3 Stocks With Low Forward Price-Earnings Ratios




  • In Business
  • 2020-06-30 17:29:47Z
  • By External Contributor
3 Stocks With Low Forward Price-Earnings Ratios
3 Stocks With Low Forward Price-Earnings Ratios  

To increase their chances of discovering value opportunities, investors should screen the market for stocks with a favorable forward price-earnings ratio.

The following stocks have a forward price-earnings ratio that stands lower than the S&P 500 Index's historical average of 15. The S&P 500 is one of the most used benchmarks for the U.S. market. Estimates of future earnings are produced based on data from Morningstar analysts.

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Oracle

The first company to consider is Oracle Corp. (NYSE:ORCL), a global computer technology giant based in the U.S.

Oracle has a forward price-earnings ratio of 13.75 (versus the industry median of 28.99), which results from Monday's share price of $54.76 and analyst expectations for earnings per share of about $3.98 for the next full fiscal year.

The stock has fallen 5.6% over the past year for a market capitalization of $168.04 billion and a 52-week range of $39.71 to $60.5.

GuruFocus has assigned a moderate rating of 4 out of 10 for the company's financial strength and a remarkably high rating of 9 out of 10 for its profitability.

Wall Street sell-side analysts recommend a hold rating for Oracle.

Gilead Sciences

The second company to consider is Gilead Sciences Inc. (NASDAQ:GILD), a Foster City, California-based pharmaceutical drug manufacturer.

Gilead Sciences has a forward price-earnings ratio of 12.1 (versus the industry median of 19.48), which is the result of Monday's closing share price of $74.56 and analyst expectations for earnings of about $6.16 for the next full fiscal year.

The stock has risen 10% over the past year for a market capitalization of $93.53 billion and a 52-week range of $60.89 to $85.97.

GuruFocus assigned a positive rating of 5 out of 10 to the company's financial strength and a high rating of 8 out of 10 to its profitability.

Wall Street sell-side analysts issued a hold recommendation rating for Gilead Sciences.

GlaxoSmithKline

The third company to consider is GlaxoSmithKline PLC (NYSE:GSK), a British pharmaceutical giant.

GlaxoSmithKline has a forward price-earnings ratio of 13.85 (versus the industry median of 19.48), which is the result of Monday's closing share price of $40.75 and analysts' earnings expectations of about $2.94 for the next full fiscal year.

The stock is almost flat after a year of trading for a market capitalization of $102.23 billion and a 52-week range of $31.43 to $48.25.

GuruFocus has assigned a moderate rating of 4 out of 10 for the company's financial strength and a high rating of 8 out of 10 for its profitability.

Wall Street sell-side analysts recommend a hold rating for GlaxoSmithKline.

Disclosure: I have no positions in any securities mentioned in this article.

Read more here:

  • A Trio of Stocks With Low Price-Sales Ratios

  • 3 Stocks Growing Capex Fast

  • A Trio of Small Caps Growing Earnings Fast



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This article first appeared on GuruFocus.

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