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Cheapest Large Caps with Highest Expected Growth as of May 2012

Here is a current sheet of America’s cheapest large caps with the highest expected growth for the upcoming fiscal year. Stocks from the sheet have a market capitalization of more than USD10 billion and earnings per share are expected to grow for at least 20 percent. Despite the strong growth, they still have a P/E ratio of less than 15 and a P/S ratio of less than 2. Twenty-five companies fulfilled the mentioned criteria of which twenty-one companies pay dividends and the same number of stocks has a buy or better recommendation.

The best yielding stock is the Argentinean bank Banco Bilbao (NYSE:BBVA) with a yield of 8.93 percent. The company is followed by the oil and gas pipeline operator Energy Transfer Partners (NYSE:ETP) and the gas utility National Grid (NYSE:NGG).

Here is the table with some fundamentals:

Time Warner Cable (NYSE:TWC) has a market capitalization of $23.80 billion. The company employs 47,300 people, generates revenues of $19,675.00 million and has a net income of $1,667.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,096.00 million. Because of these figures, the EBITDA margin is 36.07 percent (operating margin 20.68 percent and the net profit margin finally 8.47 percent).

Financial Analysis: The total debt representing 55.39 percent of the company’s assets and the total debt in relation to the equity amounts to 355.14 percent. Due to the financial situation, a return on equity of 19.76 percent was realized. Twelve trailing months earnings per share reached a value of $5.23. Last fiscal year, the company paid $1.92 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.57, P/S ratio 1.22 and P/B ratio 3.20. Dividend Yield: 2.93 percent. The beta ratio is 0.74.

United Technologies (UTX) has a market capitalization of $67.39 billion. The company employs 199,900 people, generates revenues of $58,190.00 million and has a net income of $5,374.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,387.00 million. Because of these figures, the EBITDA margin is 16.13 percent (operating margin 13.92 percent and the net profit margin finally 9.24 percent).

Financial Analysis: The total debt representing 16.70 percent of the company’s assets and the total debt in relation to the equity amounts to 46.89 percent. Due to the financial situation, a return on equity of 23.02 percent was realized. Twelve trailing months earnings per share reached a value of $5.70. Last fiscal year, the company paid $1.86 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.97, P/S ratio 1.15 and P/B ratio 3.06. Dividend Yield: 2.61 percent. The beta ratio is 1.05.

Johnson Controls (JCI) has a market capitalization of $20.65 billion. The company employs 162,000 people, generates revenues of $40,833.00 million and has a net income of $1,741.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,718.00 million. Because of these figures, the EBITDA margin is 6.66 percent (operating margin 5.17 percent and the net profit margin finally 4.26 percent).

Financial Analysis: The total debt representing 17.34 percent of the company’s assets and the total debt in relation to the equity amounts to 46.60 percent. Due to the financial situation, a return on equity of 15.38 percent was realized. Twelve trailing months earnings per share reached a value of $2.42. Last fiscal year, the company paid $0.64 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.53, P/S ratio 0.51 and P/B ratio 1.87. Dividend Yield: 2.37 percent. The beta ratio is 1.83.

News Corp (NWSA) has a market capitalization of $47.32 billion. The company employs 51,000 people, generates revenues of $33,405.00 million and has a net income of $3,148.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,700.00 million. Because of these figures, the EBITDA margin is 17.06 percent (operating margin 12.50 percent and the net profit margin finally 9.42 percent).

Financial Analysis: The total debt representing 25.00 percent of the company’s assets and the total debt in relation to the equity amounts to 52.51 percent. Due to the financial situation, a return on equity of 10.96 percent was realized. Twelve trailing months earnings per share reached a value of $1.40. Last fiscal year, the company paid $0.15 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.00, P/S ratio 1.42 and P/B ratio 1.74. Dividend Yield: 0.87 percent. The beta ratio is 1.46.

Take a look at the full list of cheap large capitalized stocks with highest expected earnings per share growth. The average P/E ratio amounts to 10.13 while the forward P/E ratio is 8.03. P/S ratio is 0.93 and P/B ratio 1.82. The expected earnings growth for next year amounts to 32.04 and 15.56 percent for the upcoming five years.

Related stock ticker symbols:

BBVA, ETP, NGG, NUE, FCX, STX, IP, AMAT, BCS, TWC, MRO, GGB, VLO, DB, UTX, BA, JCI, CHA, BHI, UBS, NWSA, MITSY, GM, ING, DTV

Selected Articles:

· The Best Yielding Large Cap Industrial Stocks

· The Best Yielding Large Cap Consumer Stocks

· The Best Yielding Large Cap Services Stocks

· The Best Yielding Large Cap Basic Material Stocks

· The Best Yielding Large Cap Utility Stocks

· The Best Yielding Large Cap Technology Stocks

· The Best Yielding Large Cap Healthcare Dividend Stocks

About the author:

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

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Rating: 4.5/5 (4 votes)

Comments

paxwax
Paxwax - 3 years ago


Just to mention that BBVA is a Spanish company, although with important investments in several South American countries. To say a company is Argentinian today is not doing that company any favors, bearing in mind the rotten government which that country has. I venture to say that any investment in Santander (STD) or BBVA will pay off handsomely in two or three years, and you are getting marvelous dividends in the meantime... but €uro depreciation is a factor you should be on the watch for.

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