Some stocks in the S & P 500 are cheaper compared to the sector they are in. CNBC Pro compiled a list of 11 stocks within the broad market index that have a lower forward price-to-earnings ratio compared to the broader segment average on Wall Street. Forward P/E allows a trader to evaluate a given company’s stock price relative to its projected future earnings. To calculate forward P/E, divide the stock’s current price by the estimated future earnings per share, which is typically a time span of the next 12 months. Forward P/E relies on projections for future earnings, which aren’t guaranteed. Still, the metric is valuable in that it allows a trader to better measure the financial health of a company. For this list, we focused on stocks that have a forward P/E rating of below 1, indicating that the stock is trading at a steep discount compared to its broader industry. AT & T ‘s forward P/E compared to the communications services sector average is a significant discount at 0.4 times. An average of price targets from analysts polled by FactSet implies 21.5% upside to AT & T’s stock price compared to current trading levels, with a mean rating of hold. T YTD mountain AT & T stock. Meanwhile, Walgreens ‘ stock also has a forward P/E significantly cheaper than the average in the consumer staples sector of the market. The company’s forward P/E sits at 0.3 times. An average of analyst price targets polled by FactSet implies 28.3% upside to Walgreens’ stock, with a mean rating of hold. General Motors has a forward P/E of 0.2 times earnings compared to the consumer discretionary sector. The mean stock rating on GM stock according to FactSet is overweight, with an average price target of $46.63 per share, or 44.1% upside. GM YTD mountain GM Stock. In utilities, NRG Energy has a forward P/E rating of 0.3 times. The company has an mean rating of hold according to FactSet, and an average anticipated upside of 16.4%.
.jpg "Returning to school twice, single mom never gave up on her dream of becoming a nurse")
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Discussion about this post