If our aim is buying low and selling high, then the initial price we pay for our new position is very important. We believe that analyzing stocks that are near their 52 week lows is a good starting point to find cheap stocks.
Here is the list of large cap stocks that are trading within 10% of their 52 weeks lows. These stocks have P/E ratios of below 15 and market cap of higher than $20 billion. (Market data is sourced from Finviz).
1- The Travelers Companies, Inc. (TRV): Travelers Companies Inc. is a US company providing insurance services. Last June, TRV boosted its dividend payout by almost 14%, raising its dividend to 41 cents. TRV recently traded at $48.3 and has a 3.4% dividend yield. TRV lost 0.5% during the past 12 months. The stock has a market cap of $20.2 billion, P/E ratio of 9.5 and forward P/E ratio of 8. The stock has Total Debt / Equity ratio of 0.26 and Beta of 0.65. Mason Hawkins’ Southeastern Asset Management had $874 million invested in TRV at the end of June (see Mason Hawkins’ top holdings here).
2- General Mills, Inc. (GIS): General Mills provides branded consumer foods worldwide. GIS recently traded at $36.7 and has a 3.3% dividend yield. GIS gained 5.1% during the past 12 months. The stock has a market cap of $23.7 billion, P/E ratio of 13.6 and forward P/E ratio of 13. The stock has Total Debt / Equity ratio of 1.08 and Beta of 0.24. Jim Cramer also thinks that the raw material costs for this company are decreasing and sees it as an opportunity to buy the stock. Ric Dillon’s Diamond Hill Capital and Doug Silverman’s Senator Investment Group had the largest GIS holdings at the end of June.
3- MetLife, Inc. (MET): MetLife provides insurance, annuities, and employee benefit programs worldwide. MET recently traded at $31.5 and has a 2.4% dividend yield. MET lost 15.4% during the past 12 months. The stock has a market cap of $33.3 billion, P/E ratio of 13.7 and forward P/E ratio of 5.4. The stock has Total Debt / Equity ratio of 1.16 and Beta of 1.83. Fifty hedge funds own the stock, together making their interest in the company at around 7% of total outstanding shares. Larry Robbins' Glenview Capital doubled down on his interest in his MET shares last quarter. He now has 1.4 Million shares (check out Larry Robbins’ top holdings here).
4- 3M Co. (MMM): 3M Company is a diversified technology company operating worldwide. MMM recently traded at $80 and has a 2.8% dividend yield. MMM gained 1.3% during the past 12 months. The stock has a market cap of $56.8 billion, P/E ratio of 13.6 and forward P/E ratio of 11.7. The stock has Total Debt / Equity ratio of 0.32 and Beta of 0.85.
5- Prudential Financial, Inc. (PRU): Prudential Financial provides various financial products and services worldwide. PRU recently traded at $47.6 and has a 2.4% dividend yield. PRU lost 5.5% during the past 12 months. The stock has a market cap of $23.1 billion, P/E ratio of 8.3 and forward P/E ratio of 6.1. The stock has Total Debt / Equity ratio of 0.76 and Beta of 2.36.
6- Ford Motor Co. (F): Ford Motor Company is the leading vehicles and parts manufacturer operating worldwide. F recently traded at $10.4 and lost 10% during the past 12 months. The stock has a market cap of $39.5 billion, P/E ratio of 6.2 and forward P/E ratio of 5.5. The stock has Total Debt / Equity ratio of 18.56 and Beta of 2.31.
7- Carnival Corporation (CCL): Carnival Corporation is a cruise and vacation company. CCL recently traded at $30.9 and has a 3.2% dividend yield. CCL gained 0.5% during the past 12 months. The stock has a market cap of $24.5 billion, P/E ratio of 13.1 and forward P/E ratio of 10.3. The stock has Total Debt / Equity ratio of 0.41 and Beta of 1.46. Harris Associates had more than $250 Million in CCL at the end of March 2011.
8- The Bank of New York Mellon Corporation (BK): The Bank of New York Mellon provides various products and services worldwide. BK recently traded at $20.2 and has a 2.6% dividend yield. BK lost 16.7% during the past 12 months. The stock has a market cap of $24.9 billion, P/E ratio of 9.4 and forward P/E ratio of 7.8. The stock has Total Debt / Equity ratio of 0.8 and Beta of 0.81. Warren Buffett had $46 million invested in BK shares (see Warren Buffett’s stock picks here).
9- General Motors Company (GM): General Motors Company is a global automaker. GM recently traded at $22.9. The stock has a market cap of $34.3 billion, P/E ratio of 5 and forward P/E ratio of 4.8. The stock has Total Debt / Equity ratio of 0.29. There were 72 hedge funds with a total of $2.8 Billion in GM at the end of June. GM is one of the top 10 most popular stocks among hedge funds (see the entire list here).
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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