6 Undervalued Stocks You May Want To Consider
If you are looking for stable large cap companies that are undervalued by the market, here are a few opportunities to grow your portfolio. Metrics considered include standard valuation ratios, book value, growth patterns and are supported with a combination of insider and institutional buying.
Genworth Financial Inc. (NYSE: GNW)
Although Genworth’s P/E is slightly above the industry average, Price/Sales is only 45% of the insurance companies’ average. In addition, the Price/Cash flow of 7.15 for the most recent quarter is a huge decrease from 14.69 over the trailing twelve months, making this an appealing purchase.
Eni SpA (NYSE: E)
As one of the largest oil companies, Eni features a P/E almost 25% lower than the industry average. The Price/Book and Price/Sales are approximately only one third of the oil company averages.
JPMorgan Case & Co. (NYSE: JPM)
Along with strong metrics, JP Morgan features an annual dividend payout of 2.4%. The bank’s return on sales is almost 8% greater than that of the industry while their P/E and Price/Book ratios are only 45.5% and 49.3% of the industry average, respectively. In addition, JPM is trading at a discount to its book value.
Lincoln National Corporation (NYSE: LNC)
Despite an EPS growth of 682.46% over the trailing twelve months versus the prior trailing twelve months, Lincoln National Capital is still a prime value buy. All major valuation ratios are below the insurance industry’s average, including a P/E ratio of 7.09 versus the 13.86 average.
Tyson Foods (NYSE: TSN)
Although growth is estimated to be lower than the industry average, the company’s low P/E produces a PEG ratio that suggests the market undervalues Tyson Foods. With a PEG ratio in the lowest 30% of the Food Products industry, there is a lot of room for PPS growth.
Citigroup Inc. (NYSE: C)
With 35.48% EPS growth in the last quarter versus the same quarter one year prior, $709.28B cash and total debt of $557.39B, Citigroup is an appealing value play. Along with these numbers, Price per earnings, sales and book are all notably below the industry average.
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