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4 Stocks With Low Forward Price-Earnings Ratios

These stocks may suit the value investor

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Oct 13, 2021
Summary
  • FB Financial Corp, MFA Financial Inc, Bonanza Creek Energy Inc and New Mountain Finance Corp have forward price-earnings ratios that are below the S&P 500's historical average
  • Wall Street is positive about these stocks
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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.

FB Financial Corp

The first stock that makes the cut is FB Financial Corp (

FBK, Financial), a Nashville, Tennessee-based regional bank operating 81 full-service bank branches and nine limited-service branches across Tennessee, North Alabama, Southern Kentucky and North Georgia. The bank also operates 23 mortgage offices in the southeastern region of the United States.

FB Financial Corp has a forward price-earnings ratio of 14.34, which results from Tuesday’s closing price of $44.71 per share and analyst expectations for net earnings per share of approximately $3.12 for the next full fiscal year.

The stock has risen 61.33% over the past year for a market capitalization of $2.11 billion and a 52-week range of $26.30 to $49.62.

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GuruFocus has assigned a rating of 3 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 overweight for this stock with an average price target of $44.88 per share.

MFA Financial Inc

The second stock that qualifies is MFA Financial Inc (

MFA, Financial), a New York-based real estate investment trust (REIT) with activities in the United States.

MFA Financial Inc has a forward price-earnings ratio of 11.01, which derives from Tuesday’s closing price of $4.65 per share and analyst expectations for earnings of approximately $0.42 per share for the next full fiscal year.

The stock has risen by 57.4% over the past year for a market capitalization of $2.04 billion and a 52-week range of $2.66 to $4.90.

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GuruFocus has assigned a rating of 2 out of 10 for the company's financial strength and a rating of 3 out of 10 for its profitability.

Wall Street sell-side analysts recommend a median rating of overweight with an average price target of $4.80 per share for this stock.

Bonanza Creek Energy Inc

The third stock that makes the cut is Bonanza Creek Energy Inc (

BCEI, Financial), a Denver, Colorado-based oil and natural gas explorer and producer holding 118.2 million barrels of oil equivalent in proved reserves.

Bonanza Creek Energy has a forward price-earnings ratio of 6.06, which derives from Tuesday’s closing price of $51.04 per share and analyst expectations for earnings of approximately $8.42 per share for the next full fiscal year.

The stock has grown by 144.47% over the past year for a market capitalization of $1.55 billion and a 52-week range of $15.88 to $52.25.

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GuruFocus has assigned a rating of 8 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 overweight and have established an average price target of $63.17 per share for the stock.

New Mountain Finance Corp

The fourth stock that matches the criteria is New Mountain Finance Corp (

NMFC, Financial), a business development company focusing on investments in middle-market companies and various debt securities.

New Mountain Finance Corp has a forward price-earnings ratio of 11.23, which derives from Tuesday’s closing price of $13.54 per share and analyst expectations for earnings of approximately $1.21 per share for the next full fiscal year.

The stock has grown by 39.1% over the past year for a market capitalization of $1.32 billion and a 52-week range of $8.94 to $13.75.

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GuruFocus has assigned a rating of 2 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 overweight and have established an average price target of $13.80 per share for the stock.

Disclosure: I have no positions in any securities mentioned.

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I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
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