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5 Cheap Value Stocks To Invest In 2016

When looking ahead to 2016, investors must ask themselves what is the best way to gauge the market and what metrics they should be using. 

2015 was a really good year for my portfolio stock holdings. But if I look forward, I need to position myself for the fiscal year 2016. By using value ideas, A few names came into my mind.

Energy stocks or energy related companies look cheap if you bet on a rising oil price. Retailers like Kohl’s or GameStop are also underestimated if you believe that Online will not kill their business.

Attached you can find a few least expensive stock ideas. In determining the “least expensive” companies, these were merely based on the lowest forward price-to-earnings (P/E) ratio. 

Included along with each was the recent trading history, the consensus analyst price target from Thomson Reuters and additional color for what is happening or may need to be watched ahead. 

Whether these companies are ripe and ready to buy or a value trap is the question that will be answered in 2016. It is no surprise that this list would be dominated by major airlines, as the result of incredibly low oil prices, but we have only chosen one, with a couple of honorable mentions.

Here are the results...

General Motors -- Yield: 4.19%
General Motors (NYSE:GM) employs 216,000 people, generates revenue of $155,929.00 million and has a net income of $4,018.00 million. The current market capitalization stands at $53.42 billion.

General Motors’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,613.00 million. The EBITDA margin is 6.16% (the operating margin is 1.11% and the net profit margin 2.58%).

Financials: The total debt represents 26.36% of General Motors assets and the total debt in relation to the equity amounts to 132.11%. Due to the financial situation, a return on equity of 7.48% was realized by General Motors.

Twelve trailing months earnings per share reached a value of $2.73. Last fiscal year, General Motors paid $1.20 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.44, the P/S ratio is 0.34 and the P/B ratio is finally 1.55. The dividend yield amounts to 4.19%.

Stock Charts:

Long-Term Stock Price Chart of General Motors (GM)
Long-Term Stock Price Chart of General Motors (GM)
Long-Term Dividend Payment History of General Motors (GM)
Long-Term Dividend Payment History of General Motors (GM)
Long-Term Dividend Yield History of General Motors (GM)
Long-Term Dividend Yield History of General Motors (GM)


Macy's -- Yield: 4.07%

Macy's (NYSE:M) employs 166,900 people, generates revenue of $28,105.00 million and has a net income of $1,526.00 million. The current market capitalization stands at $11.12 billion.

Macy's’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,923.00 million. The EBITDA margin is 13.96% (the operating margin is 9.90% and the net profit margin 5.43%).

Financials: The total debt represents 34.21% of Macy's assets and the total debt in relation to the equity amounts to 136.50%. Due to the financial situation, a return on equity of 26.25% was realized by Macy's.

Twelve trailing months earnings per share reached a value of $3.81. Last fiscal year, Macy's paid $1.19 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.19, the P/S ratio is 0.40 and the P/B ratio is finally 2.24. The dividend yield amounts to 4.07%.

Stock Charts:

Long-Term Stock Price Chart of Macy's (M)
Long-Term Stock Price Chart of Macy's (M)
Long-Term Dividend Payment History of Macy's (M)
Long-Term Dividend Payment History of Macy's (M)
Long-Term Dividend Yield History of Macy's (M)
Long-Term Dividend Yield History of Macy's (M)


Gilead Sciences -- Yield: 1.70%

Gilead Sciences (NASDAQ:GILD) employs 7,000 people, generates revenue of $24,890.00 million and has a net income of $12,059.00 million. The current market capitalization stands at $147.23 billion.

Gilead Sciences’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16,315.00 million. The EBITDA margin is 65.55% (the operating margin is 61.33% and the net profit margin 48.45%).

Financials: The total debt represents 35.78% of Gilead Sciences assets and the total debt in relation to the equity amounts to 80.41%. Due to the financial situation, a return on equity of 90.32% was realized by Gilead Sciences.

Twelve trailing months earnings per share reached a value of $10.92. Last fiscal year, Gilead Sciences 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 9.27, the P/S ratio is 5.86 and the P/B ratio is finally 9.83. The dividend yield amounts to 1.70%.

Stock Charts:

Long-Term Stock Price Chart of Gilead Sciences (GILD)
Long-Term Stock Price Chart of Gilead Sciences (GILD)
Long-Term Dividend Payment History of Gilead Sciences (GILD)
Long-Term Dividend Payment History of Gilead Sciences (GILD)
Long-Term Dividend Yield History of Gilead Sciences (GILD)
Long-Term Dividend Yield History of Gilead Sciences (GILD)


Delta Air Lines -- Yield: 1.06%

Delta Air Lines (NYSE:DAL) employs 83,033 people, generates revenue of $40,362.00 million and has a net income of $659.00 million. The current market capitalization stands at $40.24 billion.

Delta Air Lines’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,347.00 million. The EBITDA margin is 5.81% (the operating margin is 4.80% and the net profit margin 1.63%).

Financials: The total debt represents 18.07% of Delta Air Lines assets and the total debt in relation to the equity amounts to 110.94%. Due to the financial situation, a return on equity of 6.44% was realized by Delta Air Lines.

Twelve trailing months earnings per share reached a value of $3.52. Last fiscal year, Delta Air Lines paid $0.30 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.38, the P/S ratio is 1.00 and the P/B ratio is finally 4.79. The dividend yield amounts to 1.06%.

Stock Charts:

Long-Term Stock Price Chart of Delta Air Lines (DAL)
Long-Term Stock Price Chart of Delta Air Lines (DAL)
Long-Term Dividend Payment History of Delta Air Lines (DAL)
Long-Term Dividend Payment History of Delta Air Lines (DAL)
Long-Term Dividend Yield History of Delta Air Lines (DAL)
Long-Term Dividend Yield History of Delta Air Lines (DAL)


Micron Technology -- Yield: N/A%

Micron Technology (NASDAQ:MU) employs 31,800 people, generates revenue of $16,192.00 million and has a net income of $2,452.00 million. The current market capitalization stands at $14.66 billion.

Micron Technology’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,651.00 million. The EBITDA margin is 34.90% (the operating margin is 18.22% and the net profit margin 15.14%).

Financials: The total debt represents 30.61% of Micron Technology assets and the total debt in relation to the equity amounts to 60.07%. Due to the financial situation, a return on equity of 25.13% was realized by Micron Technology.

Twelve trailing months earnings per share reached a value of $2.46. Last fiscal year, Micron Technology 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 5.75, the P/S ratio is 0.91 and the P/B ratio is finally 1.20. The dividend yield amounts to N/A%.

Stock Charts:

Long-Term Stock Price Chart of Micron Technology (MU)
Long-Term Stock Price Chart of Micron Technology (MU)
Long-Term Dividend Payment History of Micron Technology (MU)
Long-Term Dividend Payment History of Micron Technology (MU)
Long-Term Dividend Yield History of Micron Technology (MU)
Long-Term Dividend Yield History of Micron Technology (MU)


3 comments:

  1. Thanks for compiling your list LT Investments. From your list, I am most interested in Gilead. I am most weary of the airline sector. They (the airlines) have a nasty habit of ramping up capacity, only to lose pricing power. Plus may move against them.
    Wishing you a happy and healthy 2016
    -Bryan

    ReplyDelete
  2. Deep cyclical as long term investment? GM and Delta will soon be trading well below book value and cutting dividends as they always do when the cycle turns. That is when you buy them but never for the long term.

    ReplyDelete
  3. I think its a question of your personal risk profile if you like to put money into cyclic stocks.

    ReplyDelete

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