Quality large caps by fwd P/E
Query: Quality US large-cap stocks with return on equity above 15 percent and debt-to-equity ratio below 1.0, ranked by forward P/E · data as of 2026-10-14
Quality screen: 183 US large caps (>$10B) pass ROE >15% and debt-to-equity <1.0; table shows the 45 cheapest by forward P/E (TPL 4.9x, CMCSA 5.8x, AES 6.3x, PDD 6.7x...) with sector, industry, market cap, ROE, D/E, forward/trailing P/E, net margin, revenue growth, 1M/6M returns and technical state, plus qualitative comments on each name.
As of October 14, 2026, 183 US large caps (>$10B) cleared both quality bars — ROE above 15% and debt-to-equity below 1.0. Ranking that universe by forward P/E surfaces a distinctly value-tilted cohort: cheap, self-funding businesses rather than the leveraged growth complex that took the brunt of the recent rate-driven de-rating. Energy (Texas Pacific Land, Devon, EOG, APA), property-casualty and reinsurance (Allstate, RenaissanceRe, Arch, Travelers, Progressive) and homebuilders appear in force, alongside a handful of mispriced software and platform names such as Adobe, Intuit and PayPal. Note the concentration of asset-light insurers, whose high ROE is partly a function of reserve float rather than industrial leverage, and the cluster of homebuilders and building materials tied to the same rate cycle. Signals such as markets' recent sector rotation toward cash-generative health care and staples reinforce this quality-at-a-price profile.
Quality at a Discount: ROE > 15% & D/E < 1.0, Cheapest by Forward P/E
| Symbol | Company | Sector | Industry | Market Cap ($B) | Return on Equity | Debt / Equity | Forward P/E | P/E (TTM) | Net Margin | Revenue Growth (YoY) | 1M Return | 6M Return | Technical State | Comments |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TPL | Texas Pacific Land Corporation | Energy | Oil & Gas E&P | 24.4564 | 30.94% | 0.012 | 4.85 | 45.11 | 60.31% | 13.09% | -4.59% | -14.77% | Downward channel (59%), Downtrend | Land and royalty model means near-zero capital intensity and no drilling cost exposure — ROE is structural, not cyclical. The catch: revenue is levered to Permian activity levels, so the multiple compresses when producer capex plans wobble. |
| CMCSA | Comcast Corporation | Communication Services | Telecom Services | 74.6988 | 22.28% | 0.939 | 5.81 | 6.75 | 16.17% | -0.02% | -12.46% | -23.43% | Downtrend | Cheapest broadband-plus-media asset in the market, discounted for subscriber losses and theme-park/studio lumpiness. Broadband ARPU defense and the eventual separation of cable from media are the re-rating levers; leverage keeps the equity sensitive to any further churn. |
| AES | The AES Corporation | Utilities | Utilities - Diversified | 10.673 | 20.59% | 0.264 | 6.29 | 5.6 | 7.44% | -0.37% | 1.08% | 6.43% | Uptrend | Regulated utility with an unusually high ROE for the sector, aided by tax-credit monetization and international mix. Story hinges on data-center power demand and the pace of renewables build, with the balance sheet the swing factor. |
| PDD | PDD Holdings Inc. | Consumer Discretionary | Internet Retail | 115.9356 | 23.67% | 0.013 | 6.65 | 8.52 | 22.66% | 14.45% | 4.32% | -20.12% | Downtrend | Extremely profitable Chinese e-commerce platform trading at a deep discount to US peers. The de-rating is a governance/geopolitical discount rather than an earnings problem, so headline growth and Temu investment trajectory drive sentiment more than the financials. |
| SYF | Synchrony Financial | Financials | Credit Services | 23.3356 | 21.56% | 0.997 | 6.82 | 7.36 | — | — | -5.71% | -4.83% | Sideways channel (10%) | Consumer-credit lender with a strong returns profile but the most cycle-sensitive book on this list — reserve builds and net charge-offs will dominate the narrative if the consumer weakens. Regulatory capital and late-fee rules are the structural overhang. |
