4 stocks on sale
Here are a few companies that may look attractive to investors right now.
By Billy Fisher
Even as the equity markets posted healthy gains in Q1, there were a number of stocks trading at valuations that would appeal to value investors. As we kick off Q2 and move into the start of the earnings season, Stock Traders Daily has ascertained the fair values of over 1,300 stocks. Here are four companies on sale right now.
Even though the health insurance provider Aetna Inc. (AET) is trading near a 52- week high, I believe that it may still have room to run. Considering its forward P/E of 9.3 and a PEG ratio of 1.0, the stock is attractive on a valuation basis.
The company has done an exceptional job driving growth against a less-than-optimal economic backdrop. For the current year, EPS are expected to grow in the high single digits and revenue is projected to jump 11.1%.
I find WellPoint (WLP) to be an equally intriguing value play with a forward P/E of 8.3 and a price to book of 0.9. The company has been the beneficiary of lower than expected commercial medical costs and healthy gains in its medical membership base. Should these trends continue throughout the year, this stock is heading higher.
The inside track
Trading at a forward P/E of 7.3 and a price to book ratio of 1.0, Apache Corporation (APA) has moved onto the value radar. The company’s stock price underperformed in Q1, but it has a couple of factors going for it moving into Q2. Apache is coming off of another year of record production and oil prices have been fighting their way higher recently.
One insider at Apache also apparently believes that his company’s stock is trading at a level that is too good to pass up. A director recently purchased approximately $750,000 worth of Apache shares. The transaction occurred at a purchase price of $74.48 per share.
Another name that I have pegged as being on sale in the commodity field is Noble Corporation (NE). Right now, the stock is trading at a forward P/E of 8.0 and a price to book ratio of 1.2. With analysts predicting the company to grow its top line by 23.4% this year and 21.9% next year, it is unlikely that Noble shares will continue to trade at a discount for long.
Stock Traders Daily's real-time trading reports can help traders implement adequate risk controls and take note of key technical indicators before piling in.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Traders might want to bite on BABA, but long-term investors have reasons to wait.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.