11 Large-Caps Trading At Bargain Bin Prices
Markets have been on a wild ride this year as factors like weak energy prices, a strengthening dollar and global economic turmoil have weighed on some of Wall Street's biggest names.
For investors looking to snap up bargains while the chips are down, the current market is full of opportunities with several large-cap stocks trading at significant discounts.
1. Seagate Technology PLC (NASDAQ: STX)
Seagate Technology is a hard disk drive manufacturer with a great deal of control over its component suppliers. Over the past three months, Seagate shares have lost 22.82 percent to trade at $37.13. The firm has been plagued by weak earnings and rumors of a buyout from Western Digital Corp (NASDAQ: WDC).
However, analysts at both Deutsche Bank and Jefferies have given Seagate shares a buy rating despite the company's struggles. Many are expecting hard disk drives to eventually go the way of the dodo, but that will occur over a significant period of time. In the meantime, Seagate may be able to make necessary changes to its business in order to keep up with shifting customer demands.
- Market Cap: 11.43 billion
- P/E: 7.12
- EPS: 5.22
2. Mylan NV (NASDAQ: MYL)
Mylan develops, manufactures, markets and distributes pharmaceutical products. The company's shares have fallen 28.62 percent over the past three months, bringing their price down to $40.89. The firm is in the midst of a hostile takeover battle for Perrigo Company plc Ordinary Shares (NYSE: PRGO), but Perrigo has asked a judge to step in and block the pharmaceutical firm's advances.
The news sent Mylan's stock down 7 percent this week. Mylan has offered Perrigo shareholders a tender offer of $75 in cash and 2.3 of its shares in exchange for each Perrigo share. They will have until November 13 to decide, and if the deal moves forward, Mylan will become one of the largest generic and OTC drug companies in the world.
Many analysts see the firm's stock price increasing to $69 in the short term, with high estimates reaching all the way to $90, making the firm's current share price look like a bargain.
- Market Cap: 41.83 billion
- P/E: 18.78
- EPS: 2.18
3. PACCAR Inc (NASDAQ: PCAR)
PACCAR Inc is the United States' third largest truck manufacturer. The firm's share price has fallen 19.1 percent over the past three months to trade at $52.77. However, despite the recent decline, many analysts see the firm's short-term target price at around $65, with high estimates reaching up to $85.
The firm may have a bright future, as it is expected to introduce a new, lighter line of diesel engines in the United States, which have already proven successful in Europe. Success generated by the new engine will likely give PACCAR's bottom line a boost.
- Market Cap: 11.82 billion
- P/E: 11.81
- EPS: 4.47
4. Whole Foods Market, Inc. (NASDAQ: WFM)
Whole Foods is an organic foods grocery store based in the United States that has been credited with Americans' push for healthier, organic food offerings. However, the company's shares have fallen more than 34 percent over the past year, as investors began to worry about weak earnings reports and struggling financials.
Despite the pessimism surrounding the firm, some say the grocery store has a lot of upside potential, and that the current share price of just $32.95 represents a buying opportunity. The firm is opening up smaller, express stores called "365," which will offer a variety of lower-cost foods designed to appeal to millennials. Many believe that the grocery chain still has a lot of room to grow and that in the long term, holding Whole Foods could be a lucrative addition to investors' portfolios.
- Market Cap: 11.89 billion
- P/E: 19.64
- EPS: 1.68
5. National-Oilwell Varco, Inc. (NYSE: NOV)
National-Oilwell Varco is an oil equipment and services supplier. The company's stock price has been crushed this year, falling 40.18 percent to trade at $39.40. Low oil prices and declining rig counts in the United States have caused investors to pull money out of the energy sector and negatively impacted shares.
However, long-term investors can expect oil prices to increase eventually as the market has a natural up and down cycle. Many analysts say that National-Oilwell Varco is a smart choice for those who believe oil prices will eventually stabilize because of the firm's dominance in rig supply and repair.
In the United States and abroad, demand for new rigs and replacement equipment is likely to continue increasing and the company's financials suggest that it is strong enough to ride out the current storm.