| AA | Alcoa Corporation | Materials | Aluminum | 10.5775 | 22.44% | 0.554 | 6.91 | 8.33 | 9.02% | 7.87% | -13.84% | -42.85% | Downtrend, Break-below | Aluminum pricing and energy costs make earnings wildly cyclical; ROE here reflects a cyclical peak rather than durable franchise economics. Tariff and China supply policy are the real swing variables. |
| UHS | Universal Health Services, Inc. | Health Care | Medical Care Facilities | 10.9557 | 20.11% | 0.822 | 7.71 | 7.59 | 8.70% | 9.71% | 5.11% | 3.45% | Uptrend | Behavioral-health hospital operator with a strong cash-generation record, though payer mix and labor costs remain the persistent margin debate. Low capital intensity relative to other providers supports the returns profile. |
| FSLR | First Solar, Inc. | Information Technology | Solar | 19.2457 | 15.47% | 0.059 | 7.76 | 18.29 | 29.28% | 24.09% | -11.50% | -8.26% | Downtrend | Thin D/E for a capital-intensive manufacturer — a function of pre-funded capacity and accumulated credits. The valuation gap to peers reflects policy risk on domestic manufacturing credits and the solar complex's rate sensitivity rather than balance-sheet quality. |
| RNR | RenaissanceRe Holdings Ltd. | Financials | Insurance - Reinsurance | 14.1073 | 31.42% | 0.215 | 8.28 | 5.89 | 28.16% | 9.86% | 3.29% | 9.54% | Uptrend | Reinsurance is enjoying a hard-market pricing cycle; the high ROE is supported by disciplined underwriting plus the investment portfolio's yield. Catastrophe loss experience is the primary volatility driver, and capital returns depend on pricing holding. |
| LULU | lululemon athletica inc. | Consumer Discretionary | Apparel Retail | 10.8981 | 32.73% | 0.373 | 8.36 | 7.62 | 14.22% | 4.86% | -4.35% | -42.18% | Downtrend | Premium athletic apparel brand trading at a rare discount, reflecting North America slowdown and product-mix missteps. Brand equity and full-price selling are the recovery levers; the risk is that the U.S. consumer stays selective. |
| ALL | Allstate Corporation (The) | Financials | Insurance - Property & Casualty | 59.7175 | 32.48% | 0.243 | 8.57 | 4.73 | 15.17% | 5.58% | -8.18% | 8.79% | — | Auto-insurance profitability has normalized after several years of aggressive rate increases, and this is the purest earnings-power beneficiary of that inflection. Reserve development and cat exposure are the tail risks. |
| ADBE | Adobe Inc. | Information Technology | Software - Application | 93.6727 | 61.90% | 0.615 | 8.75 | 13.78 | 30.00% | 10.53% | -6.63% | -1.63% | — | Outstanding ROE and margins for a software franchise, with a very low forward multiple by its historical standards. The debate is AI monetization pace versus seat-based cannibalization — a sentiment battleground rather than a fundamentals one. |
| FUTU | Futu Holdings Limited | Financials | Capital Markets | 15.3443 | 28.34% | 0.116 | 8.96 | 12.11 | 49.62% | 67.78% | 0.67% | -32.49% | Downtrend | Brokerage tied to Hong Kong and offshore Chinese investor activity; earnings are highly sensitive to trading volumes and cross-border capital flows. Regulatory approval of new markets is the key upside catalyst. |
| DVN | Devon Energy Corporation | Energy | Oil & Gas E&P | 54.912 | 17.12% | 0.628 | 9.18 | 10.85 | 15.37% | 7.83% | -2.75% | 11.87% | Uptrend | Shale producer with a disciplined capital-return framework and lower-cost Delaware inventory. Free-cash-flow durability depends on oil prices holding; the dividend-plus-buyback structure keeps the equity a yield play as much as a growth one. |
| TCOM | Trip.com Group Limited | Consumer Discretionary | Travel Services | 24.8293 | 19.55% | 0.215 | 9.19 | 5.79 | 53.50% | 22.23% | -0.94% | -28.16% | Downtrend | Dominant Chinese online travel platform with very high margins; the discount largely reflects geopolitical and ADR-delisting risk. Outbound travel recovery and international expansion are the growth drivers to watch. |
