Value investors are always looking for stocks at low prices. Searching for stocks trading near their 52-week lows is one way to do so. Stocks in general trade in wide ranges throughout the year, even if the business has not drastically changed. If you are going to buy good business, why not buy them near the bottom of the price range? To search for these stocks, I used the GuruFocus All-In-One Screener to find stocks that are trading within 5 percent of their 52-week lows and held by the investing gurus. From there, I sorted the list to find the stocks that are held by the most gurus we follow. These expert value investors have done their homework and believe that these stocks will provide gains in the future. Here are the six most widely held stocks trading near their 52-week lows:
General Motors Co (GM) closed at $32.18 on 10/8/2014, near its 52-week low of $30.79. The stock is down 25.32 percent from its 52-week high of $41.85 on 12/26/2013. GM designs, builds and sells cars, trucks and automobile parts worldwide. It also provides automotive financing services through GM Financial. With the recall problems and lawsuits the company has been facing, EPS has dropped 63.9 percent over the past 12 months. Most analysts believe that these are temporary issues, and the company will bounce back with an EPS of $4.47 for 2015. With the estimates, GM’s forward P/E ratio is just 6.93, making it a bargain. According to Benjamin Graham, a company with no growth should be trading at a P/E ratio of 8.5. Therefore, if GM even experiences no growth after 2015, it is still undervalued by 18.5 percent. The stock is held by 31 gurus we follow with Warren Buffett of Berkshire Hathaway (BRK.A) holding the largest position of 33 million shares, representing 2.06 percent of the shares outstanding.
Market Cap: 51.01 Billion, P/E: 17.04
Business Predictability: Not Rated, Financial Strength: 8/10, Profitability & Growth: 3/10
BP Plc (BP) closed at $43.15 on 10/8/2014, near its 52-week low of $41.30. The stock is down 19.32 percent from its 52-week high of $53.48 on 7/2/2014. BP is one of the world’s largest oil and gas companies. It provides fuel for transportation, energy for heat and light, lubricants for engines, and petrochemical products worldwide. BP is undervalued on a number of metrics. Using the conservative Graham Number factoring earnings and book value with growth, the stock is valued at $49.28, 17 percent higher than its current price. The stock is held by 24 gurus with James Barrow of Barrow, Hanley, Mewhinney & Strauss holding the largest position of 28.8 million shares, representing 0.94 percent of the shares outstanding.
Market Cap: 133.96 Billion, P/E: 13.08
Business Predictability: 1/5, Financial Strength: 7/10, Profitability & Growth: 7/10
CBS Corp (CBS) closed at $52.59 on 10/8/2014, near its 52-week low of $50.52. The stock is down 24.14 percent from its 52-week high of $68.10 on 3/11/2014. CBS is a mass media company with operations in the following segments: Entertainment, Cable Networks, Publishing, Local Broadcasting, and Outdoor Americas. Investing guru Mario Gabelli believes that an announced $3 billion share buyback and expected split-off and REIT conversion of CBS Outdoor could act as a catalyst for the stock. Currently, the stock is overvalued in relation to its Peter Lynch Earnings Line value of $45.30. The stock is held by 23 gurus we follow with Chris Shumway of Shumway Capital Partners holding the largest position of 9.53 million shares, representing 1.68 percent of the shares outstanding.
Market Cap: 27.44 Billion, P/E: 16.50
Business Predictability: 1/5, Financial Strength: 7/10, Profitability & Growth: 8/10
Vodafone Group Plc (VOD) closed at $33.26 on 10/8/2014, near its 52-week low of $31.87. The stock is down 21.07 percent from its 52-week high of $42.14 on 2/24/2014. Vodafone operates as a worldwide telecommunications company providing a large variety of products and 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 FY 2015 EPS is 27.81, 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 22 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: 84.7 Billion, P/E: 0.90
Business Predictability: 1/5, Financial Strength: 6/10, Profitability & Growth: 5/10
United Technologies Corp (UTX) closed at $102.63, near its 52-week low of $100.69. The company provides high technology products and services to the building systems and aerospace industries worldwide. The stock is down 14.94 percent from its 52-week high of $120.66 on 4/22/2014. It is overvalued in relation to its Peter Lynch Earnings Line value of $94.30. The stock is held by 22 gurus we follow with Ken Fisher of Fisher Asset Management holding the largest position of 8.28 million shares, representing 0.9 percent of the shares outstanding.
Market Cap: 93.12 Billion, P/E: 15.90
Business Predictability: 2.5/5, Financial Strength: 7/10, Profitability & Growth: 7/10
McDonald’s Corp (MCD) closed at $93.83 on 10/8/2014, near its 52-week low of $90.53. The stock is down 9.76 percent from its 52-week high of $103.78 on 5/14/2014. McDonald’s restaurants serve a broad menu at various price points in more than 100 countries around the world. All restaurants are operated either by the company or by franchisees. McDonald’s is half as volatile as the rest of the stocks listed with a beta of just 0.59. The CAPM model indicates that stocks with a low beta are valued at a premium in today’s low interest rate environment. Using CAPM to determine a discount rate of 7.34 percent and using its five-year annual growth rate of 7.9 percent, the GuruFocus DCF Calculator gives McDonald’s a fair value of $106.07, making it undervalued by 12.4 percent. The stock is held by 22 gurus we follow with Bill Gates of Bill & Melinda Gates Foundation Trust holding the largest position of 10.9 million shares, representing 1.1 percent of the shares outstanding.
Market Cap: 92.01 Billion, P/E: 16.80
Business Predictability: 4.5/5, Financial Strength: 8/10, Profitability & Growth: 8/10
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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