Thursday, July 10, 2014

Top 5 Cheap Stocks For 2014

LONDON -- The FTSE 100 has risen by 25% over the last year, and many top shares are beginning to look quite expensive.

I'm on the hunt for companies that still look cheap, based on their long-term earnings potential. To help me hunt down these bargains, I'm using a special version of the price-to-earnings ratio called the PE10, which is one of my favorite tools for value investing.

The PE10 compares the current share price with average earnings per share for the last 10 years. This smoothes out any short-term volatility and lets you see whether a company looks cheap compared to its long-term earnings.

Today, I'm going to take a look at the PE10 for�Tesco� (LSE: TSCO  ) (NASDAQOTH: TSCDY  ) .

Tesco keeps getting cheaper
Tesco's share price is down by more than 9% from its mid-May peak, although the FTSE 100 has only fallen by 5.9%. Tesco's underperformance is mainly due to a downbeat interim statement last week, which showed that U.K. like-for-like sales fell by 1% in the first quarter of this year.

Top 10 Construction Material Companies To Own For 2015: Capstone Turbine Corporation(CPST)

Capstone Turbine Corporation develops, manufactures, markets, and services turbine generator sets and related parts for use in stationary distributed power generation applications. Its stationary distributed power generation applications include cogeneration combined heat and power (CHP), integrated (CHP), resource recovery, and secure power, as well as combined cooling, heat, and power; and its products are used as battery charging generators for hybrid electric vehicle applications. The company primarily offers microturbine units, subassemblies, and components. It also provides various accessories, including rotary gas compressors with digital controls, heat recovery modules for CHP applications, dual mode controllers that allow automatic transition between grid connect and stand-alone modes, batteries with digital controls for stand-alone/dual-mode operations, power servers for multipacked installations, and protocol converters for Internet access, as well as frames, ex haust ducting, and installation hardware. Further, it remanufactures microturbine engines; and provides after-market parts and services, scheduled and unscheduled maintenance, and factory and on-site training services. The company?s microturbines can be fueled by various sources, including natural gas, propane, sour gas, landfill or digester gas, kerosene, diesel, and biodiesel. It primarily sells its products directly to end users, as well as through distributors in North America, Asia, Australia, Europe, the Russian Federation, and South America. Capstone Turbine Corporation was founded in 1988 and is based in Chatsworth, California.

Advisors' Opinion:
  • [By Selena Maranjian]

    Fisher reduced its stake in lots of companies, including Capstone Turbine (NASDAQ: CPST  ) and Nokia (NYSE: NOK  ) . Capstone is a smallish company, making low-emission microturbines used in power generation. Its top line has been growing by double digits over the past few years, and it's poised to profit from huge interest in shale oil, but it remains in the red. Still, it has recently announced a bunch of promising deals and some think the many folks short the stock will end up burned.

  • [By Tyler Crowe]

    What:�Shares of Capstone Turbine (NASDAQ: CPST  ) skyrocketed 13.59% as the company announced that it had signed a major supplier deal with private real estate and investment firm Related Companies. Shares of Capstone haven't been this high in over a year.

Top 5 Cheap Stocks For 2014: Popular Inc.(BPOP)

Popular, Inc., through its subsidiaries, provides a range of retail and commercial banking products and services primarily to corporate clients, small and middle size businesses, and retail clients in Puerto Rico and Mainland United States. It offers deposit products; commercial, consumer, and mortgage loans, as well as lease finance; and finance and advisory services. The company also offers trust and asset management, brokerage and investment banking, and insurance and reinsurance services. As of December 31, 2010, it owned and occupied approximately 94 branch premises and other facilities in Puerto Rico; and 119 offices, including 20 owned and 99 leased in New York, Illinois, New Jersey, California, Florida, and Texas. Popular, Inc. was founded in 1917 and is headquartered in San Juan, Puerto Rico.

Advisors' Opinion:
  • [By Maria Armental var popups = dojo.query(".socialByline .popC"); popups.forEach]

    Popular Inc.(BPOP), Puerto Rico’s largest bank, said Wednesday that regulators approved its plan to repay the $935 million rescue package it received during the financial crisis. Popular was the U.S. government’s largest remaining crisis-era bailout after auto-lender Ally Financial Inc.(ALLY), which has paid back more than the $17.2 billion bailout it received during the financial crisis as a result of going public in April.

  • [By John Udovich]

    For investors looking for exposure to the US commonwealth of Puerto Rico, banking stocks Doral Financial Corp (NYSE: DRL), First Bancorp (NYSE: FBP), OFG Bancorp (NYSE: OFG) and Popular Inc (NASDAQ: BPOP) offer the best bet as these Puerto Rico stocks trade on major US exchanges rather than the OTC. However, it should be mentioned that there has been a slowdown in Puerto Rico�� economy which has also shrunk in five of the past seven fiscal years. Then last�February, Puerto Rico�� debt was cut to speculative grade by the three largest credit-rating companies while�Governor Alejandro Garcia Padilla has proposed a series of budget cuts to help tackle the island�� mounting debt load -including the freezing public workers��salaries and the closing about 100 schools.

  • [By Jake L'Ecuyer]

    Popular (NASDAQ: BPOP) shares tumbled 5.54 percent to $27.48 after Morgan Stanley downgraded the stock from Equal-weight to Underweight.

    Pacific Coast Oil Trust (NYSE: ROYT) down, falling 7.13 percent to $16.70 after the company priced a public offering by Pacific Coast Energy Company LP and other selling unitholders of 13,500,000 trust units at a price of $17.10 per unit.

