5 Cheapest Industrial Goods Stocks

|
 |  Includes: CRH, GFA, KSW, VE, XIN
by: Dividend Screen

It is really easy to explain how to make money with stocks. You need to buy stocks and sell them for higher prices. The basis is that you must know when stocks are cheap and when they are expensive in order to find the optimal exit. Let’s scout for some bargains within the industrial goods sector. Stocks from the sector have a total market capitalization of $46.5 trillion. The average P/E ratio is 13.9 and the dividend yield amounts to 2.6 percent.

I screened the whole sector by stocks with cheapest price ratios. As criteria, I selected a low forward price-to-earnings ratio with a value of fewer than 15, a price-to-book ratio of less than 1 as well as a price-to-sales ratio of less than 1. Finally, the dividend yield must be above 4 percent. The whole sector has 355 stocks of which 5 fulfilled these criteria. Here are the results:

1. CRH (NYSE:CRH) is acting within the cement industry and home based in Ireland. The company has a market capitalization of $13.1 billion, generates revenue in an amount of $23.7 billion and a net income of $655.4 million. Its P/E ratio is 19.5 and forward price-to-earnings ratio 13.0, Price/Sales 0.6 and Price/Book ratio 0.9. Dividend Yield: 5.0 percent.

2. Gafisa (NYSE:GFA) is acting within the residential construction industry and home based in Brazil. The company has a market capitalization of $1.3 billion, generates revenue in an amount of $2.1 billion and a net income of $165.3 million. Its P/E ratio is 7.8 and forward price-to-earnings ratio 3.3, Price/Sales 0.6 and Price/Book ratio 0.7. Dividend Yield: 4.8 percent.

3. KSW (NASDAQ:KSW) is acting within the general contractors industry and home based within the USA. The company has a market capitalization of $19.9 million, generates revenue in an amount of $72.4 million and a net income of $1.9 million. Its P/E ratio is 10.4 and forward price-to-earnings ratio 9.2, Price/Sales 0.3 and Price/Book ratio 0.9. Dividend Yield: 4.8 percent.

4. Veolia Environnement (NYSE:VE) is acting within the waste management industry and home based in France. The company has a market capitalization of $7.8 billion, generates revenue in an amount of $45.3 billion and a net loss of $304.4 million. Its P/E ratio is not calculable and forward price-to-earnings ratio 10.2, Price/Sales 0.2 and Price/Book ratio 0.8. Dividend Yield: 11.5 percent.

5. Xinyuan Real Estate (NYSE:XIN) is acting within the residential construction industry and home based in China. The company has a market capitalization of $136.9 million, generates revenue in an amount of $519.2million and a net income of $72.5 million. Its P/E ratio is 1.9 and forward price-to-earnings ratio 1.1, Price/Sales 0.3 and Price/Book ratio 0.2. Dividend Yield: 5.6 percent.

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