7 Cheap Financial Stocks With High Gross Margins And Solid Cash Flow

by: Edgar Ambartsoumian

With the eurozone's looming fiasco and media's constant pessimistic reporting on financials, some stocks get slaughtered just for being under the financials umbrella. One cannot overlook these undervalued gems such as Ameriprise Financial Inc. (NYSE:AMP) and Morgan Stanley (NYSE:MS) that are trading near single digit P/Es and P/FCFs.

Company Market Cap P/E Price/FCF Gross Margin PEG
Ameriprise Financial Inc. (AMP) 10.29 B 9.55 8.12 73.15% 0.76
Cninsure Inc. (CISG) 323.03 M 5.41 4.77 50.63% 0.26
Cash America Intl. (NYSE:CSH) 1.46 B 12.03 4.10 60.38% 0.78
Morgan Stanely (MS) 28.06 B 8.57 1.26 69.13% 0.73
Janus Capital Group.Inc (NYSE:JNS) 1.18 B 6.74 5.02 85.79% 0.88
Lazard Ltd.(NYSE:LAZ) 3.11 B 11.74 9.80 95.33% 0.86
Nelnet Inc. (NYSE:NNI) 1.08 B 5.0 3.19 59.24% 0.38

I have compiled a list of aformentioned stocks that either have upside potential based on oversold conditions and solid fundamentals or great valuation in terms of high gross margins, earnings as well as growth potential. Remember to buy incrementally in averaging down your positions and treading carefully on stocks with higher spread and lower liquidity.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in AMP, MS over the next 72 hours.

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