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Alberto Abaterusso
Alberto Abaterusso
Articles (2616) 

A Trio of Stocks With Attractive Forward Price-Earnings Ratios

They are below the S&P 500's historical average

December 14, 2020 | About:

Value investors could be interested in the following three companies, 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.

Prudential PLC

The first stock that makes the cut is Prudential PLC (NYSE:PUK), a London, United Kingdom-based life insurance company, providing several long-term savings and protection products to its clients internationally.

Prudential has a forward price-earnings ratio of 10.35 (versus the industry median of 11.41), which results from Friday's closing price of $34.28 per share and analyst expectations for net earnings per share (EPS) of approximately $3.31 for the next full fiscal year.

The stock price has fallen by 10.57% over the past year for a market capitalization of $45.09 billion and a 52-week range of $15.68 to $39.10.

GuruFocus has assigned a score of 5 out of 10 for both the financial strength rating and profitability rating of the company.

As of December, Wall Street sell-side analysts recommend two strong buy ratings for the stock with an average price target of $42 per share.

Sun Life Financial Inc

The second stock that qualifies is Sun Life Financial Inc (NYSE:SLF), a Toronto, Canada-based provider of several financial services such as asset management, insurance and wealth management to North American and international clients.

Sun Life Financial has a forward price-earnings ratio of 9.7 (versus the industry median of 11.41), which derives from Friday's closing price of $44.52 per share and analyst expectations for EPS of approximately $4.59 for the next full fiscal year.

The stock price has fallen by nearly 1.02% over the past year for a market capitalization of $26.10 billion and a 52-week range of $24.37 to $50.13.

GuruFocus has assigned a score of 5 out of 10 for both the financial strength rating and profitability rating of the company.

As of December, Wall Street sell-side analysts recommend one strong buy rating and one buy rating for the stock with an average price target of $45.65 per share.

China Telecom Corp

The third stock that meets the criteria is China Telecom Corp Ltd (CHA), a Hong Kong-based provider of various telecommunication services in the People's Republic of China.

China Telecom has a forward price-earnings ratio of 6.61 (versus the industry median of 18.87), which derives from Friday's closing price of $27.43 per share and analysts' expectations for EPS of approximately $4.15 for the next full fiscal year.

The stock price has declined by 30.64% over the past year for a market capitalization of $22.20 billion and a 52-week range of $26.66 to $41.89.

GuruFocus has assigned a rating of 5 out of 10 for the company's financial strength and a rating of 6 out of 10 for its profitability.

As of December, Wall Street sell-side analysts recommend two strong buy ratings for the stock with an average price target of $43.77 per share.

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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