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5 Cheap Stocks Guru Investors Are Buying

The P/E ratio is a strong indicator of whether a stock is a good value, and the lower the better. For this reason, many of the stocks with the lowest P/E ratios are broadly held by the investors.

However, a low P/E ratio requires further investigation, as the company could be in terminal decline, belong to an industry with endemic problems, or have other unfavorable valuations that make it unattractive as an investment.

 Below are 5 of the cheapest stocks that were bought by investment guru's within the recent quarter. Four of the results pay a dividend. It's only a first step for further research but in my view, there are some interesting stocks on the list.

These are the results:

Fifth Third Bancorp -- Yield: 2.50%

Fifth Third Bancorp (NASDAQ:FITB) employs 18,351 people, generates revenue of $4,030.00 million and has a net income of $1,483.00 million. The current market capitalization stands at $16.81 billion.

Fifth Third Bancorp’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,826.00 million. The EBITDA margin is 47.39% (the operating margin is 34.01% and the net profit margin 24.87%).

Financials: The total debt represents 12.02% of Fifth Third Bancorp assets and the total debt in relation to the equity amounts to 106.66%. Due to the financial situation, a return on equity of 10.07% was realized by Fifth Third Bancorp.

Twelve trailing months earnings per share reached a value of $1.74. Last fiscal year, Fifth Third Bancorp paid $0.51 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.95, the P/S ratio is 2.83 and the P/B ratio is finally 1.20. The dividend yield amounts to 2.50%.

Stock Charts:

Long-Term Stock Price Chart of Fifth Third Bancorp (FITB)
Long-Term Stock Price Chart of Fifth Third Bancorp (FITB)
Long-Term Dividend Payment History of Fifth Third Bancorp (FITB)
Long-Term Dividend Payment History of Fifth Third Bancorp (FITB)
Long-Term Dividend Yield History of Fifth Third Bancorp (FITB)
Long-Term Dividend Yield History of Fifth Third Bancorp (FITB)

Deere & Company -- Yield: 2.47%

Deere & Company (NYSE:DE) employs 59,600 people, generates revenue of $36,066.90 million and has a net income of $3,170.90 million. The current market capitalization stands at $31.70 billion.

Deere & Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,292.40 million. The EBITDA margin is 17.45% (the operating margin is 15.49% and the net profit margin 8.79%).

Financials: The total debt represents 60.26% of Deere & Company assets and the total debt in relation to the equity amounts to 407.81%. Due to the financial situation, a return on equity of 32.71% was realized by Deere & Company.

Twelve trailing months earnings per share reached a value of $7.17. Last fiscal year, Deere & Company paid $2.22 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.54, the P/S ratio is 0.90 and the P/B ratio is finally 3.70. The dividend yield amounts to 2.47%.

Stock Charts:

Long-Term Stock Price Chart of Deere & Company (DE)
Long-Term Stock Price Chart of Deere & Company (DE)
Long-Term Dividend Payment History of Deere & Company (DE)
Long-Term Dividend Payment History of Deere & Company (DE)
Long-Term Dividend Yield History of Deere & Company (DE)
Long-Term Dividend Yield History of Deere & Company (DE)

Discover Financial Services -- Yield: 1.94%

Discover Financial Services (NYSE:DFS) employs 14,676 people, generates revenue of $7,596.00 million and has a net income of $2,323.00 million. The current market capitalization stands at $25.36 billion.

Discover Financial Services’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,350.00 million. The EBITDA margin is 51.32% (the operating margin is 43.58% and the net profit margin 27.40%).

Financials: The total debt represents 27.26% of Discover Financial Services assets and the total debt in relation to the equity amounts to 203.49%. Due to the financial situation, a return on equity of 21.80% was realized by Discover Financial Services.

Twelve trailing months earnings per share reached a value of $4.86. Last fiscal year, Discover Financial Services paid $0.92 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.85, the P/S ratio is 3.01 and the P/B ratio is finally 2.45. The dividend yield amounts to 1.94%.

Stock Charts:

Long-Term Stock Price Chart of Discover Financial Services (DFS)
Long-Term Stock Price Chart of Discover Financial Services (DFS)
Long-Term Dividend Payment History of Discover Financial Services (DFS)
Long-Term Dividend Payment History of Discover Financial Services (DFS)
Long-Term Dividend Yield History of Discover Financial Services (DFS)
Long-Term Dividend Yield History of Discover Financial Services (DFS)

Franklin Resources -- Yield: 1.22%

Franklin Resources (NYSE:BEN) employs 9,400 people, generates revenue of $8,491.40 million and has a net income of $2,411.70 million. The current market capitalization stands at $30.24 billion.

Franklin Resources’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,324.60 million. The EBITDA margin is 39.15% (the operating margin is 37.93% and the net profit margin 28.40%).

Financials: The total debt represents 13.14% of Franklin Resources assets and the total debt in relation to the equity amounts to 18.55%. Due to the financial situation, a return on equity of 21.89% was realized by Franklin Resources.

Twelve trailing months earnings per share reached a value of $3.83. Last fiscal year, Franklin Resources paid $0.48 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.80, the P/S ratio is 3.57 and the P/B ratio is finally 2.64. The dividend yield amounts to 1.22%.

Stock Charts:

Long-Term Stock Price Chart of Franklin Resources (BEN)
Long-Term Stock Price Chart of Franklin Resources (BEN)
Long-Term Dividend Payment History of Franklin Resources (BEN)
Long-Term Dividend Payment History of Franklin Resources (BEN)
Long-Term Dividend Yield History of Franklin Resources (BEN)
Long-Term Dividend Yield History of Franklin Resources (BEN)

Bed Bath & Beyond -- Yield: %

Bed Bath & Beyond (NASDAQ:BBBY) employs 60,000 people, generates revenue of $11,881.18 million and has a net income of $957.47 million. The current market capitalization stands at $11.78 billion.

Bed Bath & Beyond’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,793.49 million. The EBITDA margin is 15.10% (the operating margin is 13.08% and the net profit margin 8.06%).

Financials: The total debt represents 22.19% of Bed Bath & Beyond assets and the total debt in relation to the equity amounts to 54.68%. Due to the financial situation, a return on equity of 28.65% was realized by Bed Bath & Beyond.

Twelve trailing months earnings per share reached a value of $5.13. Last fiscal year, Bed Bath & Beyond paid $0.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.46, the P/S ratio is 0.99 and the P/B ratio is finally 4.38. The dividend yield amounts to %.

Stock Charts:

Long-Term Stock Price Chart of Bed Bath & Beyond (BBBY)
Long-Term Stock Price Chart of Bed Bath & Beyond (BBBY)
Long-Term Dividend Payment History of Bed Bath & Beyond (BBBY)
Long-Term Dividend Payment History of Bed Bath & Beyond (BBBY)
Long-Term Dividend Yield History of Bed Bath & Beyond (BBBY)
Long-Term Dividend Yield History of Bed Bath & Beyond (BBBY)

5 Cheap Stocks Guru Investors Are Buying (click to enlarge),
Source: long-term-investments.blogspot.com

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