This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Undervalued, Unloved S&P 500 Stocks

BOSTON ( TheStreet) -- With QE2 likely to buoy the stock market through year-end, investors should seek undervalued stocks. Here are 10 of the cheapest S&P 500 stocks based on forward earnings multiples. Below, they are ordered from cheap to cheapest.

10. SLM Corp. (SLM) provides education finance.

SLM swung to a third-quarter loss of $495 million, or $1.07 a share, as revenue gained 6.1% to $1.7 billion. The operating margin narrowed from 61% to 60%. SLM's stock trades at a forward earnings multiple of 8.1, a book value multiple of 1.3 and a sales multiple of 0.9, 41%, 45% and 41% discounts to consumer finance industry averages. Of analysts covering SLM, seven advise purchasing its shares and three recommend holding them. None suggest selling. A median target of $16 implies 27% upside.

Bullish Scenario: FBR Capital Markets predicts that SLM's stock will advance 52% to $19.

1 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ALL $70.95 0.20%
F $15.77 0.06%
GME $40.71 0.97%
HIG $41.84 0.89%
SLM $10.25 0.20%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs