The current P/E ratio is a valuation metric that illustrates how much investors are willing to pay for a company's earnings. A high P/E generally illustrates that investors have high earnings expectations for a company compared with others and or competitors. A low P/E on the other hand is sometimes viewed as a value investment opportunity. The idea is that investors can buy cheap earnings for a company that they still consider to be a sound investment over the long-term even if it’s experiencing short-term headwinds.
We ran a screen for stocks that appear cheap by their P/E ratio (X<12), which also have outperformed the S&P500 (SPY) over the last week. From this narrowed pool we then screened for stocks that have illustrated sound resilience against market volatility by outperforming the S&P500 over the last 3 months.
The Price/Earnings ratio lists the companies from lowest to highest:
1. Sunoco Logistics Partners. (SXL)
Sector | Energy |
Industry | Oil & Gas Midstream |
Market Cap | $2,860M |
Beta | 0.06 |
The company operates a portfolio of pipeline, terminaling, and other assets. The company’s P/E ratio is 7.22. SXL has gained by 1.45% over the last week. Over the last 3 months the company has gained by 4.38%. The short interest was 2.30% as of 08/31/2011.
2. OneBeacon Insurance Group, Ltd. (OB)
Sector | Financial Services |
Industry | Insurance - Specialty |
Market Cap | $1,227M |
Beta | 0.91 |
The company writes casualty and property insurance with a focus on commercial and retail products. The P/E ratio is 7.30. OB has lost 0.69% over the last week. Over the last 3 months the company has gained by 2.18%. The short interest was 9.70% as of 08/31/2011.
3. Medicines. (MDCO)
Sector | Healthcare |
Industry | Drug Manufacturers - Specialty & Generic |
Market Cap | $847M |
Beta | 0.75 |
The company offers cost effective acute care hospital products all over the world. The P/E ratio is 7.32. MDCO has gained by 0.77% over the last week. Over the last 3 months the company has lost 7.98 %. The short interest was N/A as of 08/31/2011.
4. DISH Network Corp. (DISH)
Sector | Communication Services |
Industry | Pay TV |
Market Cap | $11,938M |
Beta | 1.44 |
The Company, through its DISH Network, is a provider of satellite delivered digital television to customers across the United States. The P/E ratio is 8.63. DISH has gained by 1.79% over the last week. Over the last 3 months the company has lost 5.74%. The short interest was 1.90% as of 08/31/2011.
5. Entergy Corp. (ETR)
Sector | Utilities |
Industry | Utilities - Diversified |
Market Cap | $11,539M |
Beta | 0.56 |
The company produces and distributes electric power. The P/E ratio is 9.10. ETR has lost .50% over the last week. Over the last 3 months the company has lost 3.11%. The short interest was 2.00% as of 08/31/2011.
6. Nippon Telegraph and Telephone. (NTT)
Sector | Communication Services |
Industry | Telecom Services |
Market Cap | $69,420M |
Beta | 0.37 |
The company offers fixed and mobile telecommunication related services and products within Japan. The P/E ratio is 9.54. NTT has lost 0.58% over the last week. Over the last 3 months the company has gained by 1.91%. The short interest was N/A as of 08/31/2011.
7. Intel Corp. (INTC)
Sector | Technology |
Industry | Semiconductors |
Market Cap | $116,362M |
Beta | 1.09 |
The company offers advanced integrated digital technology platforms and. The P/E ratio is 10.15. INTC has gained by 0.86 % over the last week. Over the last 3 months the company has gained by 3.04 %. The short interest was 2.90% as of 08/31/2011.
8. LifePoint Hospitals, Inc. (LPNT)
Sector | Healthcare |
Industry | Medical Care |
Market Cap | $1,826M |
Beta | 1.09 |
LifePoint is a holding company that operates subsidiaries, which lease and operate general acute care hospitals. The P/E ratio is 11.39. LPNT has gained by 0.43% over the last week. Over the last 3 months the company has lost 10.29 %. The short interest was N/A as of 08/31/2011.
9. Big Lots, Inc. (BIG)
Sector | Consumer Defensive |
Industry | Discount Stores |
Market Cap | $2,187M |
Beta | 1.06 |
The company offers broad line of closeout retailing through a variety of chains. The P/E ratio is 11.51. BIG has lost 0.60 % over the last week. Over the last 3 months the company has gained by 1.68%. The short interest was 5.30% as of 08/31/2011.
10. PPL Corp. (PPL)
Sector | Utilities |
Industry | Utilities - Diversified |
Market Cap | $16,460M |
Beta | 0.44 |
The company manufactures and sells tobacco outside the US. The P/E ratio is 11.66. PPL has lost 1.08% over the last week. Over the last 3 months the company has gained by 6.46%. The short interest was 3.00% as of 08/31/2011.
We hope this list helps investors as they do their own due diligence companies with low P/E ratios and resilience in the markets.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
