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13 Stocks at New 52-Week Lows with Best Dividend Yield

The trend is your friend? Trend following strategies are popular investing techniques. The strategy is to buy or sell stocks with breakout criteria in order to identify a continuing move in the same trend. A breakout is defined as a rise in the share price above or under a level of support.

I decided to analyze stocks with a market capitalization of more than $10 billion at new 52-week lows. Twenty-nine stocks met this criteria of which 26 pay dividends and 14 yielding above 4 percent. Here are my three most promising stocks at new 52-week lows with best dividend yield:

1. France Telecom (FTE) is acting within the foreign telecom services industry. The company has a market capitalization of $41.7 billion, generates revenues in an amount of $62.7 billion and a net income of $4.3 billion. It follows Price/Earnings ratio is 10.0, Price/Sales 62.7 and Price/Book ratio 14.8. Dividend Yield: 12.6 percent. The expected EPS growth for next year amounts to -10.8 and 3.3 percent for the upcoming 5 years. The long-term debt to equity ratio is 1.1.

2. Arcelor Mittal (MIT) is acting within the steel and iron industry. The company has a market capitalization of $27.2 billion, generates revenues in an amount of $87.8 billion and a net income of $3.2 billion. It follows Price/Earnings ratio is 8.5, Price/Sales 0.3 and Price/Book ratio 0.4. Dividend Yield: 4.3 percent. The expected EPS growth for next year amounts to 50.3 and 25.3 percent for the upcoming 5 years. The long-term debt to equity ratio is 0.5.

3. Credit Suisse Group (CS) is acting within the foreign money center banks industry. The company has a market capitalization of $27.2 billion, generates revenues in an amount of $27.4 billion and a net income of $3.3 billion. It follows Price/Earnings ratio is 8.3, Price/Sales 27.4 and Price/Book ratio 0.7. Dividend Yield: 6.5 percent. The expected EPS growth for next year amounts to 12.5 and 5.8 percent for the upcoming 5 years. The long-term debt to equity ratio is 1.1.

Take a look at the full list of 13 breakout stocks. The average price to earnings ratio amounts to 9.3 while the average forward price to earnings ratio amounts to 7.6. The average dividend yield is 7.8 percent. Price to book ratio is 1.2 and price to sales ratio 1.2. In average, stocks being traded 1.3 percent above 52-Week Low.

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

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Comments

tkervin
Tkervin - 3 years ago
In my semi-humble opinion, five year forward EPS earning growth estimates may be one of the most useless metrics available. I wonder what the five year forward estimates looked like in 2007?

Using the above example of Credit Suisse.........is anyone willing to bet on the accuracy of EPS forecasts for European banks five years out?

My guess is that the chance of major iron and steel producer having a five year EPS growth of 25% in a notoriously cyclical industry rapidly approaches zero.

I have never read any research study affirming the accuracy of analyst's five year forward earnings forecasts and would be happy to retract the above if any such study can be brought to my attention.

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