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A cheap stock is the basis for every future capital returns. Besides cheap fundamentals and pricing ratios of a company, the expected growth is an additional important item for investors. The higher the growth the higher the valuation could be. After the ongoing sell-off at the capital markets, there should be some bargains in relation to growth right now.

I screened for cheap high yield large capitalized stocks. These stocks have a market capitalization of more than $10 billion and an expected earnings growth of at least 15 percent for the next year but have a price to earnings ratio of less than 15 and a price to sales ratios of less than 2. Only four stocks (each from technology and basic material sector) fulfilled these criteria. Here are the results:

1. Transocean (NYSE:RIG) is acting within the oil and gas drilling and exploration industry. The company is based in Switzerland and has a market capitalization of $17.4 billion, generates revenues in an amount of $9.0 billion and has a net loss of $143.0 million. It follows P/E ratio is not calculable and forward price to earnings ratio amounts to 9.4, Price/Sales 2.0 and Price/Book ratio 0.8. Dividend Yield: 5.8 percent. The expected earnings per share growth for the next year amounts to 59.0 and 16.5 percent for the upcoming five years.

2. Telecom Italia (NYSE:TI) is acting within the diversified communication services industry. The company is based in Italy and has a market capitalization of $23.7 billion, generates revenues in an amount of $40.5 billion and has a net loss of $120.9 million. It follows P/E ratio is not calculable and forward price to earnings ratio amounts to 6.8, Price/Sales 0.6 and Price/Book ratio 0.7. Dividend Yield: 6.9 percent. The expected earnings per share growth for the next year amounts to 96.7 and -0.9 percent for the upcoming five years.

3. Verizon Communications (NYSE:VZ) is acting within the domestic telecom services industry. The company is based in the United States and has a market capitalization of $105.9 billion, generates revenues in an amount of $108.8 billion and a net income of $7.1 billion. It follows P/E ratio amounts to 15.0 and forward price to earnings ratio amounts to 14.5, Price/Sales 1.0 and Price/Book ratio 2.7. Dividend Yield: 5.3 percent. The expected earnings per share growth for the next year amounts to 16.7 and 8.9 percent for the upcoming five years.

4. YPF S.A. (NYSE:YPF) is acting within the oil and gas refining and marketing industry. The company is based in Argentina and has a market capitalization of $14.6 billion, generates revenues in an amount of $11.8 billion and a net income of $1.3 billion. It follows P/E ratio amounts to 11.3 and forward price to earnings ratio amounts to 9.5, Price/Sales 1.2 and Price/Book ratio 3.3. Dividend Yield: 8.6 percent. The expected earnings per share growth for the next year amounts to 16.3 and 15.3 percent for the upcoming five years.



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

Source: 4 Cheap High-Yield Large Caps