Submitted by
Dividend Yield
as part of our
contributors program
.
Cheapest large capitalized stocks with highest earnings per
share growth; originally published at "
long-term-investments.blogspot.com
. A cheap stock is the basis for every future returns. Beside cheap
fundamentals and pricing ratios of a company, the expected growth
is an additional important item for investors. After the ongoing
turbulences due to the euro debt crises and the fiscal cliff in
America, there should be some bargains in relation to growth right
now.
I made a screen of America's cheapest large capitalized stocks with
highest expected growth for the upcoming fiscal year. Stocks from
the sheet have a market capitalization of more than USD 10 billion
and earnings per share are expected to grow for at least 15
percent. Despite the strong growth, they still have a P/E ratio of
less than 15 and a P/S and P/B ratio of less than two. Fourteen
companies fulfilled the mentioned criteria of which thirteen
companies have a buy or better recommendation. Eleven of the
results pay dividends.
The highest yielding stock is now China Petroleum &
Chemical. The company yields at 4.39 percent but long-term earnings
are expected to fall by around one percent for the next five years.
The best picks by mid-term growth are Mitsui and Honda.
Here are my favorites:
Ericsson (
ERIC
)
has a market capitalization of $29.78 billion. The company employs
109,214 people, generates revenue of $34.307 billion and has a net
income of $1.900 billion. The firm's earnings before interest,
taxes, depreciation and amortization (EBITDA) amounts to $4.608
billion. The EBITDA margin is 13.43 percent (the operating margin
is 7.89 percent and the net profit margin 5.54 percent).
Financial Analysis: The total debt represents 11.07 percent of
the company's assets and the total debt in relation to the equity
amounts to 21.68 percent. Due to the financial situation, a return
on equity of 8.46 percent was realized. Twelve trailing months
earnings per share reached a value of $0.62. Last fiscal year, the
company paid $0.38 in the form of dividends to shareholders. The
earnings per share are expected to grow by 29.41 for the next year
and 9.62 percent for the upcoming five years.
Market Valuation: Here are the price ratios of the company: The
P/E ratio is 14.42, the P/S ratio is 0.87 and the P/B ratio is
finally 1.38. The dividend yield amounts to 3.85 percent and the
beta ratio has a value of 1.02.
Bunge Limited (
BG
)
has a market capitalization of $10.68 billion. The company employs
35,000 people, generates revenue of $58.743 billion and has a net
income of $896 million. The firm's earnings before interest, taxes,
depreciation and amortization (EBITDA) amounts to $1.685 billion.
The EBITDA margin is 2.87 percent (the operating margin is 1.60
percent and the net profit margin 1.53 percent).
Financial Analysis: The total debt represents 17.53 percent of
the company's assets and the total debt in relation to the equity
amounts to 34.86 percent. Due to the financial situation, a return
on equity of 8.05 percent was realized. Twelve trailing months
earnings per share reached a value of $5.87. Last fiscal year, the
company paid $0.98 in the form of dividends to shareholders. The
earnings per share are expected to grow by 21.22 for the next year
and 10.0 percent for the upcoming five years.
Market Valuation: Here are the price ratios of the company: The
P/E ratio is 12.45, the P/S ratio is 0.18 and the P/B ratio is
finally 0.97. The dividend yield amounts to 1.48 percent and the
beta ratio has a value of 1.18.
FedEx Corporation (
FDX
)
has a market capitalization of $27.56 billion. The company employs
101,000 people, generates revenue of $42.680 billion and has a net
income of $2.032 billion. The firm's earnings before interest,
taxes, depreciation and amortization (EBITDA) amounts to $5.304
billion. The EBITDA margin is 12.43 percent (the operating margin
is 7.46 percent and the net profit margin 4.76 percent).
Financial Analysis: The total debt represents 5.57 percent of
the company's assets and the total debt in relation to the equity
amounts to 11.32 percent. Due to the financial situation, a return
on equity of 13.55 percent was realized. Twelve trailing months
earnings per share reached a value of $6.40. Last fiscal year, the
company paid $0.52 in the form of dividends to shareholders. The
earnings per share are expected to grow by 21.17 for the next year
and 12.41 percent for the upcoming five years.
Market Valuation: Here are the price ratios of the company: The
P/E ratio is 13.71, the P/S ratio is 0.65 and the P/B ratio is
finally 1.89. The dividend yield amounts to 0.64 percent and the
beta ratio has a value of 1.24.
Take a look at the full list of cheap large capitalized stocks
with highest expected earnings per share growth. The average P/E
ratio amounts to 12.28 while the forward P/E ratio is 8.84. P/S
ratio is 0.71 and P/B ratio 1.07. The expected earnings growth for
next year amounts to 25.33 and 15.47 percent for the upcoming five
years.
Selected Articles:
· 20 Best Stocks To Buy Or Sell On Black Friday
· A Quick Overview Of The Highest Yielding Stocks From The S&P
500
· 23 Dividend Growth Stocks With Highest Growth And Strongest Buy
Recommendation
· The Best Healthcare Growth Picks Of The Next Five Years
·
12 Cheapest Large Caps With Highest Expected Growth
As Of October 2012