Cheap large
capitalized stocks with high growth originally published at “long-term-investments.blogspot.com. Cheap stocks, bargains or undervalued companies can promise you good
returns if you believe that they receive a better valuation within the next
months or years. It’s very difficult to discover those stocks because of the
hundreds of thousands technical and fundamental measures.
I often used my
static ratios like earnings multiples or book ratios to identify cheaply
valuated stocks. Today I like to change my recent criteria about cheapest
dividend paying large caps a little bit. I tighten the restriction
Price-To-Sales to a value of less than one and look at forward P/E’s. In the past,
I’ve looked at current earnings multiples.
These are the criteria for my cheapest dividend paying
large cap screen:
- Market Capitalization
over USD 10 billion
- Expected Earnings
per share growth over 10 percent for the next five years
- Forward P/E
ratio under 15
- P/S under 1 and
P/B ratio under 2
- Positive
Dividends
The number of my
results rose. Eighteen stocks fulfilled these criteria of which one pays a high
yield of more than five percent. Nearly all, fourteen in total, got a buy or
better rating by brokerage firms.