  • [By Paul Ausick]

    Among multinationals, Sterne Agee recommends three banks. The first is Puerto Rico�� Popular Inc. (NASDAQ: BPOP). The mid-cap bank�� stock closed at $28.21 on Friday in a 52-week range of $20.31 to $34.34. Based on Sterne Agee�� 2014 price target of $40.00, Popular has an upside potential of nearly 42% and a 2014 EPS estimate of $2.90. The investment firm�� forward multiple is just 9.6, below the Thomson Reuters consensus multiple of 10.3. Popular received TARP funds in 2009 and could repay the loan in the first quarter of next year, which will give the stock a shot in the arm as well.

Top 5 Cheap Stocks For 2014: UnitedHealth Group Incorporated(UNH)

UnitedHealth Group Incorporated provides healthcare services in the United States. Its Health Benefits segment offers consumer-oriented health benefit plans and services to national employers, public sector employers, mid-sized employers, small businesses, and individuals; and non-employer based insurance options for purchase by individuals. It also provides health and well-being services for individuals aged 50 and older; and for services dealing with chronic disease and other specialized issues for older individuals, as well as health plans for the beneficiaries of acute and long-term care Medicaid plans. This segment offers its services through a network of 730,000 physicians and other health care professionals, and 5,300 hospitals. Its OptumHealth segment provides health, financial, and ancillary services and products that assist consumers through personalized health management solutions; benefit administration, and clinical and network management; health-based financi al services; behavioral solutions; and specialty benefits, such as dental, vision, life, critical illness, short-term disability, and stop-loss product offerings. The company?s Ingenix segment offers database and data management services, software products, publications, consulting and actuarial services, business process outsourcing services, and pharmaceutical data consulting and research services. Its Prescription Solutions segment provides integrated pharmacy benefit management services comprising retail network pharmacy contracting and management, claims processing, mail order pharmacy services, specialty pharmacy, benefit design consultation, rebate contracting and management, drug utilization review, formulary management programs, disease therapy management, and adherence programs to employer groups, union trusts, managed care organizations, Medicare-contracted plans, Medicaid plans, and third party administrators. The company was founded in 1974 and is based in Minne tonka, Minnesota.

Advisors' Opinion:
  • [By Travis Hoium]

    UnitedHealth Group (NYSE: UNH  ) is the biggest decliner on the Dow, falling 3.4% after reporting earnings. Revenue rose 11% in the first quarter to $30.34 billion, but net income fell 14% to $1.19 billion, or $1.16 per share. Those numbers weren't wildly out of line with expectations, but when management said full-year revenue would be $122 billion, well below a previous estimate of $123 billion to $124 billion, the sell-off was on.�

  • [By Dan Caplinger]

    Looking at the largest gainers in the Dow, two companies stood out for very different reasons. On one hand, UnitedHealth (NYSE: UNH  ) rose about 1.4%. Despite having no substantial news to justify the gains, UnitedHealth has benefited from increasing clarity about the impact of Obamacare on its revenue and earnings going forward. Moreover, as the market has soared, UnitedHealth's relatively low earnings multiple of just 12 looks increasingly attractive, especially in comparison to much higher-priced consumer stocks and other more traditional defensive plays.

  • [By Ben Levisohn]

    The Jones Industrials rose 0.6% to 16,064.77, a record high, while the S&P 500 gained 0.4% to 1.804.76, also an all-time high. Big Dow winners this week include JPMorgan Chase (JPM), which rose 4.7% this week after agreeing to a $13 billion settlement with the government, Chevron (CVX), which gained 3.3% to $124.03 after it suspended a North Sea oil project, and United Health Group (UNH), which advanced 2.6% to $73.74. In the S&P 500, Biogen Idec (BIIB) rose 17% to $285.62 after the European Union protected one of its drugs from competition and Tyson Foods (TSN), finished up 11% at $31.82 after reporting surprisingly good earnings.

  • [By Ben Levisohn]

    Earlier today, the S&P 500 looked like it would close at an all-time high. Then the bears roared, and S&P 500 gave back about half its gains despite big moves in United Health (UNH), Humana (HUM), Pioneer Natural Resources (PXD),�ExxonMobil (XOM) and� Regeneron (REGN).

Top 5 Cheap Stocks For 2014: Wendy's/Arby's Group Inc.(WEN)

The Wendy's Company operates as a quick-service hamburger company in the United States. The company, through its subsidiary, Wendy's International, Inc., operates as a franchisor of the Wendy's restaurant system. As of December 26, 2011, the Wendy's system comprised approximately 6,500 franchise and company restaurants in the United States and the United States territories, as well as in 26 other countries worldwide. The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The Wendy's Company in July 2011. The Wendy's Company was founded in 1884 and is headquartered in Dublin, Ohio.

Advisors' Opinion:
  • [By Chad Fraser]

    Nearly four years later, the call has paid off nicely, with Tim’s shares rising 104.0% since that article was released. The company has also paid a dividend since it was spun off by Wendy’s (NYSE: WEN) in 2006 and has raised its payout every year since 2008. It currently yields 1.76%.

  • [By Jake L'Ecuyer]

    Wendy's (NASDAQ: WEN) was also on the rise, gaining 6.16 percent to $8.96 after the company reaffirmed its long-term outlook, announced a $275 million buyback, and lifted its fourth quarter and fiscal year guidance above street consensus.

  • [By Sean Williams]

    The last fast-food chains standing
    If Jack in the Box (NASDAQ: JACK  ) and Wendy's (NASDAQ: WEN  ) can manage to go a few weeks without sticking their foot in the their mouth, they both have a shot at picking up market share based on these PR gaffes from McDonald's and Burger King.

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