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Value investors look for stocks that appear undervalued relative to their intrinsic value, which is based on company metrics such as earnings and revenues.

With this idea in mind, we ran a screen on the 200 largest US-traded companies by market cap (which we refer to as “mega-cap”) for those that appear undervalued to earnings growth, with PEG below 1, and undervalued to free cash flows, with P/FCF below 15.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.


(Click to enlarge)

Do you think these stocks should be trading higher? Use this list as a starting-off point for your own analysis.

List sorted by market cap.

1. Apple Inc. (NASDAQ:AAPL): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap of $352.24B. PEG at 0.72. P/FCF at 12.11. The stock has gained 42.28% over the last year.

2. Microsoft Corporation (NASDAQ:MSFT): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap of $216.91B. PEG at 0.85. P/FCF at 11.15. The stock has gained 5.72% over the last year.

3. BHP Billiton plc (NYSE:BBL): Operates as a diversified natural resources company. Market cap of $164.44B. PEG at 0.76. P/FCF at 13.23. The stock has gained 4.41% over the last year.

4. General Electric Co. (NYSE:GE): Operates as a technology, service, and finance company worldwide. Market cap of $159.11B. PEG at 0.85. P/FCF at 10.10. The stock has lost 4.76% over the last year.

5. Wells Fargo & Company (NYSE:WFC): Provides retail, commercial, and corporate banking services primarily in the United States. Market cap of $127.24B. PEG at 0.75. P/FCF at 4.56. The stock has lost 7.98% over the last year.

6. Rio Tinto plc (NYSE:RIO): Engages in finding, mining, and processing mineral resources. Market cap of $106.94B. PEG at 0.77. P/FCF at 10.97. It's been a rough couple of days for the stock, losing 5.1% over the last week.

7. Siemens AG (SI): Operates in the industry, energy, and healthcare sectors worldwide. Market cap of $81.54B. PEG at 0.54. P/FCF at 12.49. It's been a rough couple of days for the stock, losing 9.46% over the last week.

8. CNOOC Ltd. (NYSE:CEO): Engages in the exploration, development, production, and sale of crude oil, natural gas, and other petroleum products. Market cap of $77.45B. PEG at 0.95. P/FCF at 5.15. It's been a rough couple of days for the stock, losing 9.5% over the last week.

9. Nippon Telegraph & Telephone Corp. (NYSE:NTT): Provides telecommunications services to residential and business customers in Japan. Market cap of $68.52B. PEG at 0.76. P/FCF at 7.98. The stock has gained 5.82% over the last year.

10. Unitedhealth Group, Inc. (NYSE:UNH): Provides healthcare services in the United States. Market cap of $49.78B. PEG at 0.89. P/FCF at 9.71. The stock has gained 34.99% over the last year.

11. Hewlett-Packard Company (NYSE:HPQ): Offers various products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Market cap of $46.83B. PEG at 0.67. P/FCF at 5.70. It's been a rough couple of days for the stock, losing 6.73% over the last week.

12. American International Group, Inc. (NYSE:AIG): The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. Market cap of $44.75B. PEG at 0.31. P/FCF at 10.14. The stock has lost 23.79% over the last year.

13. Ford Motor Co. (NYSE:F): Develops, manufactures, distributes, and services vehicles and parts worldwide. Market cap of $38.42B. PEG at 0.77. P/FCF at 5.37. This is a risky stock that is significantly more volatile than the overall market (beta = 2.39). The stock has lost 15.68% over the last year.

14. DIRECTV (NASDAQ:DTV): Provides digital television entertainment in the United States and Latin America. Market cap of $30.65B. PEG at 0.73. P/FCF at 12.58. The stock has gained 2.77% over the last year.

15. Mitsui & Co. Ltd. (OTCPK:MITSY): Operates as a general trading company. Market cap of $29.63B. PEG at 0.15. P/FCF at 12.49. The stock has gained 17.89% over the last year.

16. Gilead Sciences Inc. (NASDAQ:GILD): Engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide. Market cap of $29.30B. PEG at 0.72. P/FCF at 9.29. The stock has gained 10.44% over the last year.

17. Barclays PLC (NYSE:BCS): Provides various financial products and services in Europe, the United States, Africa, and Asia. Market cap of $27.98B. PEG at 0.39. P/FCF at 0.67. This is a risky stock that is significantly more volatile than the overall market (beta = 2.58). It's been a rough couple of days for the stock, losing 13.4% over the last week.

18. Dell Inc. (NASDAQ:DELL): Provides integrated technology solutions in the information technology (NYSE:IT) industry worldwide. Market cap of $25.89B. PEG at 0.90. P/FCF at 5.52. The stock has gained 15.27% over the last year.

*Data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.