Thursday, July 19, 2012

3 Cheap Large Cap Financial Stocks That Analysts Love


When industry analysts rate a company's stock as a 'Buy' or as a 'Strong Buy', it shows that there are a list of things that the company is doing right. It also means there is reasonable confidence that the stock will increase in value. Today we focus on large cap financial stocks with mid to high analyst ratings, but whose price-multiples suggest that they're still undervalued and trading at a discount. We came up with a short but intriguing list.The PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate. Thus using just the P/E ratio would make high-growth companies appear overvalued relative to others.It is assumed that by dividing the
... Read the rest at SeekingAlpha.com

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