7 Stocks Trading With Low P/E Ratios
- By Tiziano Frateschi
Gurus are buying stocks that are trading with low price-earnings (P/E) ratios. Some are greatly undervalued, according to the DCF calculator.
Fibria Celulose SA ADR. (FBR), with a market cap of $4.09 billion, is trading with a P/E ratio of 6.53 and a price-sales (P/S) ratio of 1.21. According to the DCF calculator, the stock has a fair value of $10.82; it is trading at $7.39 with a margin of safety of 32%. The price has dropped by 46% during the last 12 months and is now 50.54% below its 52-week high and 27.63 % above its 52-week low.
The company is a producer of eucalyptus pulp. Its pulp producing facilities include Aracruz, Tr?s Lagoas and Jacare?.
Two hedge funds hold the company. The gurus with the largest holdings are Jim Simons (Trades, Portfolio) with 0.83% of outstanding shares and Steven Cohen (Trades, Portfolio) with 0.38%.
Tech Data Corp. (TECD), with a market cap of $2.84 billion, is trading with a P/E ratio of 13.16 and a P/S ratio of 0.11. According to the DCF calculator, the stock has a fair value of $65.6; it is trading at $80.57 and is overpriced by 23%. The price has risen by 11% during the last 12 months and is now 9.17% below its 52-week high and 38.94% above its 52-week low.
Tech Data Corp is a distributor of information technology (IT) products, logistics management and provides other value-added services.
Two hedge funds holds the company. The gurus with the largest holdings are Donald Smith (Trades, Portfolio) with 0.78% and Jeremy Grantham (Trades, Portfolio) with 0.63%.
SK Telecom Co. Ltd. ADR (SKM), with a market cap of $14.22 billion, is trading with a P/E ratio of 11.06 and a P/S ratio of 0.98. According to the DCF calculator, the stock has a fair value of $21.59; it is trading at $22.35 and is overpriced by 4%. The price has dropped by 12% during the last 12 months and is now 12.49% below its 52-week high and 27.57% above its 52-week low.
SK Telecom provides wireless telecommunications services. The company's business segments are cellular services and fixed-line telecommunication services.
Two hedge funds holds the company. The gurus with the largest holdings are Sarah Ketterer (Trades, Portfolio) with 0.49% of outstanding shares and Jim Simons (Trades, Portfolio) with 0.1%.
Toyota Motor Corp. ADR (TM), with a market cap of $192.02 billion, is trading with a P/E ratio of 8.46 and a P/S ratio of 0.67. According to the DCF calculator, the stock has a fair value of $131.96; it is trading at $115.05 with a margin of safety of 31%. The price has dropped by 6% during the last 12 months and is now 9.61 % below its 52-week high and 17.64% above its 52-week low.
Toyota designs, manufactures and sells sedans, minivans, compact cars, sport-utility vehicles, trucks and related parts and accessories. The company also provides financing, vehicle and equipment leasing, and certain other financial services.
Two hedge funds holds the company. The gurus with the largest holdings are Jim Simons (Trades, Portfolio) with 0.05% of outstanding shares and Donald Smith (Trades, Portfolio) with 0.04%.
RenaissanceRe Holdings Ltd. (RNR), with a market cap of $5.08 billion, is trading with a P/E ratio of 12.41 and a P/S ratio of 3.19. According to the DCF calculator, the stock has a fair value of $106.16; it is trading at about $123.34 and is overpriced by 16%. The price has risen by 13% during the last 12 months and is now 1.02% below its 52-week high and 14.98% above its 52-week low.
RenaissanceRe Holdings offers reinsurance and insurance coverages and related services to its clients. The company's core business is property catastrophe reinsurance.
Two hedge funds holds the company. The gurus with the largest holdings are Jim Simons (Trades, Portfolio) with 0.84% of outstanding shares and Paul Tudor Jones (Trades, Portfolio) with 0.05%.
SunTrust Banks Inc. (STI), with a market cap of $22.49 billion, is trading with a P/E ratio of 12.28 and a P/S ratio of 2.80. According to the DCF calculator, the stock has a fair value of $39.49; it is trading at about $45.36 and is overpriced by 15%. The price has risen by 6% during the last 12 months and is now 2.39% below its 52-week high and 45.99% above its 52-week low.
SunTrust Banks is a bank holding company and a financial holding company with commercial banking organizations whose businesses provide financial services to consumer, business and corporate clients.
Two hedge funds holds the company. The gurus with the largest holdings are HOTCHKIS & WILEY with 0.66% of outstanding shares and Arnold Schneider (Trades, Portfolio) with 0.14%.
First American Financial Corp. (FAF), with a market cap of $4.45 billion, is trading with a P/E ratio of 14.40 and a P/S ratio of 0.85. According to the DCF calculator, the stock has a fair value of $30.18; it is trading at about $40.57 and is overpriced by 34%. The price has risen by 2% during the last 12 months and is now 6.84% below its 52-week high and 27.82% above its 52-week low.
First American Financial is engaged in the business of providing financial services through its title insurance and services segment and its specialty insurance segment.
Two hedge funds holds the company. The gurus with the largest holdings are John Rogers (Trades, Portfolio) with 5.16% of outstanding shares and Ken Fisher (Trades, Portfolio) with 1.37%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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This article first appeared on GuruFocus.
