11/24/2012

Cheapest Large Cap Stock List | 13 Hot Growth Picks

Cheapest large capitalized stocks with highest earnings per share growth; originally published at “long-term-investments.blogspot.com. A cheap stock is the basis for every future returns. Beside cheap fundamentals and pricing ratios of a company, the expected growth is an additional important item for investors. After the ongoing turbulences due to the euro debt crises and the fiscal cliff in America, there should be some bargains in relation to growth right now.

I made a screen of America’s cheapest large capitalized stocks with highest expected growth for the upcoming fiscal year. Stocks from the sheet have a market capitalization of more than USD 10 billion and earnings per share are expected to grow for at least 15 percent. Despite the strong growth, they still have a P/E ratio of less than 15 and a P/S and P/B ratio of less than two. Fourteen companies fulfilled the mentioned criteria of which thirteen companies have a buy or better recommendation. Eleven of the results pay dividends.

The highest yielding stock is now China Petroleum & Chemical. The company yields at 4.39 percent but long-term earnings are expected to fall by around one percent for the next five years. The best picks by mid-term growth are Mitsui and Honda.


Here are my favorite picks:
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Ericsson (NASDAQ:ERIC) has a market capitalization of $29.78 billion. The company employs 109,214 people, generates revenue of $34.307 billion and has a net income of $1.900 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.608 billion. The EBITDA margin is 13.43 percent (the operating margin is 7.89 percent and the net profit margin 5.54 percent).

Financial Analysis: The total debt represents 11.07 percent of the company’s assets and the total debt in relation to the equity amounts to 21.68 percent. Due to the financial situation, a return on equity of 8.46 percent was realized. Twelve trailing months earnings per share reached a value of $0.62. Last fiscal year, the company paid $0.38 in the form of dividends to shareholders. The earnings per share are expected to grow by 29.41 for the next year and 9.62 percent for the upcoming five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.42, the P/S ratio is 0.87 and the P/B ratio is finally 1.38. The dividend yield amounts to 3.85 percent and the beta ratio has a value of 1.02.


”Long-Term
Long-Term Stock History Chart Of Ericsson (Click to enlarge)
”Long-Term
Long-Term Dividends History of Ericsson (ERIC) (Click to enlarge)
”Long-Term
Long-Term Dividend Yield History of Ericsson (NASDAQ: ERIC) (Click to enlarge)

Bunge Limited (NYSE:BG) has a market capitalization of $10.68 billion. The company employs 35,000 people, generates revenue of $58.743 billion and has a net income of $896 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.685 billion. The EBITDA margin is 2.87 percent (the operating margin is 1.60 percent and the net profit margin 1.53 percent).

Financial Analysis: The total debt represents 17.53 percent of the company’s assets and the total debt in relation to the equity amounts to 34.86 percent. Due to the financial situation, a return on equity of 8.05 percent was realized. Twelve trailing months earnings per share reached a value of $5.87. Last fiscal year, the company paid $0.98 in the form of dividends to shareholders. The earnings per share are expected to grow by 21.22 for the next year and 10.0 percent for the upcoming five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.45, the P/S ratio is 0.18 and the P/B ratio is finally 0.97. The dividend yield amounts to 1.48 percent and the beta ratio has a value of 1.18.


”Long-Term
Long-Term Stock History Chart Of Bunge Limited (Click to enlarge)
”Long-Term
Long-Term Dividends History of Bunge Limited (BG) (Click to enlarge)
”Long-Term
Long-Term Dividend Yield History of Bunge Limited (NYSE: BG) (Click to enlarge)

FedEx Corporation (NYSE:FDX) has a market capitalization of $27.56 billion. The company employs 101,000 people, generates revenue of $42.680 billion and has a net income of $2.032 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.304 billion. The EBITDA margin is 12.43 percent (the operating margin is 7.46 percent and the net profit margin 4.76 percent).

Financial Analysis: The total debt represents 5.57 percent of the company’s assets and the total debt in relation to the equity amounts to 11.32 percent. Due to the financial situation, a return on equity of 13.55 percent was realized. Twelve trailing months earnings per share reached a value of $6.40. Last fiscal year, the company paid $0.52 in the form of dividends to shareholders. The earnings per share are expected to grow by 21.17 for the next year and 12.41 percent for the upcoming five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.71, the P/S ratio is 0.65 and the P/B ratio is finally 1.89. The dividend yield amounts to 0.64 percent and the beta ratio has a value of 1.24.


”Long-Term
Long-Term Stock History Chart Of FedEx Corporation (Click to enlarge)
”Long-Term
Long-Term Dividends History of FedEx Corporation (FDX) (Click to enlarge)
”Long-Term
Long-Term Dividend Yield History of FedEx Corporation (NYSE: FDX) (Click to enlarge)


Take a look at the full list of cheap large capitalized stocks with highest expected earnings per share growth. The average P/E ratio amounts to 12.28 while the forward P/E ratio is 8.84. P/S ratio is 0.71 and P/B ratio 1.07. The expected earnings growth for next year amounts to 25.33 and 15.47 percent for the upcoming five years.

Cheapest Large Cap Stock List 11/2012 (Click to enlarge)

Related stock ticker symbols:
SNP, ERIC, TEL, MRO, DB, BG, TM, HMC, PBR, FDX, PKX, MITSY, IX

Selected Articles:

1 comment:

  1. Anonymous11/24/2012

    As reported by Bloomberg, the earnings yield on the S&P 500 is 6.64% (meaning earnings are 6.64% of market cap on a trailing twelve month basis), whereas the yield on junk bonds is 6.61%. So theoretically you're getting paid more to buy equity, rather than take on risky credit, with limited upside. That hasn't happened before.
    One quarrel investors may have: Just because there's been a raging bull market in credit, it doesn't mean that stocks are cheap, and that's true. But they can still be a better deal, a point that even bond guy Bill Gross is making. It's also possible, of course, that if the economy were to go off the rails, both stocks and junk bonds would get decimated together, throwing any notion of relative cheapness out the window.

    ReplyDelete

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