with The Walt Disney Company
Which Dow components are holding it? Or, to put it another way, which of the 30 stocks in that index are looking more like value stocks than other stocks? Well, there are 4 stocks with a price-earnings ratio of less than 10, which is an extraordinary feat of some sort considering the recent enthusiasm for stocks in general.
They are here:
Headquartered in Midland, Michigan, the historic chemicals company has a market capitalization of $43.71 billion and an enterprise value of $57.23 billion. at a time when The price-earnings ratio for the S&P 500 is 39. IsWell, it’s semi-surprising that the Dow’s P/E is completely below 7.
The company price to book the metric is 2.66, a reasonable figure given To book the price of the S&P 500 Now comes to 4.82. Earnings per share rose 167% this year, but Wall Street analysts expect earnings per share to drop more than 20% next year. Meanwhile, investors collect a 4.74% dividend yield.
Earnings per share grew by 4.90% this year and last 5 years’ EPS growth rate was 16.20%. Wall Street’s earnings expectations for next year are negative: minus 30% year-end estimates. Long-term debt by shareholder equity is very high. Intel pays a dividend yield of 2.60%.
It is the largest of the New York City banks with a market capitalization of $490 billion and an enterprise value of $117 billion. The price-earnings ratio is 10 and JPMorgan Chase trades at only 1.94 book value. The average daily volume on the New York Stock Exchange is 11 million shares of highly liquidated stock.
The big bank’s earnings per share declined 17.20% this year and the EPS growth for the past 5 years is a record relatively low 8.10%. The company pays a dividend of $4/share which equates to an annual yield of 2.39%. Bank analysts will be watching closely how interest rates could affect JPMorgan Chase for 2022.
The telecommunications giant, based in New York, shows a market capitalization of $227 billion and an enterprise value of $395 billion. The Dow Jones Industrial Average component trades with a price-earnings ratio of 10 and a book value of 2.92. They are at a nearly 10-year low.
Verizon’s earnings per share is down 7.6% this year. The EPS growth rate for the last 5 years is negative .30%. Wall Street analysts expect earnings to start rising again next year and over the next five years. Investors continue to receive a dividend of $2.56/share for a 4.72% yield.
These are the 4 Dow Jones Industrial Average components that have the lowest price-earnings ratio. Some investors employed a similar “Dog of the Dow” approach and left all others investing in this type of equities. Let’s look back a year from now and see how it worked out.
Not investment advice. For educational purposes only. Always consult a registered investment advisor before taking any decision.