6 Large-Cap Stocks With Low Price-Sales Ratios
- By Tiziano Frateschi
According to the GuruFocus All-in-One Screener, the following companies with market caps over $5 billion look cheap since they are trading with low price-sales ratios.
Shares of Acco Brands Corp. (ACCO) are trading around $8.8 with a price-sales ratio of 0.50 and a price-earnings ratio of 8.91. The company, which manufactures office and school supplies as well as calendar products, has a market cap of $920 million. The stock has risen at an annualized rate of 22.8% over the last 10 years.
- Warning! GuruFocus has detected 2 Warning Sign with ACCO. Click here to check it out.
- List of 52-Week Lows
- List of 3-Year Lows
- List of 5-Year Lows
The discounted cash flow calculator gives the stock a fair value of $10.81, suggesting it is undervalued with a 17% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $20.10.
Hotchkis & Wiley is the company's largest guru shareholder with 0.27% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.22% and Barrow, Hanley, Mewhinney & Strauss with 0.20%.
Class A shares of Accenture PLC (ACN) are trading around $164 with a price-sales ratio of 2.55. The consulting, technology and outsourcing services company has a market cap of $105 billion. The stock has risen at an annualized rate of 19.71% over the past decade.
The DCF calculator gives the stock a fair value of $99.85, suggesting it is overpriced by 65%. The Peter Lynch earnings line gives the stock a fair value of $95.10.
The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.64% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.30%, Simons' firm with 0.13% and the MS Global Franchise Fund (Trades, Portfolio) with 0.06%.
Acme United Corp. (ACU) is trading around $17.11 with a price-sales ratio of 0.45 and a price-earnings ratio of 13.36. The company, which supplies cutting, measuring and safety products, has a market cap of $57.65 million. The stock has risen at an annualized rate of 11.93% over the last 10 years.
The DCF calculator gives the stock a fair value of $13.7, suggesting it is overpriced by 25%. The Peter Lynch earnings line gives the stock a fair value of $13.80.
With 4.02% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by Chuck Royce (Trades, Portfolio) with 3.82%.
Bank Bradesco SA (BBD) is trading around $11.65 with a price-sales ratio of 2.96 and a price-earnings ratio of 16.67. The Brazilian bank has a market cap of $73.4 billion. The stock has risen at an annualized rate of 12.89% over the past decade.
The DCF calculator gives the company a fair value of $8.46, suggesting it is overpriced by 38%. The Peter Lynch earnings line gives the stock a fair value of $11.05.
The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.52% of outstanding shares, followed by Ken Heebner (Trades, Portfolio) with 0.21% and Pioneer Investments with 0.03%.
Shares of BB&T Corp. (BBT) are trading around $50 with a price-sales ratio of 3.38 and price-earnings ratio of 12.73. The bank holding company has a market cap of $38.04 billion. The stock has risen at an annualized rate of 12.50% over the last 10 years.
The DCF calculator gives the company a fair value of $51.01, suggesting it is undervalued with a 2% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $55.65.
The company's largest guru shareholder is Dodge & Cox with 2.25% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 2.18% and Pioneer Investments with 0.14%.
Caterpillar Inc. (CAT) is trading around $133 with a price-sales ratio of 1.71 and a price-earnings ratio of 12.99. The company, which manufactures specialized heavy construction and mining equipment, has a market cap of $76.65 billion. The stock has risen at an annualized rate of 19.26% over the past decade.
The DCF calculator gives the company a fair value of $109.69, suggesting it is overpriced by 21%. The Peter Lynch earnings line gives the stock a fair value of $93.45.
With 1.96% of outstanding shares, Bill Gates (Trades, Portfolio) is the company's largest guru shareholder, followed by PRIMECAP Management (Trades, Portfolio) with 1.63% and Spiros Segalas (Trades, Portfolio) with 0.22%.
Disclosure: I do not own any stocks mentioned.
Read more here:
- 6 Undervalued Stocks With Positive Earnings Growth Estimates
- 6 High-Yielding Stocks
- 6 Stocks Beating the Market
This article first appeared on GuruFocus.
- Warning! GuruFocus has detected 2 Warning Sign with ACCO. Click here to check it out.
- List of 52-Week Lows
- List of 3-Year Lows
- List of 5-Year Lows