Wednesday, April 25, 2012

5 Financial Stocks Trading At A Discount And With Strong Profitability

Interested in financial stocks? Looking for undervalued stocks? Do you prefer companies with strong profits? We ran a screen you might find helpful.
The forward P/E is a price multiple valuation metric, which is similar to the current P/E ratio, except that it uses the forecasted earnings instead. While this number might not be as accurate because it uses "forecasted" numbers, it does offer the benefit of illustrating analysts' expectations of a firm. If the market believes that earnings will grow moving forward, then the forward P/E should be lower than the current P/E. Financial Leverage, also known as the Equity Multiplier, illustrates how a firm is financing its assets. The lower the number the more a firm is ... Read the rest at SeekingAlpha.com

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