8 Analyst 'Buys' Trading Under $20

|
 |  Includes: AA, ATVI, GE, MS, NWS, SPLS, WU, XRX
by: Insider Monkey

Large companies (i.e. those with market caps over $10 billion) with high expected earnings growth are not easy to come by, but they do exist. Using the stock screener at finviz.com, we started with market cap, then limited our search to those companies that have estimated 5-year EPS growth of over 10%. Next, to make sure that the stocks were priced appropriately, we limited our list to those companies with forward P/E ratios under 15 and those that carry analyst recommendations of buy or better.

General Electric Co. (NYSE:GE) is a diversified machinery company with a $202.17 billion market cap. The company is currently priced at 12.35 times its forward earnings. It pays a 3.55% dividend yield and has a 47.38% payout ratio. GE has estimated EPS growth of 13.33% per annum over the next five years. Analysts rate the company as a 1.9 on a scale in which 1.0 means "Strong Buy" and 5.0 means "Sell." It recently traded at $19.15 a share. GE is a favorite pick for Ken Fisher's Fisher Asset Management.

Staples, Inc. (NASDAQ:SPLS) is an office supplies and furniture company with a $11.16 billion market cap. The company is currently priced at 10.70 times its forward earnings. It pays a 2.51% dividend yield and has a 28.03% payout ratio. SPLS has estimated EPS growth of 11.95% per annum over the next five years. Analysts rate the company as a 2.3 on a scale in which 1.0 means "Strong Buy" and 5.0 means "Sell." It recently traded at $15.95 a share. David E. Shaw's D E Shaw likes SPLS.

Activision Blizzard, Inc. (NASDAQ:ATVI) is a multimedia and graphics software company with a $14.12 billion market cap. The company is currently priced at 12.99 times its forward earnings. It pays a 1.34% dividend yield and has a 26.22% payout ratio. ATVI has estimated EPS growth of 13.62% per annum over the next five years. Analysts rate the company as a 1.8 on a scale in which 1.0 means "Strong Buy" and 5.0 means "Sell." It recently traded at $12.34 a share. Jeffrey Tannenbaum's Fir Tree is a fan of ATVI.

Xerox Corp. (NYSE:XRX) is a business equipment company with a $12.08 billion market cap. The company is currently priced at 7.44 times its forward earnings. It pays a 1.95% dividend yield and has a 22.77% payout ratio. XRX has estimated EPS growth of 16.37% per annum over the next five years. Analysts rate the company as a 2.3 on a scale in which 1.0 means "Strong Buy" and 5.0 means "Sell." It recently traded at $8.71 a share. Larry Robbin's Glenview Capital likes XRX.

News Corp. (NASDAQ:NWS) is a diversified entertainment company with a $49.73 billion market cap. The company is currently priced at 11.74 times its forward earnings. It pays a 0.96% dividend yield and has a 21.54% payout ratio. NWSA has estimated EPS growth of 19.54% per annum over the next five years. Analysts rate the company as a 2.1 on a scale in which 1.0 means "Strong Buy" and 5.0 means "Sell." It recently traded at $19.73 a share. NWS is a favorite of Chris Hohn's Childrens Investment Fund.

Alcoa, Inc. (NYSE:AA) is an aluminum company with a $10.83 billion market cap. The company is currently priced at 10.39 times its forward earnings. It pays a 1.18% dividend yield and has a 20.93% payout ratio. AA has estimated EPS growth of 22.36% per annum over the next five years. Analysts rate the company as a 2.5 on a scale in which 1.0 means "Strong Buy" and 5.0 means "Sell." It recently traded at $10.18 a share. John Paulson's Paulson & Co likes AA.

Western Union Co. (NYSE:WU) is a business services company with a $11.86 billion market cap. The company is currently priced at 10.64 times its forward earnings. It pays a 1.67% dividend yield and has a 19.92% payout ratio. WU has estimated EPS growth of 11.85% per annum over the next five years. Analysts rate the company as a 2.0 on a scale in which 1.0 means "Strong Buy" and 5.0 means "Sell." It recently traded at $19.15 a share. WU is a top pick for Jim Simons' Renaissance Technologies is a fan of WU.

Morgan Stanley (NYSE:MS) is a national investment brokerage company with a $35.35 billion market cap. The company is currently priced at 9.62 times its forward earnings. It pays a 1.09% dividend yield and has a 11.78% payout ratio. MS has estimated EPS growth of 11.82% per annum over the next five years. Analysts rate the company as a 1.9 on a scale in which 2.4 means "Strong Buy" and 5.0 means "Sell." It recently traded at $18.28 a share. MS is a top pick for Eric Mindich's Eton Park Capital.

Disclosure: I am long MS.