5 Cash-Rich, Low P/E Stocks

NEW YORK ( TheStreet) -- Intel ( INTC) is among five stocks we have identified that have solid cash balances, low debt-to-equity ratios, low price-to-earnings ratios and high dividend yields.

Investors might want to consider these stalwarts in the current volatile market.

The selected stocks have market caps ranging from $2 billion to $250 billion with forward P/Es in the range of 7.5 to 9.2. These stocks are expected to generate dividend yields of 2% to 3.3% over the next four quarters.

These stocks could gain from 14% to 70% over the next 12 months, according to Wall Street analysts' price targets from Bloomberg.

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5. Intel is a leading chipmaker. In February, it completed its acquisition of security technology company McAfee.

Intel has a market cap exceeding $120 billion and a debt-to-equity ratio of 15.5% vs. the industry average of 34.14%, according to Bloomberg. The forward P/E is estimated at 9.18 over the next four quarters. Intel has an impressive dividend yield of 3.2% that likely will increase to 3.3% over the next year. Cash flow per share for the third quarter increased to $1.47, compared with 64 cents in the year-ago quarter and 75 cents in the prior quarter.

For the third quarter of 2011, the company delivered record revenue of $14.2 billion, up 29% from $11.1 billion a year earlier. Net income for the quarter grew 20% to $3.5 billion from $2.9 billion a year earlier. The company generated $6.3 billion of cash from operations, paid dividends of $1.1 billion and used $4 billion to repurchase 186 million shares of common stock.

For the fourth quarter, the company forecasts revenue of $14.7 billion and expects to maintain its gross margin of 65%.

Of the 53 analysts covering the stock, 58% rate it a buy. The average 12-month price target of analysts surveyed by Bloomberg is $26.89, which is 14.1% higher than the current market price.

4. Ensco ( ESV) is an offshore contract driller.

The company has a market cap exceeding $11 billion and a debt-to-equity ratio of 47.8%, compared with the industry average of 59.8%, according to Bloomberg.

Over the next four quarters, ESV is expected to trade at a forward P/E of 9.22. The company's current dividend yield is 2.8%, but it's expected to increase to 3.1% in the upcoming four quarters. Cash flow per share for the third quarter increased to 99 cents, compared with 30 cents in the previous quarter and 88 cents in the year-ago quarter.

For the third quarter, operating revenue was $915.6 million, up 113.7% from $428.3 million in the same quarter last year. Net income for the quarter was $206.1 million, increasing 56% from $132.1 million in the year-ago quarter. The company declared a regular quarterly cash dividend of 35 cents per share.

Ensco has entered into a drilling contract with Nexen ( NXY) for the Golden Eagle development in the Central North Sea for 10 wells valued at $120 million. The company also has a shared drilling contract for ENSCO 8505 with Anadarko ( APC), Apache ( APA) Deepwater and Noble Energy ( NBL).

Of the 39 analysts covering the stock, 74% rate it a buy. The average 12-month price target of analysts surveyed by Bloomberg is $62.55, about 26.4% higher than the current price.

3. Microsoft ( MSFT) has a market cap exceeding $208 billion with a debt-to-equity ratio of 20.1% vs. the industry average of 21.54%, according to Bloomberg. The forward P/E is estimated at 8.78 for the next four quarters. The current dividend yield of 2.7% is expected to increase to 3.1% in the upcoming four quarters. Cash flow per share for the first quarter of fiscal 2012 increased to $1.01, compared with 95 cents in the same quarter prior fiscal year and 70 cents in the fourth quarter of fiscal year 2011.

Microsoft reported total revenue of $17.37 billion for its fiscal 2012 first quarter ended Sep. 30, 2011, up 7.2% from $16.2 billion a year before. Net income totaled $5.7 billion, up 5.5% from $5.4 billion a year before. Cash and cash equivalents and short-term investments grew 8.71% to $57.4 billion at the end of September, vs. $52.8 billion as of the end of June.

Of the 38 analysts covering the stock, 68% rate it a buy. The average 12-month price target of analysts surveyed by Bloomberg is $31.95, about 28.6% higher than the current price.

2. Ameriprise Financial ( AMP) provides financial planning and other financial services.

The company has a market cap exceeding $9 billion and a debt-to-equity ratio of 76.8%, compared with the industry average of 81.41%, according to Bloomberg. The forward P/E is estimated at 7.51 in the upcoming four quarters. Ameriprise is trading at a dividend yield of 1.9%, which is expected to increase to 2.0% over the next four quarters. Cash flow per share for the third quarter increased to $3.33, vs. $1.66 in the year-ago quarter.

For the third quarter, Ameriprise Financial reported net income from continuing operations of $273 million, or $1.12 per diluted share. Retail client assets in the advice and wealth management unit grew 2% year over year to $293 billion. Operating net revenue per adviser increased 14% to $97,000.

Cash and cash equivalents at the end of Sep. 2011 stood at $2.66 billion, vs. $2.52 billion as of Jun. 2011. During the quarter, the company repurchased 9.9 million shares of its common stock for $447 million. The company paid a quarterly cash dividend of 23 cents per common share on Nov. 18.

Of the 15 analysts covering the stock, 80% rate the stock a buy. The average 12-month of analysts surveyed by Bloomberg is $60.17, about 40.3% higher than the current price.

1. Guess ( GES) designs and sells clothing and accessories.

Guess has a market cap of $2.5 billion and a debt-equity ratio of 1.2%, vs. the industry average of 41.06%, according to Bloomberg. The company's forward P/E is estimated 7.82 in the coming four quarters.

Dividend per share paid for the second quarter fiscal of 2012 stood at 20 cents, compared with 16 cents in the same quarter of the previous fiscal year. The estimated dividend yield is 2.7%, vs. the actual dividend yield (excluding an unusual fourth-quarter fiscal 2011 dividend payout) of 1.55%.

Guess is scheduled to release its third-quarter fiscal 2012 earnings after the market closes Wednesday. Nov. 30. For the quarter, net income is expected at $67.8 million, or 73 cents per share. Sales are seen rising 7% to $657.4 million from $613.9 million a year before.

Of the 15 analysts covering the stock, 53% rate it a buy. The average 12-month price target of analysts surveyed by Bloomberg is $45.89, about 70% higher than its current price.

>>To see these stocks in action, visit the 5 Cash-Rich, Low P/E Stocks portfolio on Stockpickr.