In addition, the recent trading losses at JPMorgan (JPM) have scared off investors from all banking stocks.
Yet even with these setbacks, Citigroup should remain an earnings powerhouse. Analysts think the bank can earn nearly $5 a share in 2013, meaning the forward P/E multiple is just 5.5. The fact that shares trade for little more than half of tangible book value also underscores the value proposition.
AMDChipmaker AMD (AMD - Get Report), which has also seen its shares slide about 25% in the second quarter, is a real head-scratcher. In recent quarters, results have looked a bit better, most notably in the area of gross margins, as the company is in the midst of a broad upgrade cycle for its key chips. AMD will always toil in Intel's (INTC) shadow, which means it will have to offer lower prices to win customers, but this strategy appears to be working. Case in point: AMD's recently launched Trinity microprocessor will be used in a range of sleek new laptops -- known as ultra-books -- that are being prepared for sale by a half-dozen PC manufacturers. >>5 Rocket Stocks for the Snapback Rally The fresh slate of chips is expected to power a solid upturn in profits. AMD is expected to see EPS rise 50% this year to 75 cents and another 20% in 2013 to around 90 cents a share. The falling stock price, meanwhile, has set up a deep value play. Shares now trade for just seven times projected 2013 profits. If AMD can deliver the quarterly results in the second and third quarters that analysts anticipate, then this may be a quick rebounder. Standard Motor Products Selling replacement parts for aging cars and trucks is an unsexy business. Sales grow only slowly and profit growth is also more tortoise-like than hare-like. For Standard Motor Products (SMP - Get Report), even that modest goal was missed in the first quarter. Quarterly sales fell 4% to $212 million as key customers held off on new orders to work down bloated inventories. Profits fell more than 20% to around just23 cents a share.