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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 (BBVA) with a yield of 9.59 percent. The company is followed by the oil and gas pipeline operator Energy Transfer Partners (ETP) and the Chinese oil and gas company China Petroleum (SNP).

Here are my favorites:

Freeport-McMoRan Copper & Gold (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 (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 (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.

Visit Dividend's Website


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