Cheapest large capitalized
stocks with highest earnings per share growth; originally published at “long-term-investments.blogspot.com. Growth at cheap price ratios is one the keys for a sucessful long-term investment.
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. Eleven companies fulfilled the mentioned criteria
of which ten companies have a buy or better recommendation. Nine of the results
pay dividends.
Here are my favorites:
The Travelers Companies (NYSE:TRV) has a market capitalization of $29.73 billion. The company employs 30,000 people, generates revenue of $25.446 billion and has a net income of $1.426 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.416 billion. The EBITDA margin is 25.21 percent (the operating margin is 5.31 percent and the net profit margin 5.60 percent).
Financial Analysis:
The total debt represents 6.31 percent of the company’s assets and the total debt in relation to the equity amounts to 26.98 percent. Due to the financial situation, a return on equity of 5.67 percent was realized. Twelve trailing months earnings per share reached a value of $7.00. Last fiscal year, the company paid $1.59 in the form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 11.13, the P/S ratio is 1.14 and the P/B ratio is finally 1.22. The dividend yield amounts to 2.41 percent and the beta ratio has a value of 0.67.
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| Long-Term Stock History Chart Of The Travelers Companies (TRV) |
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| Long-Term Dividends History of The Travelers Companies (TRV) |
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| Long-Term Dividend Yield History of The Travelers Companies (TRV) |
The Allstate Corporation (NYSE:ALL) has a market capitalization of $18.49 billion. The company employs 37,000 people, generates revenue of $32.654 billion and has a net income of $788.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.309 billion. The EBITDA margin is 28.51 percent (the operating margin is 2.99 percent and the net profit margin 2.41 percent).
Financial Analysis:
The total debt represents 4.71 percent of the company’s assets and the total debt in relation to the equity amounts to 31.64 percent. Due to the financial situation, a return on equity of 4.18 percent was realized. Twelve trailing months earnings per share reached a value of $5.29. Last fiscal year, the company paid $0.84 in the form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 8.36, the P/S ratio is 0.64 and the P/B ratio is finally 1.16. The dividend yield amounts to 2.04 percent and the beta ratio has a value of 1.48.
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| Long-Term Stock History Chart Of The Allstate Corporation (ALL) |
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| Long-Term Dividends History of The Allstate Corporation (ALL) |
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| Long-Term Dividend Yield History of The Allstate Corporation (ALL) |
Bunge Limited (NYSE:BG) has a market capitalization of $11.40 billion. The company employs 35,000 people, generates revenue of $58.743 billion and has a net income of $896.00 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.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 13.30, the P/S ratio is 0.19 and the P/B ratio is finally 1.02. The dividend yield amounts to 1.40 percent and the beta ratio has a value of 1.22.
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| Long-Term Stock History Chart Of Bunge Limited (BG) |
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| Long-Term Dividends History of Bunge Limited (BG) |
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| Long-Term Dividend Yield History of Bunge Limited (BG) |
Here is the full table with
some fundamentals (TTM):
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| Cheapest Large Capitalized Stocks (Click to enlarge) |
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Related stock ticker symbols:
SNP, FCX, TRV,
MRO, CB, ALL, DB, BG, PBR-A
Selected Articles:
* I
have no positions in any stocks mentioned, and no plans to initiate any
positions within the next 72 hours. I receive no compensation to write about
any specific stock, sector or theme.
Some well known large cap stocks have been hit very hard the past couple months. This has created some potential buying opportunities. The stocks below are trading at valuations that appear to be a major buying opportunity for any long-term investor.
ReplyDeleteSome of these stocks fell on earnings disappointments, analyst downgrades, competitive concerns or lowered guidance. Often these are short-term events, so these situations and low prices often provide the best buying opportunities.
While many investors are now climbing over themselves to buy overvalued oil stocks at 20 to 25 times earnings, I am taking profits in the oil sector and investing some of the proceeds in these great American companies at bargain prices.
By comparison, these names are trading at 7 to 12 times earnings and are likely to hold up well in the next period of market turmoil.
All of the following stocks are great buys. I think that VZ and T also look undervalued at the moment. Both stocks have great yields.
ReplyDeleteI think I'll check out these suggestions; it's about time I diversify my portfolio once again.
ReplyDelete