We recently calculated the relative P/E ratios of the stocks in the S&P 500. The relative P/E ratio compares the stock's estimated P/E ratio over the next 4 quarters to the average P/E ratio of the sector that the stock is in. A relative P/E ratio less than 1 means the stock's P/E is less than its sector's average. We like to use relative P/E ratios because it compares apples to apples instead of apples to oranges.

Below we highlight the 5 stocks in each sector with the lowest relative P/E ratios. These stocks have low valuations compared to other stocks in their sectors. In the list below, we like to see stocks that have low relative valuations but also have low PEG ratios (P/E to growth rate) and are up on the year.

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Bespoke Investment Group

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This article has 1 comment:

  •  
    Feb 02 06:37 PM
    Good stuff, thank you. Started me off with some great research ideas.
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