Investors could be interested in the following securities, as their forward price-earnings ratios are lower than the S&P 500's historical average price-earnings ratio of 15. The projections of future earnings are based on data from Morningstar analysts.
Axos Financial Inc
The first stock that makes the cut is Axos Financial Inc (AX, Financial), a Las Vegas, Nevada-based regional bank providing banking products and other financial services to U.S. consumers and businesses.
Axos Financial Inc has a forward price-earnings ratio of 13.17 (versus the industry median of 11.22), which results from Thursday’s closing price of $47.32 per share and analyst expectations for net earnings per share of approximately $3.59 for the next full fiscal year.
The stock has climbed 139.59% over the past year for a market capitalization of $2.80 billion and a 52-week range of $18.97 to $54.36.
GuruFocus has assigned a rating of 4 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 a median rating of buy for this stock with an average price target of $54.75 per share.
Brinker International Inc
The second stock that makes the cut is Brinker International Inc (EAT, Financial), a Dallas, Texas-based food service company with a portfolio of more than 1,650 casual dining restaurants in the United States and internationally.
Brinker International Inc has a forward price-earnings ratio of 11.76, which derives from Thursday’s closing price of $59.31 per share and analyst expectations for earnings of approximately $5.04 per share for the next full fiscal year.
The stock has risen by 166.32% over the past year for a market capitalization of $2.71 billion and a 52-week range of $20.71 to $78.33.
GuruFocus has assigned a rating of 3 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 a median rating of overweight with an average price target of $77.94 per share for this stock.
Sanmina Corp
The third stock that makes the cut is Sanmina Corp (SANM, Financial). Based in San Jose, California, this tech company provides original equipment manufacturers worldwide with integrated manufacturing solutions and electronic components, as well as repairing, logistics and various after-market services.
Sanmina Corp has a forward price-earnings ratio of 8.97 (versus the industry median of 19.87), which derives from Thursday’s closing price of $39.11 per share and analyst expectations for earnings of approximately $4.36 per share for the next full fiscal year.
The stock has gained 63.50% over the past year for a market capitalization of $2.55 billion and a 52-week range of $23.75 to $43.36.
GuruFocus has assigned a rating of 6 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 a median rating of overweight and have established an average price target of $50.67 per share for the stock.
Disclosure: I have no positions in any securities mentioned.
