– Five Value Stocks from S&P

S&P (Businessweek) identifies FIVE stocks that are Value stocks.. this is a list of stocks that are trading at very cheap levels but have the potential to beat the market in the next 6 to 12 months

In this week’s screen, we decided to find some appealing names that trade at a substantial discount to their average price-to-earnings ratios, a key valuation metric. So we searched our database for stocks currently trading at p-e ratios that represent an 80% discount to their average p-e over the last five years. (Companies that had negative p-e’s for any of the five years were excluded.)

ATTRACTIVE PROSPECTS. Of course, sometimes stocks trade at low p-e ratios for a good reason — their future prospects are unappealing. Our next step was to make sure that the stocks on our value list are also attractive in another regard — their prospects for capital appreciation.

To do that, we filtered the list for those stocks ranked 4 STARS (buy) or 5 STARS (strong buy) by Standard & Poor’s Equity Research. S&P analysts expect stocks with those designations to outperform the overall market in the next 6 to 12 months, based on fundamental research.

Our screen uncovered five names:
1. Allianz ADS – AZ
2. Arrow Electronics – ARW
3. Walt Disney – DIS
4. EOG Resources – EOG
5. Tribune Co. – TRB

… please do you own due diligence and check out the stocks..