Investors may find the following three stocks interesting, as they have forward price-earnings ratios that are below the S&P 500's historical average of 15. The projections of future earnings are based on data from Morningstar analysts.
Weibo Corp
The first stock that meets the criteria is Weibo Corp (WB, Financial), a Chinese communication services company operating a social media platform in the People's Republic of China.
Weibo Corp has a forward price-earnings ratio of 14.88 (versus the industry median of 27.26), which results from Wednesday's closing price of $36.43 per share and analyst expectations for net earnings per share (EPS) of $2.45 for the next full fiscal year.
The stock price has fallen by 17.1% over the past year for a market capitalization of $8.25 billion and a 52-week range of $28.93 to $55.52.
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 with an average price target of $40.34 per share of Weibo Corp.
Skechers USA Inc
The second stock that qualifies is Skechers USA Inc (SKX, Financial), a Manhattan Beach, California-based designer and marketer of footwear for men, women and children.
Skechers USA Inc has a forward price-earnings ratio of 14.2 (versus the industry median of 20.62), which is the result of Wednesday's closing price of $30.22 per share and analyst expectations for EPS of approximately $2.13 for the next full fiscal year.
The stock price has fallen by 15% over the past year for a market capitalization of $4.77 billion and a 52-week range of $17.06 to $44.50.
GuruFocus has assigned a positive rating of 6 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 a buy rating with an average price target of $38.73 per share of Skechers USA Inc.
Axalta Coating Systems Ltd
The third stock that makes the cut is Axalta Coating Systems Ltd (AXTA, Financial), a Philadelphia, Pennsylvania-based global distributor of high-performance coatings systems.
Axalta Coating Systems Ltd has a forward price-earnings ratio of 14.04 (versus the industry median of 17.57), which derives from Wednesday's closing price of $22.17 per share and analysts' expectations for EPS of $1.58 for the next full fiscal year.
The stock price has declined by 25.4% over the past year for a market capitalization of $5.22 billion and a 52-week range of $12.92 to $32.20.
GuruFocus has assigned a moderate rating of 4 out of 10 for the company's financial strength and a positive rating of 6 out of 10 for its profitability.
Wall Street sell-side analysts recommend a buy rating with an average price target of $27.56 per share of Axalta Coating Systems Ltd.
Disclosure: I have no positions in any securities mentioned.
Read more here:
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