Value stocks, low p/e stocks
When the growth stock mania has ended and investors begin avoiding the large cap tech and social media names like Nvidia, Tesla and Palantir, some of that money may find its way back into value stocks. From a strict contrarian standpoint, it’s probably a good idea to begin thinking now about the eventual likelihood of that scenario.
Low price-earnings ratios are the first, best indicators for selection of value. Other significant factors include the ability to pay a dividend and the lack of debt. A lower than book value price is nice but not always present, especially given the basic overvaluation of stock markets in general.
With those basics in mind, here are four NYSE-listed companies that fit the most basic of value stock criteria. No guarantees of profitability are made or implied, of course. Once growth stocks have run out of steam — and that might be sooner rather than later — these types of names may come back into investment fashion.
4 Low P/E Stocks Paying 3+% Dividends And Holding Low Or No Debt.
Alliance Bernstein (NYSE: AB).
Alliance Bernstein Holding weekly price chart, 12 23 24.
This weekly price chart shows how the price has changed over the last 4 years. It peaked at about $44 in the fall of 2021, dropped to just under $24 by late 2023 and has now somewhat recovered to $36.
The big investment house has global headquarters in Nashville, Tennessee. Market cap is $4.34 billion. The stock trades with a price-earnings ratio of 10. The debt-to-equity ratio is 0.00. Alliance Bernstein pays an 8.39% dividend. It’s relatively lightly traded (for an NYSE listed equity) with an average daily volume of 329,000 shares.
Centerra Gold (NYSE: CGAU).
Centerra Gold weekly price chart, 12 23 24.
The price peaked at $9.25 in early 2022 and now trades at $5.67.
This gold and copper miner is based in Toronto and has extensive operations in British Columbia, Kansas and Turkey. It also owns and operates a Canadian molybdenum mine. The stock’s price-earnings ratio is 12 and it trades at 69% of book value. The debt-to-equity ratio is .01. Centerra pays a 3.58% dividend.
Future Fuel (NYSE: FF).
FutureFuel weekly price chart, 12 23 24.
This weekly price chart shows that the stock trades in a range between just above $5.50 and to just under $3.60.
Future Fuel is a 47-year old specialty chemicals firm with a focus on the development of sustainable energies. Products include, according to the company website, “polymer modifiers, dyes & pigments, coatings and adhesives.” The p/e is 6. The debt-to-equity ratio is 0.00. Future Fuel pays a dividend of 4.35%.
Sandridge Energy (NYSE: SD)
SandRidge Energy weekly price chart, 12 23 24.
The stock’s price peaked in the spring of 2022 at $22 and now goes for $10.50.
Sandridge is an oil and gas exploration and production company with headquarters in Oklahoma City and operations in that state as well as in Texas and Kansas. The price earnings ratio is 8.27 and it trades at a 13% discount from its book value. The most recently paid dividend amounted to 4.19%. The debt-to-equity ratio is 0.00.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
More analysis and commentary at johnnavin.substack.com.
