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Alberto Abaterusso
Alberto Abaterusso
Articles (2468) 

3 Low Forward Price-Earnings Ratio Stock Picks

Their forward-looking valuations are trading below the S&P 500's historical average

November 17, 2020 | About:

The following three companies could be of interest to investors, as their stocks have forward price-earnings ratios that are trading below the S&P 500's historical average of 15. The projections of future earnings are based on data from Morningstar analysts.

Luxfer Holdings PLC

The first stock that qualifies is Luxfer Holdings PLC (NYSE:LXFR), a Manchester, United Kingdom-based manufacturer of specialty industrial machineries such as high-performance materials and high-pressure gas cylinders for applications in various industries.

Luxfer has a forward price-earnings ratio of 12.56 (versus the industry median of 21.36), which results from Monday's closing price of $14.03 per share and analyst expectations for net earnings per share (EPS) of approximately $1.12 for the next full fiscal year.

The stock price has fallen by 17.1% over the past year for a market capitalization of $399.14 million and a 52-week range of $10.27 to $19.35.

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

Wall Street sell-side analysts recommend an overweight rating with an average price target of $19.67 per share of Luxfer Holdings PLC.

Ferro Corp

The second stock that makes the cut is Ferro Corp (NYSE:FOE), a Mayfield Heights, Ohio-based producer and marketer of specialty materials for manufacturers of ceramic tiles, building materials, automobile parts and various electronic components.

Ferro has a forward price-earnings ratio of 14.81 (versus the industry median of 19.81), which derives from Monday's closing price of $14.08 per share and analyst expectations for EPS of approximately 95 cents for the next full fiscal year.

The stock price has risen by nearly 10% over the past year for a market capitalization of $1.16 billion and a 52-week range of $7.52 to $15.67.

GuruFocus has assigned a rating of 4 out of 10 for the company's financial strength and a rating of 6 out of 10 for its profitability.

Wall Street sell-side analysts recommend an overweight rating with an average price target of $16 per share of Ferro Corp.

eHealth Inc

The third stock that holds the criteria is eHealth Inc (NASDAQ:EHTH), a Santa Clara, California-based private health insurance broker serving American and Chinese individuals, households and small businesses.

eHealth Inc has a forward price-earnings ratio of 14.97 (versus the industry median of 11.74), which derives from Monday's closing price of $73.98 per share and analysts' expectations for EPS of approximately $4.94 for the next full fiscal year.

The stock price has declined by 10.53% over the past year for a market capitalization of $1.92 billion and a 52-week range of $60.40 to $152.19.

GuruFocus has assigned a rating of 7 out of 10 for the company's financial strength and a rating of 6 out of 10 for its profitability.

Wall Street sell-side analysts recommend a buy rating with an average price target of $128 per share of eHealth Inc.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master\\\'s Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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