Investors may want to consider 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.
Jack In The Box
The first stock that makes the cut is Jack In The Box (JACK, Financial), a San Diego-based operator and franchisor of Jack in the Box quick-service restaurants in the U.S. and Guam.
Jack In The Box has a forward price-earnings ratio of 14.44 (versus the industry median of 22.17), which results from Thursday’s closing price of $101.84 per share and analyst expectations for net earnings per share of approximately $7.05 for the next full fiscal year.
The stock has risen 22.84% over the past year for a market capitalization of $2.21 billion and a 52-week range of $77.69 to $124.53.
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 for this stock with an average price target of $124.33 per share.
Abercrombie & Fitch
The second stock that makes the cut is Abercrombie & Fitch Co (ANF, Financial), a New Albany, Ohio-based operator of 850 specialty stores in the U.S. and internationally for the sale of apparel, personal care products, intimates and accessories for men, women and children. The company offers its products through various third-party wholesale, franchise and e-commerce channels as well.
Abercrombie & Fitch Co has a forward price-earnings ratio of 12.01 (versus the industry median of 19.42), which derives from Thursday’s closing price of $35.03 per share and analyst expectations for earnings of approximately $2.92 per share for the next full fiscal year.
The stock has risen by 150.14% over the past year for a market capitalization of $2.09 billion and a 52-week range of $13.70 to $47.29.
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.
Wall Street sell-side analysts recommend a median rating of overweight with an average price target of $52.78 per share for this stock.
First Merchants Corp
The third stock that makes the cut is First Merchants Corp. (FRME, Financial), a Muncie, Indiana-based regional bank.
First Merchants Corp has a forward price-earnings ratio of 14.46 (versus the industry median of 10.92), which derives from Thursday’s closing price of $39.62 per share and analyst expectations for earnings of approximately $2.74 per share for the next full fiscal year.
The stock has grown by 62.29% over the past year for a market capitalization of $2.14 billion and a 52-week range of $21.50 to $50.65.
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 recommend a median rating of overweight and have established an average price target of $48.33 per share for the stock.
Disclosure: I have no positions in any securities mentioned.
