While it’s been a rough summer in the markets, and perhaps investors aren’t out of the woods yet, that still doesn’t mean all is lost. In fact it’s a little comical how quickly the attitude of market participants can change. Before market volatility really hit, many were complaining that they were unable to get a decent entry point relative to the markets and various stocks. More than a few names took a haircut after last week's volatility, and now seems like as good a time as any to at least review what companies still offer value.
The forward PE ratio is a financial valuation metric that illustrates what investors are willing to pay for a company’s future earnings relative to the stock price today. If earnings are expected to grow then the forward PE ratio will be lower than the current PE ratio because of higher denominator. If the forward PE ratio is below 10 then it is considered to be a “value” stock by some.
We first screened for mid-cap companies that had fallen far away from their 52-Week Highs (Percentage below its 52-Week High <-30%). From this narrowed pool we then screened for firms that had a forward PE Ratio of less than 10. We did not screen out any industries.
The list is ranked from highest to lowest relative to the loss in value from a company’s 52-Week High:
1. SunTrust Banks Inc (NYSE:STI)
Sector | Financial Services |
Industry | Banks - Regional - US |
Market Cap | $ 9,830M |
Beta | 1.43 |
Analyst Sentiment | 21/35 -List Hold/Neutral (Neutral) |
The company is a commercial bank that offers a variety of financial services to consumer and corporate customers. The firm’s forward PE ratio is 8.14. STI is 44.75% below its 52-Week High. The short interest is 1.10% as of 07/29/2011.
2. Staples, Inc. (NASDAQ:SPLS)
Sector | Consumer Cyclical |
Industry | Specialty Retail |
Market Cap | $ 9,613M |
Beta | 0.99 |
Analyst Sentiment | 11/20– List Buy/ Outperform (Bullish) |
The company sells office products and operates three business units: North American Retail, North American Delivery, and International Operations. The firm’s forward PE ratio is 8.62. SPLS is 43.24% below its 52-Week High. The short interest is 4.80% as of 07/29/2011.
3. Turkcell Iletisim Hizmetleri (NYSE:TKC)
Sector | Communication Services |
Industry | Telecom Services |
Market Cap | $ 9,566M |
Beta | 0.65 |
Analyst Sentiment | 12/18 -List Hold/Neutral (Neutral) |
The company provides mobile services within Turkey. The firm’s forward PE ratio is 8.55. TKC is 45.46% below its 52-Week High. The short interest is N/A.
4. Magna International (NASDAQ:MGA)
Sector | Consumer Cyclical |
Industry | Auto Parts |
Market Cap | $ 9,407M |
Beta | 1.28 |
Analyst Sentiment | 10/17 – List Buy/Outperform (Neutral) |
The company sells technologically sophisticated automotive systems and more. The firm’s forward PE ratio is 7.10. MGA is 37.70% below its 52-Week High. The short interest is N/A.
5. Consol Energy Inc (NYSE:CNX)
Sector | Coal |
Industry | Basic Materials |
Market Cap | $ 9,201M |
Beta | 1.49 |
Analyst Sentiment | 18/25 -List Buy/Outperform (Bullish) |
The company produces energy and offers services directed at electric power industry within the U.S. The firm’s forward PE ratio is 9.30. CNX is 27.95% below its 52-Week High. The short interest is 2.00% as of 07/29/2011.
6. M&T Bank Corp (NYSE:MTB)
Sector | Financial Services |
Industry | Banks - Regional - US |
Market Cap | $ 9,174M |
Beta | 0.75 |
Analyst Sentiment | 8/23 -List Buy/Outperform (Bullish) |
The company offers corporations, institutions, and individuals with retail & commercial banking services. The firm’s Forward PE ratio is 9.65. MTB is 23.12% below its 52-Week High. The short interest is 2.80% as of 07/29/2011.
7. SanDisk Corp (NASDAQ:SNDK)
Sector | Technology |
Industry | Semiconductor Memory |
Market Cap | $ 9,112M |
Beta | 1.61 |
Analyst Sentiment | 20/25 -List Buy/Outperform (Bullish) |
The company is an industry leader in the flash memory card space. The firm’s Forward PE ratio is 7.94. SNDK is 28.94% below its 52-Week High. The short interest is 3.50% as of 07/29/2011.
8. SK Telecom Co., Ltd. (NYSE:SKM)
Sector | Communication Services |
Industry | Telecom Services |
Market Cap | $ 9,108M |
Beta | 0.90 |
Analyst Sentiment | 17/27 – List Buy / Outperform (Bullish) |
The company provides internet services, provision of wireless data, and commercial development in the telecom space. The firm’s forward PE ratio is 5.90. SKM is 29.92% below its 52-Week High. The short interest is N/A.
9. Avon Products Inc (NYSE:AVP)
Sector | Consumer Defensive |
Industry | Household & Personal Products |
Market Cap | $ 9,097M |
Beta | 1.67 |
Analyst Sentiment | 11/18 – List Hold / Neutral (Neutral) |
The company manufactures and sells cosmetic & beauty products. The firm’s forward PE ratio is 9.25. AVP is 41.66% below its 52-Week High. The short interest is 1.90% as of 07/29/2011.
10. Gap, Inc. (NYSE:GPS)
Sector | Consumer Cyclical |
Industry | Apparel Stores |
Market Cap | $ 9,077M |
Beta | 1.29 |
Analyst Sentiment | 24/33 – List Hold / Neutral (Neutral) |
The company operates the following retail apparel brands: Gap, Old Navy, Banana Republic, and Piperlime brands. The firm’s forward PE ratio is 9.49. GPS is 30.51% below its 52-Week High. The short interest is 7.10% as of 07/29/2011.
We hope this list helps investors as they do their own due diligence on mid-cap companies that are trading at attractive forward PE ratio numbers.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
