The October rally may be on a downswing but there are plenty of stocks that still lots of upside potential, even amongst the lower share prices. Check out this list of four stocks. They may look very different – there is an industrial electrical equipment company, a bank, a wireless communications provider and a life insurance company – but they have a couple things in common.
Each stock on our list has a P/E ratio under 15, a share price under $20 and an analyst recommendation to buy.
- ABB Ltd (ABB) is an industrial electrical equipment company based in Switzerland. It has a $44.03B market cap and is currently trading at 14.41 times its earnings. Over the last five years, ABB’s sales have grown 8.55%. It has a quarterly revenue growth of 27.82% and offers a 3.59% dividend yield. ABB has a 1.52 beta. It recently traded at $18.62. Analysts expect the stock to hit $26.69 within the next 12 months. ABB’s closest competitor is Siemens AG (SI). Although Siemens is larger (it has an $88.9B market cap), ABB has greater quarterly growth (27.82% vs. SI’s 2.40%) and a lower P/E ratio (14.04 compared to SI’s 14.48). Ken Fisher’s Fisher Asset Management is fan of the company.It had more then 20 million shares in the company at the end of the second quarter, a position valued at over $537 million.
- Barclays Plc (BCS) is a bank based in the UK. It has a $36.61 market cap and is trading at 9.03 times its earnings. BCS’s sales have grown 3.06% in the last five years. It has 3.74% quarterly growth. The company offers a 2.95% dividend yield and has a 2.54 beta. BCS recently traded at $11.82. Analysts predict the stock will hit $18.33 in the next year. The Royal Bank of Scotland (RBS) is one of BCS’s closest competitors. RBS has a higher market cap ($40.06B), but BCS has higher revenue ($41.13B vs. RBS’s $32.15B) and greater quarterly growth (RBS’s quarterly growth is -24.60%). Israel Englander’s Millennium Management likes BCS.
- NTT DOCOMO Inc (DCM) is a wireless communications provider in Japan. It has a $77.35B market cap, making it the largest of the companies on our list. It is trading at 11.01 times its earnings. DCM’s sales have shrunk by 2.385 over the last five years, and it lost -3.85% quarter over quarter. It does not offer a dividend yield but the company has the lowest beta on the list at 0.20. DCM recently traded at $17.64. Analysts estimate the share price will reach $24.80 in the next year. DCM’s biggest competitors are Hutchinson Telecommunications, KDDI Corporation and Softbank Mobile Corp, each of which are privately held. Jim Simons’ Renaissance Technologies is a fan of the company. The fund had a position worth almost $25 million in the company at the end of the second quarter.
- Prudential Plc (PRU) is a life insurance company in the UK. It has a $25.91B market cap. Of the companies we looked at on the list, PRU had the lowest P/E ratio at 8.66. The company’s sales have grown 3.56% over the last five years and it has 26.80% quarterly sales growth. PRU offers a 3.97% dividend yield and has a beta of 1.83. PRU recently traded at $52.12. Analysts expect the share price to reach $68.61 in the next 12 months. American International Group (AIG) is PRU’s top competitor. In comparison, AIG has a lower P/E ratio at 4.54 and higher revenue ($75.15B to PRU’s $40.61B), but AIG also has a larger market cap ($45.17B) and PRU has greater quarterly revenue growth (11.50% vs. AIG’s -8.90%). Jeffrey Altman’s Owl Creek Asset Management had more than $200 million invested in PRU at the end of the second quarter.
