The market has been dropping every day, for nearly two weeks. This is causing many investors to panic sell many stocks, but for long term investors this is a huge buying opportunity. The turmoil in the markets has been (in part) due to concerns that the economy is slowing down and that has caused interest rates to drop to even lower levels. With interest rates at very low levels, stocks should provide much better returns in the long term between dividends and capital appreciation. Here are some undervalued, low price to earnings ratio stocks that have recently dropped substantially, and now trade at bargain levels:
ConocoPhillips (NYSE:COP) is one of the largest integrated oil and gas companies. This company is involved in exploration, production, processing, and transportation of various energy products and fuels. This company has extensive oil and gas reserves which will increase in value as energy prices rise. Chances are dividends will also grow with earnings and offer investors a hedge against inflation. Just a couple of weeks ago the stock was trading over $70, and are now trading at bargain levels.
Here are some key points for COP:
Current share price: $61.92
The 52 week range is $48.06 to $81.80
Earnings estimates for 2011: $8.19 per share
Earnings estimates for 2012: $8.87 per share
PE Ratio: about 9
Annual dividend: $2.64 per share which yields 3.9%
Genworth Financial, Inc. (NYSE:GNW) is a leading insurance and financial services company. Genworth has been impacted by losses with mortgage insurance and this will continue to weigh on results, however, the worst might be priced in by now with the stock trading at about 5 times 2012 earnings and for only a fraction of book value. This stock has dropped substantially in the past few days and appears oversold. Just a couple of weeks ago it was trading around $10 and has been cut nearly in half.
Here are some key points for GNW:
Current share price: $5.63
The 52 week range is $5.26 to $14.77
Earnings estimates for 2011: 90 cents per share
Earnings estimates for 2012: $1.61 per share
Annual dividend: None
Book value: $28.67 per share
MGIC Investment Corporation (NYSE:MTG) is a financial services company offering mortgage insurance. The housing crisis has had a very negative impact on the financial results at this company and the shares have dropped from about $6 to less than $2 in about 3 weeks!
Here are some key points for MTG:
Current share price: $1.89
The 52 week range is $1.87 to $11.79
Earnings estimates for 2011: a loss of $2.11 per share
Earnings estimates for 2012: a profit of 25 cents per share
Annual dividend: None
Book value: $7.52 per share
Synovus Financial Corp. (NYSE:SNV) is a regional bank with operations in Georgia, Alabama, South Carolina, Florida, and Tennessee. This stock was trading in the $2 range just a few days ago. An investor with patience could see a turn around in 18 months to two years from now. This stock could triple in the long run.
Here are some key points for SNV:
Current share price: $1.25
The 52 week range is $1.18 to $2.99
Earnings estimates for 2011: a loss of 21 cents per share
Earnings estimates for 2012: a profit of 17 cents per share
Annual dividend: 4 cents per share which yields 2.6%
Book value: $2.47 per share
JP Morgan Chase (NYSE:JPM) is one of the best managed and largest banks in the United States. JPM is one of the best managed banks in the market and at less than 8 times 2012 earnings and below book value, and could bounce back quickly.
Here are some key points for JPM:
Current share price: $34.06
The 52 week range is $33.69 to $48.36
Earnings estimates for 2011: $5.02 per share
Earnings estimates for 2012: $5.67 per share
Annual dividend: $1 per share which yields 2.7%
Book value: $44.23 per share
Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.