Value investors could be interested in the three securities listed below, as they yield low forward price-earnings ratios compared to the S&P 500's historical average of 15. The projections of future earnings are based on data from Morningstar analysts.
Freeport-McMoRan
The first stock that meets the criteria is Freeport-McMoRan Inc. (FCX, Financial), a Phoenix-based miner of copper, gold, molybdenum, silver and other metals.
Freeport-McMoRan has a forward price-earnings ratio of 13.53 (versus the industry median of 11.83), which results from Tuesday's closing price of $28.14 per share and analyst expectations for net earnings per share of about $2.08 for the next full fiscal year.
The stock has climbed 133.72% over the past year for a market capitalization of $40.88 billion and a 52-week range of $4.82 to $32.49.
GuruFocus has assigned a rating of 4 out of 10 for the company's financial strength and a rating of 6 out of 10 for its profitability.
Wall Street sell-side analysts issued a buy recommendation rating with an average price target of $32.31 per share for the stock.
Fifth Third Bancorp
The second stock that qualifies is Fifth Third Bancorp (FITB, Financial), a Cincinnati-based regional bank.
Fifth Third Bancorp has a forward price-earnings ratio of 11.02 (versus the industry median of 11.35), which derives from Tuesday's closing price of $30.32 per share and analyst expectations for earnings of approximately $2.75 per share for the next full fiscal year.
The stock has risen by nearly 3% over the past year for a market capitalization of $21.61 billion and a 52-week range of $11.10 to $32.82.
GuruFocus has assigned a rating of 3 out of 10 for the company's financial strength and a rating of 5 out of 10 for its profitability.
Wall Street sell-side analysts issued an overweight rating with an average price target of $34.72 per share for the stock.
Truist Financial
The third stock that meets the criteria is Truist Financial Corp. (TFC, Financial), a Charlotte, North Carolina-based regional bank serving individuals, small and mid-size businesses as well as private and public organizations in the Southeastern and Mid-Atlantic United States.
Truist Financial has a forward price-earnings ratio of 14.27 (versus the industry median of 11.35), which derives from Tuesday's closing price of $50.21 per share and analysts' expectations for earnings per share of approximately $3.52 for the next full fiscal year.
The stock has declined by 5.53% over the past year for a market capitalization of $67.73 billion and a 52-week range of $24.01 to $55.47.
GuruFocus has assigned a rating of 3 out of 10 for the company's financial strength and a rating of 5 out of 10 for its profitability.
Wall Street sell-side analysts issued an overweight rating with an average price target of $56.81 per share for the stock.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- A Trio of Stocks With Appealing Price-Sales Ratios
- 3 Stocks That Could Represent Bargain Opportunities
- A Trio of Stocks Growing Free Cash Flow Fast
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