Tag: F

10 Low PE Stocks with the Biggest Estimated Earnings Growth Over the Next 5 Years

by Fred Fuld III

Many investors, along with money managers, and hedge funds, take into consideration many factors when looking for stocks to invest in over the long term.

These can include such things as the trailing and future price to earnings ratio, the price to earnings brother ratio, and even if the stock pays a dividend.

One feature that some investors like to see is a strong estimated earnings per share growth rate over the next five years.

The following is a list of stocks that have all of those characteristics and even more.Here is what the stocks have in common:

  • Market cap of over $10 billion
  • Trailing P/E ratio less than 15
  •  Forward P/E ratio less than 15
  • PEG ratio less than 1
  • Earnings per share growth over the next 5 years over 25%
  • Pay a dividend
  • US based companies

Here is the list of all the companies that meet the above requirements:

Company Symbol Market Cap P/E
Ally Financial Inc. ALLY 10.81B 4.16
Ameriprise Financial, Inc. AMP 25.64B 8.97
APA Corporation APA 10.69B 4.56
Discover Financial Svcs DFS 26.57B 5.76
Ford Motor Company F 43.71B 3.89
LKQ Corporation LKQ 14.02B 13.44
Nucor Corporation NUE 27.85B 3.78
Ovintiv Inc. OVV 10.19B 12.22
Steel Dynamics, Inc. STLD 12.14B 3.32
Synchrony Financial SYF 13.84B 3.87
Westlake Corporation WLK 12.11B 4.87

Ten stocks were promised, but an additional one is included.

Disclosure: Author owns Ford (F).

Rivian Automotive has no income, no sales, but a Market Cap of $130 Billion

by Fred Fuld III

Rivian Automotive (RIVN) just went public a week ago, and since then, the stock has been up every day until today. As I write this, the market cap for the company is $130 billion. That’s “billion” with a B.

This California based company was founded in 2009 and is in the business of developing electric vehicles.

For the trailing twelve months, net income has been a negative $1,635,000,000.

Revenues for the company have been zero.

Yesterday, the market cap for the company was $151.9 Billion.

That market cap is larger than all of the following automobile manufacturers:

  • Ford (F)
  • General Motors (GM)
  • Honda Motor (HMC)
  • Nissan Motor (NSANY)
  • Daimler (DDAIF)
  • BMW Bayerische Motoren Werke (BMWYY)
  • Volkswagen (VWAGY)
  • Porsche Automobil (POAHY)

I wonder if Ford stopped making cars if it would increase the market cap of the company.

Disclosure: Author owns F and DDAIF. Author has a vertical call position on RIVN.

Top Dividend Stocks Under $10 per Share

by Fred Fuld III

The advantage of owning dividend stocks is that your invested capital is being returned while you are waiting for the share price to appreciate. Dividends also can add some stability to the stock price.

Even though it really doesn’t make any difference what the price of s stock is, owning a low priced stock gives investors a psychological benefit. (“A $5 stock only has to go up by $1 and I’ve made 20%.”) Plus, lower priced stocks are accessible to more investors. After all, how many investors can afford 100 shares of Amazon?

What happens if you add the two together, a low price and dividends? There are actually around 360 stocks that fit those categories, assuming yields of at least 2%. However, if you narrow it down to the stocks with the top fundamentals, there are actually eight stocks that fit into that category.

The fundamentals that are considered include:

  • P/E ratio below 15
  • Forward P/E below 15
  • Price to Earnings Growth Ratio of less than one
  • Price Sales Ratio less than one
  • Yield over 2%

For example, the office supplies company, ACCO Brands (ACCO), sells for less than $9 per share, and trades at 7.5 times trailing earnings and 6.4 times forward earnings. It sports a favorable  0.75 price to earnings growth ratio and an excellent 0.44 price/sales ratio. The latest quarterly earnings growth was 21.2% year-over-year. The yield is 2.87% and dividends are paid quarterly.

Another example is the chemical company, Valhi (VHI), based in Dallas, Texas, which yields 3.43% and trades for less than $3 per share. The stock has an extremely low P/E ratio of 2.3, and Forward P/E of 2.8.

The following is a list of the various stocks that match the previously described fundamentals.

Company Symbol Market Cap P/E Price
ACCO Brands Corporation ACCO 866.73M 7.52 8.35
BGC Partners, Inc. BGCP 2.82B 9.46 6.11
Ford Motor Company F 35.07B 6.08 8.82
Manning & Napier, Inc. MN 33.90M 1.77 2.26
Comp. Siderurgica Nacional SID 3.34B 3.65 2.64
Telefonica, S.A. TEF 44.18B 11.83 8.79
Unique Fabricating, Inc. UFAB 52.72M 10.15 5.52
Valhi, Inc. VHI 794.11M 2.3 2.33

Please note that many of these stocks have very low market caps and should be considered very speculative.

Disclosure: Author owns Ford.

Top High Yield Stocks

by Fred Fuld III

If you are looking for income investments with growth potential, there is no better choice than stocks that pay a high dividend. However, you want to make sure that the stocks have good fundamentals.

Here are a few stocks yielding over 6%, with price to earnings ratios of less than 15, forward P/Es less than 15, a price to earnings growth ratio of less than one, and a price to sales ratio of less than one.

Ford Motor Company (F), the one of only two car companies that have never gone bankrupt (Tesla (TSLA) is the other one), trades at 6.3 times trailing earnings and 6.8 times forward earning. The stock has a dividend yield of 6.3%

Tupperware Brands (TUP), the kitchen products, storage, and beauty products company, trades at a forward P/E of 8.2% and pays a very generous yield of 7%.

Unique Fabricating (UFAB) is in the automotive parts manufacturing business. The forward P/E is 7.6% and the yield on the stock is a magnanimous 7.4%.

Hopefully, one of these stocks can boost your portfolio income.

 

Disclosure: Author didn’t own any of the above at the time the article was written.

Top Stocks Under $10 per Share

by Fred Fuld III

If you are looking for a top stock from a value standpoint, what fundamentals would you look for? The following are the most common fundies that many value investors look for.

  • P/E [price earnings ratio] under 15
  • Forward P/E under 15
  • PEG [price to earnings growth] less than 1
  • P/S [price sales ratio] less than 1
  • Pays a dividend

Here are the stocks with the above criteria that sell for less than $10 per share:

ACCO Brands (ACCO)

Chico’s (CHS)

Ford (F)

Ferroglobe (GSM)

Manning & Napier (MN)

Unique Fabricating (UFAB)