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Much has been made about the low valuations of certain large-cap stocks. We recently highlighted eight cheap "blue chips", including Cisco Systems (NASDAQ:CSCO), Hewlett-Packard (NYSE:HPQ), Microsoft (NASDAQ:MSFT), and (NYSE:NOK).Nokia

We now turn our attention to mid-cap stocks, i.e., companies with market values between $2 billion and $10 billion. Once again, we screened for companies that seem to be too cheap to ignore. In doing so, we focused on forward earnings rather than reported EPS. Each of the following five companies sells for less than eight times the consensus earnings estimate for the next fiscal year.

Computer Sciences (NYSE:CSC) ($39 per share; MV $6.0 billion; EV $6.7 billion), based in Falls Church, VA, provides professional services focused on IT and business process outsourcing, with governments and corporations comprising the key client groups. Total employees decreased 3% from $94K in the fiscal year ended April 2, 2010 to $91K in FY11, while revenue remained roughly flat at $16.0 billion during the same period. Analysts expect CSC to earn $4.68 per share in FY12 (8x P/E), followed by $5.11 (8x) and $5.51 (7x) in the following years. The indicated dividend of $0.80 per share, an increase of 14% from a year ago, implies a yield of 2.1%.

Lexmark (NYSE:LXK) ($28 per share; MV $2.2 billion; EV $1.6 billion), based in Lexington, KY, operates in the office imaging and enterprise content management markets, primarily providing laser and inkjet printers, multifunction devices, dot matrix printers and associated supplies. The market for distributed printing and electronic content management increased 6% from $85 billion in 2009 to $90 billion in 2010, while revenue increased 8% during the period. The Street expects Lexmark to earn $4.28 per share in 2011 (6x P/E), with $4.19 (7x) and $4.03 (7x) in each of the next two years, respectively. The company has $620 million of net cash (28% of recent market value) and $1.2 billion of tangible book value. Adjusting for net cash would bring the estimated P/E ratio down to 3x for 2011, 3x for 2012 and 3x for 2013.

Oshkosh (NYSE:OSK) ($26 per share; MV $2.4 billion; EV $3.1 billion), based in Oshkosh, WI, makes specialty vehicles and vehicle bodies, with defense sales accounting for nearly three-quarters of total revenue. As the company has been selling products to the U.S. Department of Defense for 80+ years, it enjoys long-standing relationships with key decision-makers in the government. Engineering and R&D expenditures surged 50% from $72.7 million in the fiscal year ended September 30, 2009 to $109 million in FY10, while revenue surged 87% in the period. Analysts expect Oshkosh to earn $3.35 per share in FY11 (8x P/E), followed by $3.55 (7x) and $3.92 (7x) in subsequent years.

Tesoro (NYSE:TSO) ($21 per share; MV $3.0 billion; EV $4.2 billion), based in San Antonio, TX, owns seven petroleum refineries in the western U.S., with a combined crude oil capacity of roughly 665K barrels per day. Throughput, measured in barrels per day, declined 13% from 549K in 2009 to 480K in 2010, while revenue rose 22% in the period. The sell side expects Tesoro to earn $3.09 per share in 2011 (7x P/E), with $2.90 (7x) and $2.55 (8x) in the following years.

Whirlpool (NYSE:WHR) ($76 per share; MV $5.8 billion; EV $7.3 billion), based in Benton Harbor, MI, is the world’s leading maker of major home appliances, such as refrigerators and freezers and laundry machines. Unit sales increased 9% from 49.7 million in 2009 to 54.1 million in 2010, while total revenue increased 7% to $18.4 billion in the same period. The Street expects Whirlpool to earn $11.90 per share in 2011 (6x P/E), with $9.77 (8x) and $11.08 (7x) in the following years. The annual dividend of $2.00 per share, an increase of 16% from a year ago, implies a yield of 2.6%.

Source: 5 Mid-Caps at Less Than Eight Times Next Year's Earnings