Top Five Undervalued Stocks of S&P 500 Index – AMZN, EA, NEM, HST, SPLS

  on Jan 16,2013 Posted in Finance ,Investment Ideas
 
Share |
We're on   

Price/earnings to growth ratio or PEG ratio is a valuation metric for determining the relative trade-off between the price of a security, the earnings generated per share, and the corporation’s forecasted growth.

Generally P/E ratio is higher for a corporation with a higher growth rate. Just P/E ratio would make high-growth firms appear overvalued relative to others.

PEG is a widely used indicator of a security’s potential value. PEG ratio is favored by many over the P/E ratio as it also accounts for growth. Same like the Price to earnings ratio, a lower PEG shows that the security is more undervalued. In this article we will discuss top five undervalued stocks of S&P 500.

Amazon.com, Inc (NASDAQ:AMZN) has the market capitalization of 123.16 billion while its P/E ratio was 3634.06. The Institutional ownership of world’s biggest online retail store was 68%. The price to earning to growth ratio was recorded as 124.42 and lower among all S&P 500 stocks. The Seattle, Washington based company has net profit margin of 0.28% while its gross profit margin was 23.74%. Shares of the company were moving ahead of SMA 50 with 9.98 while head of SMA 20 with 5.11%.

Electronic Arts Inc (NASDAQ:EA) has PEG ratio of 104.13 while its price to earnings ratio was 1493.86. The gamer maker has 305.14 million shares outstanding while offers EPS of $0.01. Beta factor which is a measure of risk was booked as 1.22. Previous week performance of stock was 6.10% while YTD performance was 0.62%. The company earned $15 million on $4.10 billion sales.

Newmont Mining Corp (NYSE:NEM) has market capitalization of 22.43 billion while its price to earnings ratio was 113.49. The company has earning per share of 0.40 while its 496.45 million shares were outstanding. The PEG ratio of NEM was 90.38 while its P/S ratio was 2.19. The ROE ratio was recorded as 1.56%. In the liquidity analysis, current ratio was recorded as 2.07 while quick ratio was 1.50. The company earned $212 million on revenue of $10.16 billion.

Host Hotels and Resorts Inc (NYSE:HST) offered the $0.02 EPS while its beta factor was 2.30. The company has market capitalization of 12.16 billion while its institutional ownership was 106%. Host Hotels and Resorts has PEG ratio of 77.18 while price to sale ratio was 2.33. The company offered dividend yield of 2.15%. EPS growth for the last five years was booked as -27.10%.

Staples, Inc (NASDAQ:SPLS) has market capitalization of 8.33 billion while its P/E ratio was 493.61. The company has the institutional ownership of 96% while its Beta, which is used as a measure of a stock’s volatility in relation to the market, was 0.95. The PEG ratio of the company was 65.50. The company earned $32.92 million on sales of $24.27 billion. Return on equity ratio was booked as 0.49% while return on investment was 0.37%.

Disclosure: Opinions expressed in this article are those of the authors alone who have no stake in any stocks mentioned, and did not plan to acquire any stake within the next 72 hours.

 



 

Leave a Reply