Investors may be interested in the following securities since their forward price-earnings multiples are trading below or around the historical S&P 500 average price-earnings multiple of 15. The projections of future earnings are based on data from Morningstar analysts.
Taiwan Semiconductor Manufacturing
The first stock that makes the cut is Taiwan Semiconductor Manufacturing Co. Ltd. (TSM, Financial), a Taiwanese producer and distributor of integrated circuits.
Taiwan Semiconductor has a forward price-earnings ratio of 14.34, which results from Thursday’s closing price of $88.42 per share and analyst expectations for net earnings per share of approximately $6.16 for the next full fiscal year.
The stock has dropped 24.32% over the past year for a market capitalization of $464.46 billion and a 52-week range of $73.74 to $145.
GuruFocus has assigned a rating of 8 out of 10 for the company's financial strength and a rating of 10 out of 10 for its profitability.
Wall Street sell-side analysts issued a median recommendation rating of buy for this stock with an average price target of $115.36 per share.
AES
The second stock that qualifies is The AES Corp. (AES, Financial), an Arlington, Virginia-based diversified electricity generation and utility operator.
AES has a forward price-earnings ratio of 14.66, which derives from Thursday’s closing price of $23 per share and analyst expectations for earnings of approximately $1.56 per share for the next full fiscal year.
The stock has fallen 2.97% over the past year for a market capitalization of $15.85 billion and a 52-week range of $18.62 to $26.52.
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 issued a median recommendation rating of buy with an average price target of $27.14 per share.
ON Semiconductor
The third stock that meets the criteria is ON Semiconductor Corp. (ON, Financial), a Phoenix-based manufacturer of semiconductors with operations worldwide.
ON Semiconductor has a forward price-earnings ratio of 13.56, which derives from Thursday’s closing price of $68.05 per share and analyst expectations for earnings of approximately $5.018 per share for the next full fiscal year.
The stock has risen by 47.66% over the past year for a market capitalization of $28.87 billion and a 52-week range of $40.85 to $71.25.
GuruFocus has assigned a rating of 7 out of 10 for the company's financial strength and a rating of 9 out of 10 for its profitability.
Wall Street sell-side analysts issued a median recommendation rating of overweight and have established an average price target of $74.20 per share.
Medical Properties Trust
The fourth stock that meets the criteria is Medical Properties Trust Inc. (MPW, Financial), a self-advising real estate investment trust based in Birmingham, Alabama that owns hospitals in nine countries on four continents.
Medical Properties Trust has a forward price-earnings ratio of 8.57, which derives from Thursday’s closing price of $16.01 per share and analyst expectations for earnings of approximately $1.86 per share for the next full fiscal year.
The stock has dropped 22.60% over the past year for a market capitalization of $9.42 billion and a 52-week range of $14.1 to $24.13.
GuruFocus has assigned a rating of 3 out of 10 for the company's financial strength and a rating of 8 out of 10 for its profitability.
Wall Street sell-side analysts issued a median recommendation rating of overweight and have established an average price target of $19.14 per share.
