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The forward P/E is a valuation metric that uses the consensus future earnings estimate among analysts to derive its value. While some might write off this ratio because it is an estimate based off analyst opinions in our view it still holds value. This is due to the fact that the ratio provides a “picture” of what Wall Street and other institutional investors are expecting relative to a company's future earnings.

The 1-year fiscal EPS growth rate is a ratio that illustrates how well a company has been able to grow its earnings for shareholders relative to the economic climate. The 1-year period is a sound time frame to use when attempting to understand how well the company has navigated relative to the changing economic landscape. This is just one of many tools used to help identify companies that may be navigating these uncertain times more successfully than others.

We first ran a screen for large-cap companies that have a forward P/E under 10. From this narrowed pool we screen for companies with a strong increase in profitability (1-year fiscal EPS growth>10%). We did not screen out any sectors.

The list was listed from lowest to highest relative to the forward P/E ratio:

1. Research in Motion Ltd. (RIMM)

Sector

Technology

Industry

Communication Equipment

Market Cap

$12,563M

Beta

1.67

The company offers a variety of wireless hardware and other services but is best known for the BlackBerry. RIMM has a Forward P/E ratio is 5.04. The company’s 1-Year fiscal EPS growth rate is 47.10 %. The short interest was N/A as of 09/30/2011.

2. Vale S.A. (VALE)

Sector

Basic Materials

Industry

Industrial Metals & Minerals

Market Cap

$132,649M

Beta

1.47

The company produces iron ore and iron pellets around the world. VALE has a Forward P/E ratio is 5.24. The company’s 1-Year fiscal EPS growth rate is 232.99 %. The short interest was N/A as of 09/30/2011.

3. Hewlett-Packard Co. (HPQ)

Sector

Technology

Industry

Computer Systems

Market Cap

$51,880M

Beta

1.21

The company offers hardware, servers, and IT enterprise management services. HPQ has a Forward P/E ratio is 5.56. The company’s 1-Year fiscal EPS growth rate is 17.52 %. The short interest was 1.30% as of 09/30/2011.

4. JPMorgan Chase & Co. (JPM)

Sector

Financial Services

Industry

Banks – Global

Market Cap

$124,341M

Beta

1.43

This is a financial holding company with a variety of activities from investment banking to retailing banking. JPM has a Forward P/E ratio is 6.08. The company’s 1-Year fiscal EPS growth rate is 76.79 %. The short interest was 1.20% as of 09/30/2011.

5. Tata Motors, Ltd. (TTM)

Sector

Consumer Cyclical

Industry

Auto Manufacturers

Market Cap

$10,365M

Beta

2.20

The company operates a variety of automobile brands and things that are machine-related. TTM has a Forward P/E ratio is 6.09. The company’s 1-Year fiscal EPS growth rate is 70.65 %. The short interest was N/A as of 09/30/2011.

6. Gold Fields Ltd. (GFI)

Sector

Basic Materials

Industry

Gold

Market Cap

$11,271M

Beta

0.72

The company holds and produces gold from all over the world. The Company is involved in underground and surface gold mining and related activities, including exploration, extraction, processing and smelting. GFI has a Forward P/E ratio is 6.18. The company’s 1-Year fiscal EPS growth rate is 129.17 %. The short interest was N/A as of 09/30/2011.

7. Aflac Inc. (AFL)

Sector

Financial Services

Industry

Insurance – Life

Market Cap

$19,294M

Beta

2.13

The company is a holding company that operates in a management manner where it oversees a variety of subsidiaries. The company's principal business is supplemental health and life insurance. AFL has a Forward P/E ratio is 6.30. The company’s 1-Year fiscal EPS growth rate is 55.17 %. The short interest was N/A as of 09/30/2011.

8. Marathon Oil Corp. (MRO)

Sector

Energy

Industry

Oil & Gas Integrated

Market Cap

$17,529M

Beta

1.28

The company produces, markets, and explores for oil along with natural gas around the world. MRO has a Forward P/E ratio is 6.39. The company’s 1-Year fiscal EPS growth rate is 116.17 %. The short interest was N/A as of 09/30/2011.

9.
Freeport-McMoRan Copper & Gold. (FCX)

Sector

Basic Materials

Industry

Copper

Market Cap

$34,854M

Beta

1.86

The company explores for, produces, and processes gold, silver, and copper on multiple continents. FCX has a Forward P/E ratio is 6.40. The company’s 1-Year fiscal EPS growth rate is 55.97 %. The short interest was 1.90% as of 09/30/2011.

10. POSCO. (PKX)

Sector

Basic Materials

Industry

Steel

Market Cap

$25,444M

Beta

1.79

The company manufactures and distributes a line of steel products. PKX has a Forward P/E ratio is 6.42. The company’s 1-Year fiscal EPS growth rate is 29.29 %. The short interest was N/A as of 09/30/2011.

We hope this list helps as investors do their own due diligence on large-cap companies that look undervalued and have strong bottom line growth.

Source: 10 Large-Cap Discount Stocks That Are Substantially Increasing Profitability