To enhance the number of chances to unearth value opportunities, investors may want to screen the market for stocks with a favorable forward price-earnings ratio.
The following stocks have a forward price-earnings ratio that is lower than the S&P 500 index's historical average of 15, making them of potential interest to value investors.
Integer Holdings Corp
The first company to consider is Integer Holdings Corp (ITGR, Financial), a Plano, Texas-based manufacturer of medical devices.
Integer Holdings has a forward price-earnings ratio of 14.71 (versus the industry median of 32.89), which results from Friday’s share price of $76.46 and analyst expectations of 5.5% growth in earnings per share over the next full fiscal year.
GuruFocus has assigned a moderate rating of 4 out of 10 to the company’s financial strength and a very good rating of 7 out of 10 to its profitability.
The stock price has increased 1.54% in the past year for a market cap of $2.51 billion and a 52-week range of $46.01 to $99.95.
The stock has a buy recommendation rating on Wall Street and an average target price of $97.50.
SS&C Technologies Holdings Inc
The second company to consider is SS&C Technologies Holdings Inc (SSNC, Financial), a Windsor, Connecticut-based provider of software products and related services to financial services and healthcare companies.
SS&C Technologies Holdings has a forward price-earnings ratio of 14.99 (versus the industry median of 24.33), which is the result of a share price of $58.50 as of May 8 and analyst expectations of $3.90 in EPS for the next full fiscal year.
GuruFocus has assigned a low rating of 3 out of 10 to the company’s financial strength but a high rating of 9 out of 10 to its profitability.
The stock price was fairly flat in the past year. The stock has a market capitalization of $14.99 billion and a 52-week range of $29.51 to $67.73.
The stock has a buy recommendation rating on Wall Street and an average target price of $63.80.
FMC Corp
The third company to consider is FMC Corp (FMC, Financial), a Philadelphia, Pennsylvania-based provider of several agricultural products for crop protection and plant health.
FMC Corp has a forward price-earnings ratio of 14.95 (versus the industry median of 17.24), which is the result of a share price of $93.48 as of May 8 and analyst expectations of EPS of $6.25 for the next full fiscal year.
GuruFocus has assigned a moderate rating of 4 out of 10 to the company’s financial strength and a higher rating of 8 out of 10 to its profitability.
The stock price has risen by almost 18% in the past year for a market capitalization of $12.1 billion and a 52-week range of $56.77 to $108.77.
The stock has a buy recommendation rating on Wall Street and an average target price of $109.68 per share.
Disclosure: I have no positions in any securities mentioned in this article.
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