- Market Cap: 15.13 billion
- P/E: 8.70
- EPS: 4.51
6. Oracle Corporation (NYSE: ORCL)
Oracle is an information management firm and software supplier. The company is in the midst of transitioning 95 percent of its offerings to the cloud, a move that is widely expected to create a great deal of volatility for the firm. Oracle shares have been downgraded by a number of analysts recently, pushing share prices down to $36.62, an 18.57 percent decline over the past year.
However, many believe that worries about the cloud transition are overdone, and that the move to cloud-based services will be good for the company's future. That means that for long-term investors, snapping Oracle up while its share price is being pummeled could be a good move.
- Market Cap: 157.19 billion
- P/E: 17.20
- EPS: 2.13
7. Skyworks Solutions Inc (NASDAQ: SWKS)
Skyworks Solutions is a semiconductor manufacturer that works with analog and mixed signal devices that allow wireless connectivity. The company's share price has fallen 25.3 percent over the past three months to $77.67, something that some analysts believe could be a lucrative entry point for a company that pays a $1.04 dividend per share.
Drexel Hamilton recently upgraded the stock to a Buy rating with a $110 price target, saying that the firm's plans to acquire PMC-Sierra Inc (NASDAQ: PMCS) will likely improve margins. However, some are worried about the acquisition, saying that it may not be worth the cost.
- Market Cap: 14.93 billion
- P/E: 20.32
- EPS: 3.82
8. Apple Inc. (NASDAQ: AAPL)
Tech giant Apple may seem like an unlikely contender on a list of bargain basement prices, but over the past three months, the company's share price has lost nearly 13 percent as investors worry about whether the firm can keep up with such strong revenue growth.
However, some analysts see the firm's shares increasing exponentially over the next year. Pipper Jaffray's senior analyst has given Apple shares a $172 12-month price target, saying that Apple's new phone upgrade program could give iPhone sales a major boost and may persuade more people to switch over to Apple products. While a 12-month target price is far from being a sure thing, investors who believe the company will be able to maintain its market dominance may see its current $113.76 share price as a discount price.
- Market Cap: 648.80 billion
- P/E: 13.14
- EPS: 8.66
9. International Business Machines Corp. (NYSE: IBM)
This month, IBM reported weaker-than-expected third-quarter results, causing many investors to back away from the company's shares. On top of having a dismal third quarter, the firm slashed its earnings guidance for the full year.
However, for patient, long-term investors, IBM's 14.21 percent decline over the past six months could represent a cheap entry point. IBM has been working on a new computer that will analyze medical data in order to make diagnosing and treating cancer patients faster and more streamlined. The computer is able to look at individual cases and create specialized treatment plans much faster than a medical specialist could, and its introduction to hospitals around the country could be groundbreaking.
Many analysts believe that although IBM is in the trenches now, the firm's overall strategic plans are good and that in the long term, the company will regain momentum.
- Market Cap: 137.82 billion
- P/E: 9.67
- EPS: 14.57
10. Caterpillar Inc. (NYSE: CAT)
Caterpillar is a construction and mining equipment manufacturer that has been struggling under the weight of the declining mining and coal industry. The firm has also been hurt by the slowdown in China and the strengthening U.S. dollar, all of which have pushed share prices 23.88 percent lower over the past year.
While some believe that now is the time to invest with commodity stocks heavily out of favor, an investment in Caterpillar still carries a lot of risk. Barclays recently estimated that the U.S. machinery sector isn't expected to return to peak levels for another eight years, and worries about the viability of a Chinese recovery are likely to continue hurting the firm's share price.
- Market Cap: 42.33
- P/E: 11.94
- EPS: 5.83
11. Wal-Mart Stores, Inc. (NYSE: WMT)
This discount retail chain has seen better days; Wal-Mart shares have fallen 31.72 percent over the past year to trade at $58.63. Several factors have contributed to the firm's decline, including rising competition from online retailers, an increase in minimum wage requirements and now investors are worried about news that social security won't be adjusted for inflation in the coming year. That means that much of Wal-Mart's low-income customer base will have less to spend.
However, some analysts say the firm's low-priced shares could make it an attractive entry point for long-term investors, as the firm isn't expected to go under any time soon. The firm has a 3.3 percent dividend yield, something that could be attractive to those who are willing to wait a few years for the company to recover.
- Market Cap: 188.35 billion
- P/E: 12.26
- EPS: 4.78
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