A Trio of Stocks With Low Forward Price-Earnings Ratios
To enhance the likelihood to unearth value opportunities, investors may find it helpful to screen the market for stocks with a compelling forward price-earnings ratio.
According to Morningstar analyst estimates, the following three stocks have a forward price-earnings ratio that stands below the S&P 500 index's historical average of 15.
AllianceBernstein Holding LP
The first company to consider is AllianceBernstein Holding LP (NYSE:AB), a New York-based asset management company.
AllianceBernstein has a forward price-earnings ratio of 11.53 (versus the industry median of 12.77), which results from Friday's share price of $26.30 and analyst expectations for EPS of about $2.28 for the next full fiscal year.
The stock price has decreased 6.1% in the past year for a market cap of $2.57 billion and a 52-week range of $13.24 to $36.06.
GuruFocus has assigned a good rating of 7 out of 10 to the company's financial strength and a moderate rating of 4 out of 10 to its profitability.
The stock has an overweight recommendation rating on Wall Street.
Knoll Inc
The second company to consider is Knoll Inc (NYSE:KNL), an East Greenville, Pennsylvania-based manufacturer and seller of equipment and supplies for the workplace and residential markets in North America and internationally.
Knoll Inc has a forward price-earnings ratio of 12.66 (versus the industry median of 20.81), which is the result of a Friday's closing share price of $13.79 and analyst expectations for EPS of about $1.09 for the next full fiscal year.
The stock price has declined by 35% in the past year for a market capitalization of $698.43 million and a 52-week range of $7.74 to $28.30.
GuruFocus has assigned a rating of 4 out of 10 to the company's financial strength and a good rating of 7 out of 10 to its profitability.
As of June, two Wall Street sell-side analysts recommended a strong buy rating for the stock and another two recommended a buy rating.
TC Pipelines LP
The third company to consider is TC Pipelines LP (NYSE:TCP), a Houston, Texas-based oil and gas midstream operator in North America.
TC Pipelines has a forward price-earnings ratio of 9.73 (versus the industry median of 13.14), which is the result of Friday's closing share price of $35.09 and analyst expectations of EPS of about $3.61 for the next full fiscal year.
The stock price has declined by 6% in the past year for a market cap of $2.57 billion and a 52-week range of $18 to $44.65.
GuruFocus has assigned a low rating of 3 out of 10 to the company's financial strength but a very good rating of 7 out of 10 to its profitability.
The stock has a buy recommendation rating on Wall Street.
Disclosure: I have no positions in any securities mentioned in this article.
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This article first appeared on GuruFocus.
