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Alberto Abaterusso
Articles (2624) 

3 Stocks With Low Forward Price-Earnings Ratios

Freeport-McMoRan tops the list

February 03, 2021 | About:

Value investors could be interested in the three securities listed below, as they yield low forward price-earnings ratios compared to the S&P 500's historical average of 15. The projections of future earnings are based on data from Morningstar analysts.

Freeport-McMoRan

The first stock that meets the criteria is Freeport-McMoRan Inc. (NYSE:FCX), a Phoenix-based miner of copper, gold, molybdenum, silver and other metals.

Freeport-McMoRan has a forward price-earnings ratio of 13.53 (versus the industry median of 11.83), which results from Tuesday's closing price of $28.14 per share and analyst expectations for net earnings per share of about $2.08 for the next full fiscal year.

The stock has climbed 133.72% over the past year for a market capitalization of $40.88 billion and a 52-week range of $4.82 to $32.49.

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 issued a buy recommendation rating with an average price target of $32.31 per share for the stock.

Fifth Third Bancorp

The second stock that qualifies is Fifth Third Bancorp (NASDAQ:FITB), a Cincinnati-based regional bank.

Fifth Third Bancorp has a forward price-earnings ratio of 11.02 (versus the industry median of 11.35), which derives from Tuesday's closing price of $30.32 per share and analyst expectations for earnings of approximately $2.75 per share for the next full fiscal year.

The stock has risen by nearly 3% over the past year for a market capitalization of $21.61 billion and a 52-week range of $11.10 to $32.82.

GuruFocus has assigned a rating of 3 out of 10 for the company's financial strength and a rating of 5 out of 10 for its profitability.

Wall Street sell-side analysts issued an overweight rating with an average price target of $34.72 per share for the stock.

Truist Financial

The third stock that meets the criteria is Truist Financial Corp. (NYSE:TFC), a Charlotte, North Carolina-based regional bank serving individuals, small and mid-size businesses as well as private and public organizations in the Southeastern and Mid-Atlantic United States.

Truist Financial has a forward price-earnings ratio of 14.27 (versus the industry median of 11.35), which derives from Tuesday's closing price of $50.21 per share and analysts' expectations for earnings per share of approximately $3.52 for the next full fiscal year.

The stock has declined by 5.53% over the past year for a market capitalization of $67.73 billion and a 52-week range of $24.01 to $55.47.

GuruFocus has assigned a rating of 3 out of 10 for the company's financial strength and a rating of 5 out of 10 for its profitability.

Wall Street sell-side analysts issued an overweight rating with an average price target of $56.81 per share for the stock.

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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