| SF | Stifel Financial Corporation | Financials | Capital Markets | 10.2379 | 16.13% | 0.507 | 9.25 | 12.13 | 10.77% | 6.65% | -11.74% | -16.41% | — | Regional brokerage with a wealth-management tilt — advisory fee revenue provides some insulation against trading-volume swings. Rate cuts would pressure the cash-sweep revenue that has flattered returns recently. |
| TOL | Toll Brothers, Inc. | Consumer Discretionary | Residential Construction | 12.0169 | 15.89% | 0.016 | 9.27 | 9.91 | 12.28% | 1.11% | -2.64% | -6.59% | Downtrend | Luxury-leaning homebuilder with an unusually clean balance sheet for the industry. The setup is a rate-driven affordability channel: lower mortgage rates unlock both order growth and multiple expansion, but incentives are currently compressing gross margins. |
| AMP | Ameriprise Financial, Inc. | Financials | Asset Management | 43.7974 | 57.36% | 0.044 | 9.62 | 11.99 | 18.84% | 5.49% | -11.36% | 11.49% | Uptrend | Asset-light advisory and wealth franchise with a very low balance-sheet footprint, which is why ROE looks exceptional. Sensitive to equity-market levels and net flows; capital return is a core part of the thesis. |
| HIG | The Hartford Insurance Group, I | Financials | Insurance - Diversified | 35.7443 | 20.31% | 0.24 | 9.64 | 9.11 | 13.52% | 6.91% | -2.99% | -4.02% | Downtrend | Commercial and personal lines insurer generating consistent underwriting profit. Rate adequacy in commercial lines is peaking, so the question is how much margin normalization is already in the price. |
| TROW | T. Rowe Price Group, Inc. | Financials | Asset Management | 21.2505 | 19.37% | 0.041 | 9.68 | 10 | 28.53% | 3.12% | -4.42% | 6.20% | Uptrend, Break-below | Active manager facing structural fee pressure and outflows, offset by a rock-solid balance sheet. The multiple reflects secular concerns about active equity; a genuine risk-on rotation would be the catalyst that changes that. |
| PYPL | PayPal Holdings, Inc. | Financials | Credit Services | 47.9914 | 26.13% | 0.576 | 9.68 | 10.6 | 15.78% | 4.32% | 4.26% | 13.83% | Uptrend | Two-sided payments network with high incremental margins on transaction growth. The open debate is competitive displacement at checkout and whether branded checkout volumes can keep pace with unbranded growth — a margin-mix question more than a solvency one. |
| PHM | PulteGroup, Inc. | Consumer Discretionary | Residential Construction | 20.8297 | 17.05% | 0.013 | 9.72 | 11.17 | 12.82% | -3.54% | -8.47% | -9.10% | Downtrend, Break-below | Entry-level homebuilder benefiting from affordability-driven demand inflections; net-zero debt is the standout balance-sheet feature here. Gross-margin compression from incentives is the key near-term watch item. |
| DECK | Deckers Outdoor Corporation | Consumer Discretionary | Footwear & Accessories | 11.2786 | 40.97% | 0.15 | 9.9 | 11.78 | 18.71% | 9.76% | 6.85% | -23.93% | Downtrend | Owns the hottest performance brand in footwear, but the multiple has reset hard on growth deceleration. Direct-to-consumer mix and international expansion are the structural positives; the risk is demand normalization in Hoka. |
| ACGL | Arch Capital Group Ltd. | Financials | Insurance - Diversified | 33.304 | 18.19% | 0.0064 | 9.99 | 7.64 | 22.07% | 14.27% | 0.58% | 0.13% | — | Specialty insurer with a differentiated mortgage and casualty book. Reserve strength and the current rate environment support investment income, making this one of the more durable ROE profiles in the insurance cohort. |
| CART | Maplebear Inc. | Consumer Discretionary | Internet Retail | 11.7243 | 18.66% | 0.015 | 10.09 | 26.99 | 11.95% | 10.78% | 5.53% | 19.64% | Uptrend | Grocery-delivery platform with an unusual combination of growth and improving profitability. The model is advertising- and membership-levered; the risk is the durability of order frequency as delivery competition consolidates. |
