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10 Stocks Selling at the Deepest Discounts

BOSTON ( TheStreet) -- U.S. stocks slid last month, with the S&P 500 falling 4.7% as investors loaded up on fixed-income securities. Here are 10 stocks struggling despite exceptionally cheap price-to-earnings ratios. When stocks rebound, these stocks may fare best. The companies are ordered by forward earnings multiple, from cheap to cheapest.

10. Humana (HUM - Get Report) offers health and supplemental benefit plans. Second-quarter profit increased 21% to $340 million, or $2 a share, as revenue grew 9.5% to $8.7 billion. The operating margin rose from 5.9% to 8.2%. Humana has $8.9 billion of cash and $1.7 billion of debt, equal to a quick ratio of 1.7 and a debt-to-equity ratio of 0.3. During the past three years, Humana has grown revenue 11% annually, on average, and boosted profit 24% a year.

Its stock trades at a trailing earnings multiple of 7.1, a forward earnings multiple of 8.6, a book value multiple of 1.3, a sales multiple of 0.3 and a cash flow multiple of 3.6 -- 51%, 31%, 48%, 60% and 59% discounts to peer averages. Of analysts covering Humana, 9, or 43%, advise purchasing its shares, 11 recommend holding and one suggests selling them. A median price target of $55.73 suggests a return of 16%.

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GS $160.38 0.20%
HUM $175.75 0.03%
SLM $6.46 -1.80%
ACE $0.00 0.00%
AAPL $93.10 -0.56%


Chart of I:DJI
DOW 17,700.50 +49.24 0.28%
S&P 500 2,053.78 +2.66 0.13%
NASDAQ 4,725.5250 -0.1140 -0.00%

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