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5 Stocks With Low Price-Sales Ratios

- By Tiziano Frateschi

According to the GuruFocus All-in-One Screener, the following stocks with market caps over $5 billion look cheap since they are trading with low price-sales ratios.


Olin Corp. (OLN) is trading around $30.27 with a price-sales ratio of 0.8, a price-earnings ratio of 8.2 and a forward price-earnings ratio of 11.6. The company has a market cap of $5.06 billion and the stock price has risen at an annualized rate of 5% over the last 10 years.

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The company manufactures chlorine, sodium hydroxide and ammunition. The discounted cash flow calculator gives the stock a fair value of $39.38, suggesting it is undervalued by 23%. The Peter Lynch earnings line also suggests the stock is undervalued, giving it a fair value of $55.2.

Andreas Halvorsen (Trades, Portfolio) is the company's largest shareholder among the gurus with 2.8% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.88% and Mario Gabelli (Trades, Portfolio) with 0.07%.

UMB Financial Corp. (UMBF) is trading around $75.70 with a price-sales ratio of 4.07, a price-earnings ratio of 13.8 and a forward price-earnings ratio of 15.8. The company has a market cap of $3.79 billion and the stock price has risen at an annualized rate of 5% over the past decade.

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The company provides financial solutions. The discounted cash flow calculator gives the stock a fair value of $44.84, suggesting it is overpriced by 69%. The Peter Lynch earnings line gives the stock a fair value of $59.70.

The largest shareholder of the company among the gurus is Barrow, Hanley, Mewhinney & Strauss with 1.86% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 1.21% and Third Avenue Management (Trades, Portfolio) with 0.6%.

Embotelladora Andina SA (AKO-A) is trading around $18.6 with a price-sales ratio of 1.13, a price-earnings ratio of 16.54 and a forward price-earnings ratio of 17.4. The company has a market cap of $2.93 billion and the stock price has risen at an annualized rate of 5% over the last 10 years.

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The Latin American company, which bottles Coca-Cola products, has a fair value of $13.18 according to the discounted cash flow calculator, suggesting it is overpriced by 46%. The Peter Lynch earnings line gives the stock a fair value of $18.30.

Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder with 0.1% of outstanding shares.

TransCanada Corp. (TRP) is trading around $42.16 with a price-sales ratio of 3.6, a price-earnings ratio of 16.2 and a forward price-earnings ratio of 15.1. The company has a market cap of $38.49 billion and the stock price has risen at an annualized rate of 5.1% over the past decade.

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TransCanada operates as an energy infrastructure company. The discounted cash flow calculator gives the stock a fair value of $28.36, suggesting it is overpriced by 49%. The Peter Lynch earnings line suggests the stock is fairly priced, giving it a fair value of $39.8.

The largest guru shareholder of the company is the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.55% of outstanding shares, followed by Simons with 0.06%, Pioneer Investments (Trades, Portfolio) with 0.05% and Ray Dalio (Trades, Portfolio)'s Bridgewater Associates with 0.04%.

The Medicines Co. (MDCO) is trading around $36.5 with a price-sales ratio of 231.74, which is underperforming 98% of competitors. The company has a market cap of $2.7 billion and the stock price has risen at an annualized rate of 5.1% over the last 10 years.

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The biopharmaceutical company supplies transformational solutions for patients' most pressing health care needs.

The company's largest guru shareholder is the Vanguard Health Care Fund (Trades, Portfolio) with 7.54% of outstanding shares, followed by Lee Ainslie (Trades, Portfolio) with 1.63% and David Einhorn (Trades, Portfolio) with 1.36%.

Disclosure: I do not own any stocks mentioned in this article.

This article first appeared on GuruFocus.