Five Undervalued Stocks of NYSE Stock Exchange; PEG ratio in Review – LCC, AIG, DAL, SLW, HCA

  on Jan 09,2013 Posted in Finance ,Investment Ideas
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Price to earnings ratio or PE Ratio is the gauge of the security price linked with the yearly net income earned by the company per share. Price to earnings ratio indicates current investor demand for a corporation stock. High value of price to earnings ratio generally shows increased demand as investors forecasts earnings growth in the future.

Price/Earnings to Growth ratio or PEG ratio show the relationship between security price, EPS and the firm’s anticipated growth rate.

PEG ratio consists of the PE ratio divided by the firm’s growth rate. A firm with a PEG ratio lower than 1 is considered undervalued while a firm with a PEG ratio over 1 is considered overvalued. However a company with a PEG ratio almost 1 is considered fairly valued. In this article we will discuss undervalued stocks of NYSE stock exchange with market volume over two million.

US Airways Group, Inc (NYSE:LCC) has the market capitalization of 2.46 billion while its P/E ratio was 4.91. The Institutional ownership of the cargo company was 107%. The price to earning to growth ratio was recorded as 0.07 and lower among all NYSE listed stocks. The company has net profit margin of 4.50% while its gross profit margin was 35.40%. Shares of the company were moving ahead of SMA 50 with 18.45% while head of SMA 20 with 13.86%.

American International Group, Inc (NYSE:AIG) has PEG ratio of 0.14 while its price to earnings ratio was 2.47. The blue chip financial giant has 1.48 billion shares outstanding while offers EPS of $14.41. Beta factor which is a measure of risk was booked as 3.45. Previous week performance of security was +0.99% while YTD performance was 0.99%. The company earned $27.05 billion on $70.62 billion of sales.

Delta Air Lines, Inc (NYSE:DAL) has market capitalization of 11.04 billion while its price to earnings ratio was 7.73. Atlanta, Georgia based company has earning per share of 1.68 while its 850.45 million shares were outstanding. The PEG ratio of DAL was 0.31 while its P/S ratio was 0.30. The ROE ratio was booked as 243.27%. In the liquidity analysis, current ratio was recorded as 0.62 while quick ratio was 0.59.

Silver Wheaton Corp (USA) (NYSE:SLW) offered the $1.55 EPS while its beta factor was 1.56. The company has market capitalization of 12.49 billion while its institutional ownership was 63%. Silver Wheaton has PEG ratio of 0.38 while price to sale ratio was 16.57.  The company offered dividend yield of 0.79%. EPS growth for the previous five years was recorded as 53.24%.

HCA Holdings Inc (NYSE:HCA) has market capitalization of 14 billion while its P/E ratio was 4.49. The company has the institutional ownership of 54% while its ATR value was 0.81. The PEG ratio of the company was 0.40. The company earned $3.23 billion on sales of $32.35 billion. Return on assets ratio was booked as 14.18% while return on investment was 18.81%. Shares of the company were moving ahead of SMA 50 with 5.83% while in front of SMA 20 with 1.67%.

Disclosure: The views and opinions expressed in this article are exclusively those of the authors who have no stake in any stocks mentioned, and hold no plan to acquire any stake within the next 5 days.



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