| GL | Globe Life Inc. | Financials | Insurance - Life | 12.8654 | 19.08% | 0.457 | 10.13 | 11.12 | 19.37% | 3.74% | -3.20% | 12.73% | Uptrend | Life insurer with a low-beta, steady-earnings profile. The discount reflects distribution-conduct concerns and slower premium growth rather than balance-sheet weakness. |
| NEM | Newmont Corporation | Materials | Gold | 117.5499 | 20.52% | 0.162 | 10.54 | 14.07 | 31.62% | 21.34% | -10.17% | -0.87% | Uptrend | Gold miner whose returns are entirely a function of realized metal prices and cost inflation in a high-grade portfolio. Underperformed the gold price because of operational setbacks; cost control is the re-rating path. |
| APO | Apollo Global Management, Inc. | Financials | Asset Management | 66.9617 | 17.50% | 0.713 | 10.56 | 40.35 | 10.90% | 22.73% | -10.72% | -5.14% | — | Alternative asset manager with rapidly growing fee-based earnings from insurance and credit. Reported ROE understates the economic returns because of GAAP treatment of carried interest; the spread business makes it rate-sensitive. |
| EOG | EOG Resources, Inc. | Energy | Oil & Gas E&P | 80.8772 | 16.11% | 0.299 | 10.61 | 12 | 22.00% | -4.50% | 0.29% | 18.24% | Upward channel (92%), Uptrend | Premium independent with low-cost inventory and a strong balance sheet — a rarity in shale. Free cash flow leadership supports an outsized capital-return program, though the equity tracks crude directionally. |
| FOXA | Fox Corporation | Communication Services | Entertainment | 26.595 | 20.90% | 0.681 | 10.7 | 16.2 | 14.07% | 16.60% | -7.93% | -1.85% | Uptrend | Broadcast and streaming mix split off from the legacy media assets; the cheap multiple reflects cord-cutting risk in the affiliate-fee stream. Sports rights and political ad cycles drive the ad-revenue cadence. |
| RJF | Raymond James Financial, Inc. | Financials | Asset Management | 30.2077 | 16.99% | 0.044 | 11.09 | 13.7 | 13.42% | 6.63% | -6.50% | 1.66% | — | Advisor-network brokerage with a genuinely conservative capital structure, which makes the returns profile more durable than pure-trading peers. Recruiting and the path of short rates matter most for the revenue line. |
| APA | APA Corporation | Energy | Oil & Gas E&P | 16.5962 | 24.10% | 0.533 | 11.09 | 9.99 | — | — | -0.08% | 31.21% | Uptrend | Levered offshore-focused producer whose cash flows hinge on oil prices and Egypt/Suriname execution. Higher balance-sheet risk than the peer group but a meaningful free-cash-flow yield at current crude. |
| DHI | D.R. Horton, Inc. | Consumer Discretionary | Residential Construction | 37.3793 | 15.33% | 0.003 | 11.36 | 12.74 | 10.57% | -6.93% | -4.68% | -5.75% | Downtrend | Volume homebuilder with scale economics and one of the lowest leverage profiles in the industry. Its speculation-and-incentives model makes gross margin choppy, and the stock moves on rate expectations more than on reported orders. |
| INTU | Intuit Inc. | Information Technology | Software - Application | 82.9607 | 18.76% | 0.371 | 11.38 | 18.93 | 20.55% | 15.63% | -5.28% | -19.62% | Downtrend | Mission-critical accounting and tax software with strong pricing power; the cheap forward multiple reflects fears that AI commoditizes compliance workflows. The durable small-business subscription base is the offset. |
| CF | CF Industries Holdings, Inc. | Materials | Agricultural Inputs | 18.0789 | 31.28% | 0.633 | 11.46 | 8.86 | 25.38% | 19.34% | -11.86% | -0.20% | Downtrend | Nitrogen producer whose earnings are pegged to gas-price spreads rather than headline crop prices. North American gas-cost advantage versus European competitors is the structural edge; global nitrogen supply additions are the risk. |
