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) 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%.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV