As of Friday, the GuruFocus All-in-One Screener shows 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 $4.73 billion, Air Lease Corp. (AL, Financial) is trading with a price-earnings ratio of 8.66. According to the DCF calculator, the stock has a fair value of $52.33 while trading at about $42. The price has fallen 4.14% over the last 12 months and is now 9.12% below the 52-week high and 50.59% above the 52-week low.
GuruFocus gives the aircraft leasing company a profitability and growth rating of 6 out of 10. While the return on equity of 11.35% is outperforming the sector, the return on assets of 2.97% is underperforming 64% of companies in the Consulting and Outsourcing industry. Its financial strength is rated 3.3 out of 10. The cash-debt ratio of 0.02 is below the industry median of 0.46.
The company’s largest guru shareholder is Chuck Royce (Trades, Portfolio) with 2.69% of outstanding shares, followed by Ron Baron (Trades, Portfolio) with 1.53% and Jerome Dodson (Trades, Portfolio) with 0.56%.
With a $4.65 billion market cap, L Brands Inc. (LB, Financial) is trading with a price-earnings ratio of 8.18. According to the DCF calculator, the stock has a fair value of $35.07 while trading at $16.70. The share price has declined 37.91% over the last 12 months. It is now trading 55.74% below the 52-week high and 6.32% above the 52-week low.
GuruFocus gives the apparel retailer a profitability and growth rating of 7 out of 10. The return on assets of 6.79% is outperforming 64% of companies in the Retail - Apparel and Specialty industry. Its financial strength is rated 3.5 out of 10. The equity-asset ratio of -0.08 is far below the industry median of 0.45.
PRIMECAP Management (Trades, Portfolio) is the company’s largest guru shareholder with 6.83% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 1.59% and the T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.04%.
With a market cap of $4.60 billion, Radian Group Inc. (RDN) is trading with a price-earnings ratio of 7.98 and a price-book ratio of 1.30. According to the DCF calculator, the stock has a fair value of $30.61 while trading at about $22.70. Shares have climbed 11.41% over the last 12 months and are now trading 7.23% below the 52-week high and 54.59% above the 52-week low.
GuruFocus gives the provider of mortgage insurance a profitability and growth rating of 4 out of 10. The return on equity of 17.69% and return on assets of 9.72% are outperforming 84% of companies in the Insurance - Specialty industry. Its financial strength is rated 4.2 out of 10. The cash-debt ratio of 0.07 is below the industry median of 2.11.
The company’s largest guru shareholder is Steven Cohen (Trades, Portfolio) with 0.88% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.32% and Simons’ firm with 0.29%.
YY Inc. (YY, Financial) has a market cap of $4.64 billion and is trading with a price-earnings ratio of 5.89 and a price-book ratio of 1.02. According to the DCF calculator, the stock has a fair value of $103.59 while trading at $57.4. Shares have declined 19.81% over the last 12 months and are currently trading 70.15% below the 52-week high.
GuruFocus gives the Chinese company, which provides an online live-streaming platform, a profitability and growth rating of 6 out of 10. The return on equity of 19.53% and return on assets of 13.98% are outperforming 70% of companies in the Online Media industry. Its financial strength is rated 7.6 out of 10. The cash-debt ratio of 4.61 is above the industry median of 4.1.
With 0.97% of outstanding shares, Sarah Ketterer (Trades, Portfolio) is the company’s largest guru shareholder, followed by Simons’ firm with 0.81% and Baron with 0.66%.
Qurate Retail Inc. (QRTEB, Financial) has a market cap of $4.63 billion. Its shares are trading with a price-earnings ratio of 9.48 and a price-book ratio of 0.86. According to the DCF calculator, the stock has a fair value of $12.53 while trading at $11.20. Shares have fallen 45.70% over a 12-month period and are currently trading 54.50% below the 52-week high and 9.20% above the 52-week low.
The company has a GuruFocus profitability and growth rating of 7 out of 10. The return on equity of 9.28% and return on assets of 2.91% are underperforming 67% of companies in the Retail - Apparel and Specialty industry. Its financial strength is rated 4.5 out of 10. The cash-debt ratio of 0.07 is below the industry median of 0.53.
Western Alliance Bancorp (WAL, Financial) has a market cap of $4.57 billion. Its shares are trading with a price-earnings ratio of 9.71 and a price-book ratio of 1.62. According to the DCF calculator, the stock has a fair value of $48.48 while trading at $44.11. Shares have declined 22.75% over a 12-month period and are currently trading 26.51% below the 52-week high and 17.95% above the 52-week low.
The bank has a GuruFocus profitability and growth rating of 3 out of 10. The return on equity of 18.14% and return on assets of 2.05% are outperforming 90% of companies in the Banks industry. Its financial strength is rated 3.8 out of 10. The cash-debt ratio of 2.11 is above the industry median of 1.13.
The company’s largest guru shareholder is NWQ Managers (Trades, Portfolio) with 1.55% of outstanding shares, followed by Cohen with 0.12% and Joel Greenblatt (Trades, Portfolio) with 0.01%.
Disclosure: I do not own any stocks mentioned.
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