Investors may want to consider the following securities, as their forward price-earnings ratios are lower than the S&P 500's historical average of 15. The projections of future earnings are based on data from Morningstar analysts.
Discover Financial Services
The first stock that makes the cut is Discover Financial Services (DFS, Financial), a Riverwoods, Illinois-based provider of credit services.
Discover Financial Services has a forward price-earnings ratio of 9.47 (versus the industry median of 12.33), which results from Wednesday's closing price of $115.46 per share and analyst expectations for net earnings per share of approximately $12.19 for the next full fiscal year.
The stock has risen by 133.4% over the past year for a market capitalization of $35.20 billion and a 52-week range of $45.40 to $121.43.
GuruFocus has assigned a rating of 3 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 median rating for this stock with an average price target of $117.94 per share.
Suncor Energy Inc
The second stock that makes the cut is Suncor Energy Inc (SU, Financial), a Canadian petroleum and gas integrated operator with mineral activities in the U.S. and internationally.
Suncor Energy Inc has a forward price-earnings ratio of 12.35, which derives from Wednesday's closing price of $23.08 per share and analyst expectations for earnings of approximately $1.87 per share for the next full fiscal year.
The stock has grown by 32.42% over the past year for a market capitalization of $34.93 billion and a 52-week range of $10.67 to $24.34.
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 a median rating of overweight with an average price target of $27.74 per share for this stock.
ArcelorMittal SA
The third stock that makes the cut is ArcelorMittal SA (MT, Financial), a Luxembourg-based global steel producing company with operating activities in the Americas, Europe, Africa and Asia.
ArcelorMittal SA has a forward price-earnings ratio of 6.44 (versus the industry median of 9.64), which derives from Wednesday's closing price of $31.05 per share and analyst expectations for earnings of approximately $4.89 per share for the next full fiscal year.
The stock has risen by 215.23% over the past year for a market capitalization of $33 billion and a 52-week range of $9.47 to $33.95.
GuruFocus has assigned a rating of 6 out of 10 for the company's financial strength and a rating of 4 out of 10 for its profitability.
Wall Street sell-side analysts recommend a median rating of buy and have established an average price target of $39.01 per share for the stock.
Disclosure: I have no positions in any securities mentioned.
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
