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6 Guru Stocks With a Low Price-Sales Ratio

According to the GuruFocus All-In-One Screener, a Premium feature, the following companies are trading with low price-sales ratios as of Dec. 29, 2019.

Raytheon

Raytheon Co. (RTN) was trading around $221.00 per share with a price-sales ratio of 2.17 and a price-earnings ratio of 18.89.


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The company, which operates in the aerospace and defense industry, has a market cap of $61.55 billion. The stock has risen at an annualized rate of 16.77% over the past decade.

The DCF calculator gives the company a fair value of $149.71, suggesting it is overpriced by 47%, while the Peter Lynch value gives the stock a fair price of $163.05.

The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.95% of outstanding shares, followed by Steven Cohen (Trades, Portfolio)'s Point72 Asset Management with 0.20%, Andreas Halvorsen (Trades, Portfolio)'s Viking Global Investors with 0.11% and Barrow, Hanley, Mewhinney & Strauss with 0.09%.

Micron Technology

As of Dec. 29, Micron Technology Inc. (MU) was trading around $54.00 per share with a price-sales ratio of 2.96 and a price-earnings ratio of 17.89.

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The company, which operates in the semiconductors industry, has a market cap of $61.21 billion. The stock price has risen at an annualized rate of 18.42% over the last 10 years.

The DCF calculator gives the stock a fair value of $32.96, suggesting it is overpriced by 67.20%. The Peter Lynch fair value gives the stock a fair price of $44.20.

With 5.11% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 1.13%, Parnassus Endeavor Fund (Trades, Portfolio) with 0.58% and David Tepper (Trades, Portfolio)'s Appaloosa with 0.54%.

Colgate-Palmolive

Colgate-Palmolive Co. (CL) was trading around $69.00 as of Dec. 29, with a price-sales ratio of 3.82 and a price-earnings ratio of 25.4.

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The company, which manufactures shampoos, shower gels and deodorants, has a market cap of $58.78 billion. The stock has risen at an annualized rate of 7.12% over the past decade.

The DCF calculator gives the company a fair value of $28.89, suggesting it is overpriced with a 138% margin of safety. The Peter Lynch earnings line gives the stock a fair price of $40.50.

The company's largest guru shareholder is First Eagle Investment (Trades, Portfolio) with 1.48% of outstanding shares, followed by Simons' firm with 0.53%, Yacktman Asset Management (Trades, Portfolio) with 0.15%, Yacktman Fund (Trades, Portfolio) with 0.13% and Pioneer Investments (Trades, Portfolio) with 0.13%.

Illinois Tool Works

Illinois Tool Works Inc. (ITW) was trading around $181.28 with a price-sales ratio of 4.18 and a price-earnings ratio of 23.88.

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The company has a market cap of $58.26 billion. The price of the stock has risen at an annualized rate of 15.53% over the last 10 years.

The DCF calculator gives the company a fair value of $113.42, suggesting it is overpriced by 59%. The Peter Lynch fair value gives the stock a fair price of $111.75.

With 0.22% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Tom Gayner (Trades, Portfolio)'s Markel Corp with 0.09% and John Rogers (Trades, Portfolio) with 0.08%

Brookfield Asset Management

Brookfield Asset Management Inc. (BAM) was trading around $58.00 as of Dec. 29, with a price-sales ratio of 0.84 and a price-earnings ratio of 15.26.

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The company, which operates in the asset management industry, has a market cap of $58.05 billion. The stock price has risen at an annualized rate of 16.17% over the past decade.

The DCF calculator gives the company a fair value of $80.24, suggesting it is undervalued with a 28% of margin of safety, while the Peter Lynch fair value gives the stock a fair price of $55.80.

The company's largest guru shareholder is Gayner with 0.67% of outstanding shares, followed by Chuck Akre (Trades, Portfolio) with 0.62%, Third Avenue Management (Trades, Portfolio) with 0.18% and Ron Baron (Trades, Portfolio) with 0.14%.

CSX

CSX Corp. (CSX) was trading around $72.85 as of Dec. 29, with a price-sales ratio of 4.83 and a price-earnings ratio of 17.39.

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The U.S. railroad company has a market cap of $56.67 billion. The stock price has risen at an annualized rate of 16.8% over the last 10 years.

The DCF calculator gives the company a fair value of $80.27, suggesting it is undervalued with a 9.22% of margin of safety. The Peter Lynch fair value gives the stock a fair price of $62.85.

With 0.53% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons' firm with 0.34%, Pioneer Investments (Trades, Portfolio) with 0.14%, PRIMECAP Management (Trades, Portfolio) with 0.09%, Joel Greenblatt (Trades, Portfolio)'s Gotham Asset Management with 0.07% and Cohen's Point72 Asset Management with 0.06%

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.