| WDC | Western Digital Corporation | Information Technology | Computer Hardware | 136.2911 | 19.51% | 0.178 | 11.47 | 13.52 | 19.84% | 50.70% | -11.62% | -0.19% | Sideways channel (0%) | Storage-cycle beneficiary with a lean balance sheet after restructuring; earnings are levered to hyperscale storage demand and HDD/SSD pricing. That cycle exposure is why the multiple stays subdued despite strong ROE. |
| NTES | NetEase, Inc. | Communication Services | Electronic Gaming & Multimedia | 79.2281 | 21.71% | 0.018 | 11.67 | 15.76 | 30.90% | 11.65% | 3.55% | 7.85% | Sideways channel (40%) | Chinese gaming and PC-network operator with an exceptionally low debt load and strong cash flow. Domestic game approvals and Asian market share versus the global studios are the fundamental swing factors. |
| CHKP | Check Point Software Technologi | Information Technology | Software - Infrastructure | 13.6897 | 36.67% | 0.012 | 11.86 | 13.75 | 38.78% | 6.25% | -2.69% | -0.45% | — | Security software with a fortress balance sheet and very high returns on capital. The discount reflects slow top-line growth versus next-gen cloud competitors, so platform consolidation is the catalyst to watch. |
| CRH | CRH PLC | Materials | Building Materials | 52.6905 | 16.43% | 0.996 | 11.97 | 13.99 | 10.12% | 5.27% | -9.68% | -31.33% | Downtrend | Infrastructure-materials supplier riding U.S. highway-funding and reshoring construction. Higher leverage than the rest of the list reflects a capital-intensive footprint; volume leverage to infrastructure spend is the core driver. |
| AFG | American Financial Group, Inc. | Financials | Insurance - Property & Casualty | 12.0759 | 18.00% | 0.435 | 12 | 12.73 | 10.30% | -1.80% | 1.28% | 12.89% | Uptrend | Specialty P&C insurer with a significant annuity book, giving the earnings stream a spread-based, rate-sensitive tilt. Consistent underwriting discipline supports a durable returns profile. |
| SCHW | Charles Schwab Corporation (The | Financials | Capital Markets | 167.3997 | 17.98% | 0.419 | 12.4 | 17.63 | 37.01% | 22.01% | -10.20% | -2.83% | — | Broker with a large custody business whose earnings swing with client cash sorting and rate policy. Post-integration scale is now the asset; the key question is how much of the rate-driven revenue base normalizes. |
| TRV | The Travelers Companies, Inc. | Financials | Insurance - Property & Casualty | 78.8038 | 19.66% | 0.29 | 12.51 | 10.16 | 12.88% | 5.18% | -0.04% | 27.18% | Uptrend | P&C insurer benefiting from an improved commercial pricing environment and better investment yields. The relatively clean balance sheet makes it a defensive way to own insurance margin expansion. |
| INCY | Incyte Corporation | Health Care | Biotechnology | 22.615 | 22.88% | 0.0098 | 12.52 | 14.19 | 25.03% | 21.22% | -8.35% | 14.90% | — | Profitable biotech with a marketed dermatology and oncology portfolio — unusually solid for the sector. Pipeline readouts and patent-cliff timing are the drivers, so the equity trades on clinical news rather than on cash flow. |
| GEHC | GE HealthCare Technologies Inc. | Health Care | Medical Devices | 30.927 | 20.19% | 0.988 | 12.66 | 15.78 | 10.44% | 4.84% | 6.87% | -6.80% | — | Medical-imaging franchise with an installed-base economics model and a leverage profile that is elevated for a healthcare asset. Imaging volumes and tariff exposure on imported equipment are the swing factors. |
| YUMC | Yum China Holdings, Inc. | Consumer Discretionary | Restaurants | 14.5752 | 18.48% | 0.427 | 12.86 | 15.82 | 8.51% | 4.37% | 3.62% | -11.39% | Downtrend | China restaurant operator spun off from its U.S. parent, now largely self-funded with a net-cash position. Same-store-sales recovery in China and unit expansion into lower-tier cities drive the story; the cheap multiple prices in persistent consumption caution. |
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