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A Trio of Low Forward Price-Earnings Ratio Stocks

Pfizer Inc tops the list

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Alberto Abaterusso
Jul 19, 2020
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One strategy to come across value opportunities is to screen for stocks with an enticing forward price-earnings ratio. 

The following three stocks have a forward price-earnings ratio that stands below the S&P 500 index's historical average of 15. Estimates of future earnings are based on data from Morningstar analysts.

Pfizer Inc

The first company that meets the criteria is Pfizer Inc (

PFE, Financial), the New York-based drug giant.

Pfizer Inc has a forward price-earnings ratio of 12.8 (versus the industry median of 19.42), which results from Friday’s share price of $36.25 and analyst expectations for earnings per share (EPS) of $2.83 for the next full fiscal year.

The stock price lost 15.3% over the past year for a market capitalization of $201.36 billion and a 52-week range of $27.88 to $44.56.

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GuruFocus has assigned a positive rating of 5 out of 10 for the company’s financial strength and a very good rating of 7 out of 10 for its profitability.

Wall Street sell-side analysts recommend an overweight rating for Pfizer Inc with an average price target of $40.

Regions Financial Corp

The second company under consideration is Regions Financial Corp (

RF, Financial), a Birmingham, Alabama-based regional bank.

Regions Financial Corp has a forward price-earnings ratio of 13.59 (versus the industry median of 10.93), which is the result of Friday’s closing share price of $10.32 and analyst expectations for EPS of approximately 75 cents for the next full fiscal year.

The stock price has fallen nearly 32% over the past year, determining a market capitalization of $9.9 billion and a 52-week range of $6.94 to $17.54.

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GuruFocus assigned a low rating of 3 out of 10 to the company’s financial strength and a moderate rating of 4 out of 10 to its profitability.

Wall Street sell-side analysts issued an overweight recommendation rating with an average target price of $12.65 per share for Regions Financial Corp.

Intel Corp

The third company that makes the cut is Intel Corp (

INTC, Financial), a Santa Clara, California-based global provider of semiconductors.

Intel Corp has a forward price-earnings ratio of 12.9 (versus the industry median of 25.88), which derives from Friday’s closing share price of $60 and analysts' earnings expectations of $4.65 per share for the next full fiscal year.

The stock price has risen nearly 17% over the past year for a market capitalization of $254.04 billion and a 52-week range of $42.86 to $69.29.

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GuruFocus has assigned a positive rating of 6 out of 10 for the company’s financial strength and a very high rating of 9 out of 10 for its profitability.

Wall Street sell-side analysts recommend a hold rating with an average target price of $64.82 per share for Intel Corp.

Disclosure: I have no positions in any securities mentioned in this article.

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