It is time to take a look at the international 52-week lows to go bargain hunting. There is a page at GuruFocus that is dedicated to finding 52-week lows. The different categories include:
- Stocks at 52-Week Lows
- 52-Week Low Guru Stocks
- 52-Week Low Insider Buys
- 52 Week Low International
- 3-Year Lows
- 5-Year Lows
When I look at the 52-week lows, I also look to the gurus for confirmation since they have more than likely done their homework. A couple of quick tests that I use to determine if I would like to investigate the stock further for investment is to check it against the valuation box at the top of the stock’s summary page and to check its fair value based on the DCF Calculator found on the stock’s page. Here are five international stocks that are trading near their 52-week lows and widely held by the investing gurus:
Vodafone Group Plc (VOD) closed at $32.51 on 10/3/2014, near its 52-week low of $31.87. The stock is down 21.9 percent from its 52-week high of $42.14 on 2/24/2014. Vodafone is headquartered in Newbury, United Kingdom. It operates as a telecommunications company worldwide offing voice, messaging, data, and fixed broadband services. The low trailing P/E 0.90 includes earnings from the stake in Verizon Wireless that was sold to Verizon in February. Analysts estimate that full year EPS for 2015 will be $1.13 and $1.18 for 2016. The P/E based on FY2015 EPS is 29.12, and earnings growth is only expected to be 4.4 percent over the following year. The stock is overvalued according to its high forward P/E and low estimated growth rate. The stock is held by 24 gurus we follow with John Paulson of Paulson & Co. holding the largest position of 26.7 million shares, representing 1.01 percent of the shares outstanding.
Market Cap: 87.28 billion, P/E: 0.90
Business Predictability: 1/5, Financial Strength: 6/10, Profitability & Growth: 5/10
Diageo Plc (DEO) closed at $112.26 on 10/3/2014, near its 52-week low of $111.44. The stock is down 15.08 percent for its 52-week high of $133.00 on 1/22/2014. Diageo is headquartered in London, United Kingdom. It manufactures and distributes premium drinks. Its core brands include Johnnie Walker, Crown Royal, Buchanans, J&B, Baileys, Smirnoff, Captain Morgan, Guinness, Shui Jing Fang, and Yeni Raki. The stock could have another 10 percent left to go on the downside. Of the valuation measurements, median price-to-sales (P/S) is the closest to its current price. The 10-year median P/S ratio is 3.63 compared to its current ratio of 4.30. The stock would be trading at $100.99 if trading at its 10-year median P/S ratio, making it overvalued. The stock is held by 16 gurus we follow with James Barrow of Barrow, Hanley, Mewhinney & Strauss holding the largest position of 6.51 million shares representing 1.04 percent of the shares outstanding.
Market Cap: 71.32 billion, P/E: 19.50
Business Predictability: 3.5/5, Financial Strength: 7/10, Profitability & Growth: 7/10
SAP SE (SAP) closed at $71.08 on 10/3/2014, near its 52-week low of $70.20. The stock is down 18.66 percent from its high of $87.42 on 12/31/2013. SAP is headquartered in Walldorf, Germany. It provides enterprise application software and software-related services worldwide. The stock is undervalued in relation to its 10-year median P/S ratio of 4.14. It is currently at 3.90, and the stock would be trading at $80.32 if priced at its 10-year median P/S ratio. The stock is held by 14 gurus we follow with Ken Fisher of Fisher Asset Management holding the largest position of 6.01 million shares, representing 0.5 percent of the shares outstanding.
Market Cap: 84.93 billion, P/E: 21.00
Business Predictability: 5/5, Financial Strength: 9/10, Profitability & Growth: 9/10
Rio Tinto Plc (RIO) closed at $47.17 on 10/3/2014, near its 52-week low of $46.83. The stock is down 20.52 percent from its 52-week high of $60.61 on 2/21/2014. Rio Tinto is headquartered in London, United Kingdom. It is engaged in mining and processing a wide variety of mineral resources worldwide. The stock has rallied more than 9 percent on the news that Glencore (LSE:GLEN) is reportedly preparing a merger with the company. There is likely some more upside with the stock trading at a 23.6 percent discount to its 10-year median P/S ratio of 2.47. Its current ratio is 1.89, and the stock would be priced at $67.91 if trading at its 10-year median P/S ratio, making it undervalued. The stock is held by nine gurus we follow with Richard Snow of Snow Capital Management holding the largest position of 1.60 million shares, representing 0.11 percent of the shares outstanding.
Market Cap: 88.73 billion, P/E: 24.60
Business Predictability: 1/5, Financial Strength: 7/10, Profitability & Growth: 8/10
Telefonica SA (TEF) closed at $14.99 on 10/3/2014, near its 52-week low of $14.86. The stock is down 16.18 percent from its 52-week high of $18.05 on 10/21/2013. Telefonica is headquartered in Madrid, Spain. It provides fixed and mobile communication services primarily in Europe and Latin America. The stock is fairly valued according to its Projected Free Cash Flow value of $14.95 and will likely have limited downside from here. It is also yielding a high 7.27 percent dividend that is safe due its sustainable payout ratio of 47 percent. The stock is held by eight gurus we follow with Brian Rogers of the T Row Price Equity Income Fund holding the largest position of 5.83 million shares, representing 0.13 percent of the shares outstanding.
Market Cap: 68.86 billion, P/E: 12.40
Business Predictability: 1/5, Financial Strength: 6/10, Profitability & Growth: 7/10
Try the 52-week low feature to see if you can find any other opportunities. The feature is also available for stocks trading in Canada, UK/Ireland, Europe, Asia, and Oceania. The All-In-One Screener can also be used in combination with low price screens.
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