8 Large Companies Valued Under 10 Times Earnings
This one is currently valued at about 10 times earnings, but whether Aflac Inc. (NYSE: AFL) stays at or under that level may depend on currency exchange rates with the yen. It also has almost a $28 billion market cap. The most recent earnings, hampered by a weak yen and low interest rates, were marred by a drop of 9% in revenues. Still, U.S. revenues were up almost 2% even if U.S. pretax operating earnings were down almost 2%. Management currently sees 4% to 7% in earnings growth in 2015, which may generate income of $6.00 per share, depending partly on share buybacks. Aflac is known for its disability policies here, but it is also heavy into cancer policies and others. Aflac comes with a 2.5% dividend yield.
Shares of Aflac recently traded at $64.20, and it has a consensus analyst price target of $67.38. Aflac’s 52-week trading range is $54.99 to $65.10. It saw its most recent short interest drop off to 6.2 million shares, with 2.4 days to cover.
American Airlines Group Inc. (NASDAQ: AAL) has gone above and beyond its old days of bankruptcy fears. It is one of the cheaper legacy air carriers, despite a $29 billion market cap. Its shares are down almost 30% from the highs, and one benefit to airlines today is that jet fuel costs are boosting earnings with oil at or under $50 per barrel. Airlines also get to pass on whatever costs and fees they can make up, and flights are generally very full. American even has a dividend yield close to 1%. The air carrier trades at about 10 times trailing earnings, but it is valued at only about six times blended 2015 and 2016 earnings.
American Airlines shares were trading at $42.38, its 52-week trading range is $28.10 to $56.20 and it has a consensus price target of $55.43. The short interest for American Airlines increased only slightly to 23.3 million shares with 1.7 days to cover, compared to the previous level of 23.1 million with nearly two days to cover. That short interest peaked at just over 30 million shares earlier in 2015.
This one may seem somewhat boring, since it distributes computers, electronics and other technology goods. Avnet Inc. (NYSE: AVT) operates globally as well, though it is officially based in Phoenix. Earnings growth is roughly 5% here, and it is valued at just under 10 times trailing earnings and less than 10 times 2015 and 2016 earnings expectations — with revenue growth expected to be about 2%. Avnet has a dividend yield of about 1.6% and a market cap of about $5.6 billion.
Shares of Avnet were at $41.60, below its consensus analyst price target of $48.00, and in the middle of its 52-week trading range of $35.53 to $47.27. Avnet’s short interest was almost 3.0 million, with 3.2 days to cover.
Dana Holding Corp. (NYSE: DAN) is classified in auto parts, and its focus is in driveline, sealing and thermal-management products for vehicle manufacturers around the world. Its market cap is about $3 billion, it trades in the lower part of its 52-week range and its dividend was recently raised to a yield of about 1.3%. The company dates back to 1904 and is based in Ohio. Its valuation is about nine times current and expected earnings, and its revenues have drifted lower, with 2015 expected to be a trough at $6.3 billion or so.
Shares were at $18.55 at last look. While its 52-week trading range is $16.81 to $23.93, its shares have been stuck in a band of $17 to $23 for most of the past two years. Dana’s stock has a consensus price target of $21.60. Dana saw its most recent short interest decrease only slightly to 9.1 million shares, with 4.6 days to cover.