Attractively priced stocks for investors amid a bear market

Stock Market Investments analysis
  • 12 shares are listed on the stock market with low prices for investors.
  • From the list, the most popular are Raytheon, UnitedHealth and Humana with a circulating ratio of 80%.

According to figures from the S&P 500, the stock market is experiencing a drop in its shares due to the high rate of inflation that affects the financial system in general.

Several publicly traded stocks have seen significant declines, but others have managed to look attractive because of their price-to-earnings ratio.

In the case of Intel Corporation, this year it was expected to generate profits of up to 15 times what was projected for 2023. However, what really happened is that the amount does not exceed more than 12 times what was projected. With this situation, the projected profit margin for 2023 fell 60%, even in the midst of the company’s commercial activities to introduce new chips in the market.

However, the media outlet Barron showed that despite the current dynamics, there are 12 stocks that may be attractive to investors thanks to their low prices.

On the list, you see names like International Business Machines (IBM  IBM), CVS Health CVS (CVS), cigarette maker Philip Morris International (PM), auto parts seller O’Reilly Automotive (ORLY), Conagra Brands (CAG), Dollar Tree (DLTR), health insurance provider Humana (HUM), and UnitedHealth Group  (UNH), agricultural chemicals company  FMC (FMC), aerospace and defense giant Raytheon RTX Technologies  (RTX), as well as companies from NRG Energy (NRG) utilities and Edison International  (EIX).

The aforementioned stocks have a profit projection for 2023 of only 13 times more than those achieved this year, well below the goal of 17 times more in income. The expectation is that growth will reach 7% by 2023.

12 stocks with shrinking valuations despite improving outlook

Name / TickerMarket capitalizationPrice/earnings ratio (2023 estimates)PE shrinkage %year to date
IBM / IBM116,681,867,26410.2-22.2%-3.8
CVS Salud / CVS134,105,464,83210.0-15.8%-1.4
Philip Morris / PM150,458,859,52014.5-16.3%0.3
O’Reilly / ORLY45,653,753,85618.5-14.0%0.3
Conagra / CAG16,519,183,36012.3-14.2%0.5
Dollar Tree / DLTR32,347,695,10413.4-34.2%0.7
FMC / FMC14,195,609,60011.5-21.9%1.4
Raytheon / RTX129,992,294,40014.5-19.2%1.8
Humanna / HUM60,555,943,93615.2-20.8%1.8
NRG Energía / NRG10,179,519,4889.6-32.3%2.4
International Edison / EIX26,356,951,04012.2-23.3%2.7
UnitedHealth Group / UNH490,458,578,94417.9-21.9%3.2

Fuente: Bloomerg

Although in recent months the aforementioned shares have fallen in value, it is estimated that by 2023 earnings will exceed 4% in a period of 6 months.

The prices of the shares in question are low and it seems to be a good opportunity. So far this year they have risen 1% in value.

From the list, the most popular are Raytheon, UnitedHealth and Humana with a circulating ratio of 80%. For a stock to be attractive to an investor, it must have at least a 58% rating in the S&P 500. According to this data, IBM and Conagra are not so promising with only 40%.