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Cheapest Large Caps with Highest Expected Growth as of July 2012

Cheapest Large Capitalized Stocks With Highest Earnings Per Share Growth By Dividend Yield – Stock, Capital, Investment. 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 by at least 20 percent. Despite the strong growth, they still have a P/E ratio of less than 15 and a P/S and P/B ratio of less than two. Twenty-two companies fulfilled the mentioned criteria of which 14 companies have a buy or better recommendation. Only 19 dividends.

The best yielding stock is still Banco Bilbao (NYSE:BBVA) with a yield of 9.59 percent. The company is followed by the oil and gas pipeline operator Energy Transfer Partners (NYSE:ETP) and the Chinese oil and gas company China Petroleum (NYSE:SNP).

Here are my favorites:

Freeport-McMoRan Copper & Gold (NYSE:FCX) has a market capitalization of $30.96 billion. The company employs 31,800 people, generates revenue of $20,880.00 million and has a net income of $5,731.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,094.00 million. The EBITDA margin is 48.34 percent (operating margin 43.45 percent and net profit margin 27.45 percent).

Financial Analysis: The total debt represents 11.03 percent of the company’s assets and the total debt in relation to the equity amounts to 22.61 percent. Due to the financial situation, a return on equity of 32.40 percent was realized. Twelve trailing months earnings per share reached a value of $3.32. Last fiscal year, the company paid $1.50 in form of dividends to shareholders. Earnings are expected to grow by 40.58 percent for the next year and 5.73 percent for the upcoming five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.83, P/S ratio 1.54 and P/B ratio 2.05. Dividend Yield: 3.70 percent. The beta ratio is 1.99.

International Paper (NYSE:IP) has a market capitalization of $14.04 billion. The company employs 61,500 people, generates revenue of $26,034.00 million and has a net income of $1,147.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,294.00 million. The EBITDA margin is 12.65 percent (operating margin 5.60 percent and net profit margin 4.41 percent).

Financial Analysis: The total debt represents 36.71 percent of the company’s assets and the total debt in relation to the equity amounts to 149.67 percent. Due to the financial situation, a return on equity of 19.21 percent was realized. Twelve trailing months earnings per share reached a value of $2.78. Last fiscal year, the company paid $0.98 in form of dividends to shareholders. Earnings are expected to grow by 29.30 percent for the next year and 8.37 percent for the upcoming five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.57, P/S ratio 0.54 and P/B ratio 2.13. Dividend Yield: 3.25 percent. The beta ratio is 2.20.

China Telecom (NYSE:CHA) has a market capitalization of $38.03 billion. The company employs 309,799 people, generates revenue of $38,447.45 million and has a net income of $2,604.26 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $11,711.65 million. The EBITDA margin is 30.46 percent (operating margin 9.85 percent and net profit margin 6.77 percent).

Financial Analysis: The total debt represents 12.43 percent of the company’s assets and the total debt in relation to the equity amounts to 20.35 percent. Due to the financial situation, a return on equity of 6.58 percent was realized. Twelve trailing months earnings per share reached a value of $3.14. Last fiscal year, the company paid $1.11 in form of dividends to shareholders. Earnings are expected to grow by 33.10 percent for the next year and 14.55 percent for the upcoming five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.96, P/S ratio 1.02 and P/B ratio 0.95. Dividend Yield: 2.31 percent. The beta ratio is 0.91.

Baker Hughes (BHI) has a market capitalization of $20.23 billion. The company employs 57,700 people, generates revenue of $19,831.00 million and has a net income of $1,743.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,877.00 million. The EBITDA margin is 19.55 percent (operating margin 12.91 percent and net profit margin 8.79 percent).

Financial Analysis: The total debt represents 16.38 percent of the company’s assets and the total debt in relation to the equity amounts to 25.84 percent. Due to the financial situation, a return on equity of 11.65 percent was realized. Twelve trailing months earnings per share reached a value of $4.18. Last fiscal year, the company paid $0.60 in form of dividends to shareholders. Earnings are expected to grow by 20.23 percent for the next year and 16.61 percent for the upcoming five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.05, P/S ratio 1.01 and P/B ratio 1.27. Dividend Yield: 1.32 percent. The beta ratio is 1.57.

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 9.52 while the forward P/E ratio is 8.89. P/S ratio is 0.97 and P/B ratio 0.97. The expected earnings growth for next year amounts to 56.11 and 15.16 percent for the upcoming five years.

Related stock ticker symbols:

BBVA, ETP, SNP, ERIC, BCS, FCX, AMAT, IP, DB, GGB, TLM, CHA, CHK, BAM, MS, DVN, BHI, UBS, BAC, MITSY, GM, ING

Selected Articles:

· The Best S&P 500 Dividend Stocks With Single Digit P/E Ratios

· Best Dividend Paying Stock List As Of July 2012

· 13 Of The Cheapest Dividend Achievers

· 12 Of The Cheapest S&P 500 Dividend Stocks

About the author:

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

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