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6 Guru Stocks With Low Price-Earnings Ratios

GuruFocus.com
·6 mins read

As of Monday, the GuruFocus All-in-One Screener, a Premium feature, found that the following stocks have low price-earnings ratios and have been bought by gurus. While some of them are great value investments, others may need to be checked again, according to the discounted cash flow calculator.

Spirit Airlines


With a market cap of $2.90 billion, Spirit Airlines Inc. (NYSE:SAVE) has a price-earnings ratio of 8.41. According to the DCF calculator, the stock has a fair value of $68.92 while trading at $42. The stock has tumbled 30.57% over the last 12 months and is now 34.47% below the 52-week high and 28.72% above the 52-week low.

The airline operator has a GuruFocus profitability rating of 8 out of 10. The return on equity of 17.27% and return on assets of 5.84% are outperforming 74% of companies in the transportation industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.33 is above the industry median of 0.27.

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The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 0.90% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.64% and Robert Olstein (Trades, Portfolio) with 0.26%.

LiveRamp Holdings

With a $2.80 billion market cap, LiveRamp Holdings Inc. (NYSE:RAMP) is trading with a price-earnings ratio of 3.42. The share price has fallen 5.56% over the past 12 months and is now 34.49% below the 52-week high and 11.05% above the 52-week low.

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GuruFocus gave the technology and services company a profitability rating of 5 out of 10. The return on equity of 78.57% and return on assets of 62.82% are outperforming 98% of companies in the software industry. Its financial strength is rated 9 out of 10. The cash-debt ratio of 92.08 is far above the industry median of 2.19.

Ron Baron (Trades, Portfolio) is the company's largest guru shareholder with 1.88% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.27%.

Triton International

With a market cap of $2.78 billion, Triton International Ltd. (NYSE:TRTN) is trading with a price-earnings ratio of 8.67 and a price-book ratio of 1.31. According to the DCF calculator, the stock has a fair value of $46.34 while trading at about $37.55. Shares have risen 8.10% over the last 12 months and are now trading 5.78% below the 52-week high and 30.34% above the 52-week low.

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The intermodal container leasing company's return on equity of 14.59% and return on assets of 3.35% are outperforming 51% of companies in the business services industry. The cash-debt ratio of 0.01 is below the industry median of 0.69.

The company's largest guru shareholder is Simons' firm with 0.53% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.19% and Pioneer Investments (Trades, Portfolio) with 0.01%.

PennyMac Financial Services

PennyMac Financial Services Inc. (NYSE:PFSI) has a market cap of $2.68 billion and is trading with a price-earnings ratio of 9.26 and a price-book ratio of 1.41. According to the DCF calculator, the stock has a fair value of $38.95 while trading at about $34. Shares have climbed 65.26% over the last 12 months.

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GuruFocus gave the financial services company a profitability rating of 9 out of 10. The return on equity of 18.39% and return on assets of 3.49% are outperforming 91% of companies in the banks industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.15 is below the industry median of 1.17.

With 0.74% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by Jeremy Grantham (Trades, Portfolio) with 0.72%.

PolyOne

PolyOne Corp. (NYSE:POL) has a market cap of $2.57 billion. Its shares are trading with a price-earnings ratio of 4.41 and a price-book ratio of 2.45. According to the DCF calculator, the stock has a fair value of $17.14 while trading at $33.74. Shares have risen 6.51% over a 12-month period and are currently trading 7.98% below the 52-week high and 40.38% above the 52-week low.

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The company, which provides a variety of chemicals, plastics and chemical-based products, has a GuruFocus profitability rating of 7 out of 10. The return on equity of 88.59% and return on assets of 19.85% are outperforming 55% of companies in the chemicals industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.67 is above the industry median of 0.61.

The company's largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 1.84% of outstanding shares, followed by Grantham with 0.15%, Joel Greenblatt (Trades, Portfolio) with 0.13%, Hotchkis & Wiley with 0.12% and Paul Tudor Jones (Trades, Portfolio) with 0.07%.

Commercial Metals

Commercial Metals Co. (NYSE:CMC) has a market cap of $2.55 billion. Its shares are trading with a price-earnings ratio of 9.34 and a price-book ratio of 1.46. According to the DCF calculator, the stock has a fair value of $23.54 while trading at $20.4. Shares have risen 22.78% over a 12-month period and are currently trading 10.61% below the 52-week high and 62.01% above the 52-week low.

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The company, which operates steel fabrication plants and metal recycling facilities, has a GuruFocus profitability rating of 6 out of 10. The return on equity of 16.61% and return on assets of 6.97% are outperforming 81% of companies in the steel industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.19 is below the industry median of 0.26.

The company's largest guru shareholder is Richard Snow (Trades, Portfolio) with 2.05% of outstanding shares, followed by Royce with 0.46% and Louis Moore Bacon (Trades, Portfolio) with 0.26%.

Disclosure: I do not own any stocks mentioned.

Read more here:

  • 6 Underperforming Stocks With a High Dividend Yield

  • Insiders Roundup: Texas Instruments, Homolody Medicines

  • 6 Stocks Killing Gurus' Returns



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This article first appeared on GuruFocus.