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6 Low Price-Earnings Stocks

- By Tiziano Frateschi

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.

With a market cap of $ 728.29 million, Rite Aid Corp. (RAD) is trading with a price-earnings ratio of 0.39 and a price-book ratio of 0.49. The share price has fallen 55% over the last 12 months and is trading 68.19% below its 52-week high and 12.4% above its 52-week low.


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GuruFocus gives the drugstore chain a profitability and growth rating of 3 out of 10. While the return on equity of 43.22% is outperforming the sector, the return on assets of 6.88% is underperforming 73% of companies in the Global Pharmaceutical Retailers industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.12 is below the industry median of 0.55.

The company's largest guru shareholder is Mario Gabelli (Trades, Portfolio) with 0.15% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.02%.

With a $93 million market cap, Strata Skin Sciences Inc. (SSKN) is trading with a price-earnings ratio of 1.04 and a price-book ratio of 2.69. According to the DCF calculator, the stock has a fair value of $82.27 while trading at $3. The share price has climbed 150% over the last 12 months. It is trading 22.68% below its 52-week high and 175.23% above its 52-week low.

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GuruFocus gives the medical technology company a profitability and growth rating of 6 out of 10. The return on equity of 16.91% and return on assets of -13.49% are underperforming 92% of companies in the Global Medical Instruments and Supplies industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 2.16 is above the industry median of 1.74.

Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder with 2.90% of outstanding shares.

With a market cap of $54.04 million, Forward Pharma A/S (FWP) is trading with a price-earnings ratio of 1.05 and a price-book ratio of 0.65. According to the DCF calculator, the stock has a fair value of $12.2 while trading at $1.2. The share price fell 57% over the last 12 months and is trading 73.03% below its 52-week high and 69.01% above its 52-week low.

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GuruFocus rated the biopharmaceutical company's profitability and growth 7 out of 10. The return on equity of -6.54% and return on assets of -5.37% are outperforming 100% of companies in the Global Biotechnology industry. Its financial strength is rated 8 out of 10 with no debt.

The company's largest guru shareholder is Simons' firm with 0.06% of outstanding shares.

SIGA Technologies Inc. (SIGA) has a market cap of $466.22 million. It is trading with a price-earnings ratio of 1.13 and a price-book ratio of 4.50. According to the DCF calculator, the stock has a fair value of $54.69 while trading at $5.76. The share price has fallen 4% over the last 12 months and is trading 32% below its 52-week high and 23.08% above its 52-week low.

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GuruFocus gives the commercial-stage pharmaceutical company a profitability and growth rating of 6 out of 10. The return on assets of 279.97% is outperforming 57% of companies in the Global Biotechnology industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 1.33 is below the industry median of 64.02.

With 0.02% of outstanding shares, Greenblatt is the company's largest guru shareholder.

Montage Resources Corp. (MR) has a market cap of $567.68 million. The stock is trading with a price-earnings ratio of 1.14 and a price-book ratio of 0.47. According to the DCF calculator, the stock has a fair value of $150.89 while trading at $16.13. The share price has fallen 17% over a 12-month period and is currently 45.14% below its 52-week high and 45.32% above its 52-week low.

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The company, which explores oil and natural gas properties, has a GuruFocus profitability and growth rating of 6 out of 10. The return on equity of 2.93% and return on assets of 1.37% are outperforming 60% of companies in the Global Oil and Gas E&P industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.01 is below the industry median of 0.51.

The company's largest guru shareholder is Richard Snow (Trades, Portfolio) with 0.12% of outstanding shares, followed by Simons' firm with 0.07%.

Kingold Jewelry Inc. (KGJI) has a market cap of $56.65 million; the stock is trading with a price-earnings ratio of 1.15 and a price-book ratio of 0.16. According to the DCF calculator, the stock has a fair value of $8.03 while trading at about 86 cents. The share price fell 33% over the last 12 months and is trading 40.90% below its 52-week high and 18.19% above its 52-week low.

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GuruFocus gives the manufacturer of 24-karat gold jewelry a profitability and growth rating of 8 out of 10. While the return on equity of 13.27% is outperforming the sector, the return on assets of 1.82% is underperforming 57% of companies in the Global Luxury Goods industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.45 is below the industry median of 0.99.

Disclosure: I do not own any stocks mentioned.

Read more here:

  • 6 Undervalued Stocks Growing Book Value
  • 5 Energy Stocks in Gurus' Portfolios
  • 6 Cheap Stocks With Positive Earnings Growth Estimates


This article first appeared on GuruFocus.