and a price-book ratio of 0.92. According to the DCF calculator, the stock has a fair value of $18.3 while trading at $13.26. Shares have advanced 42% over a 12-month period and are currently trading 1.19% below the three-month high and 80.41% above the three-month low.
The company, which provides marine-related services to the Pacific Northwest, has a GuruFocus profitability and growth rating of 6 out of 10. The return on equity of 12.2% and return on assets of 5.3% are outperforming 70% of companies in the transportation industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.07 is below the industry median of 0.27.
The company’s largest guru shareholder is Prem Watsa (Trades, Portfolio) with 43.62% of outstanding shares, followed by Simons’ firm with 1.09% and John Hussman (Trades, Portfolio) with 0.06%.
Granite Real Estate Investment Trust
Granite Real Estate Investment Trust (GRP.U, Financial) has a market cap of $2.81 billion. Its shares are trading with a price-earnings ratio of 8.56 and a price-book ratio of 1.29. According to the DCF calculator, the stock has a fair value of $63.78 while trading at $51.73. Shares have risen 29% over a 12-month period and are currently trading 1.47% below the 52-week high and 42% above the 52-week low.
The real estate investment trust has a GuruFocus profitability and growth rating of 7 out of 10. The return on equity of 14.52% and return on assets of 9.1% are outperforming 88% of companies in the REIT industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.37 is above the industry median of 0.06.
The company’s largest guru shareholder is Simons’ firm with 1.14% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.04%.
Disclosure: I do not own any stocks mentioned.
Read more here:
- 5 Guru Stocks Trading Below Peter Lynch Value
- 6 Companies With High Dividend Yields
- 5 Companies Boosting Book Value
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