Undervalued large caps
Query: Undervalued US large-cap stocks with P/E below 15 and positive earnings growth · data as of 2026-10-02
Screened US-listed large caps (>$10B) with trailing P/E below 15x and positive earnings growth, ranked by a blended Value+Growth Score (cheapness + earnings/revenue growth quality). Delivered a 45-row table with market cap, P/E (TTM), forward P/E, EPS/revenue growth, acceleration, net margin, ROE, debt/equity, FCF yield, 1M/6M/1Y returns and distance from the 150D SMA, plus per-name qualitative comments and a Value & Quality context narrative. Value clusters in global cyclicals (gold/commodity producers, EM ADRs), financials/insurers and telecom/utilities, with a handful of genuinely cheap quality tech and pharma names; commentary flags where cheap multiples reflect cyclical price leverage or liability/regulatory overhang rather than sustainable earning power.
45 undervalued large caps (>$10B) trading below 15x trailing earnings with positive, mostly accelerating earnings growth, ranked by a blended cheapness-plus-growth-quality score as of October 2, 2026.
Undervalued Large Caps with Improving Earnings (as of October 2, 2026)
| Symbol | Company | Sector | Industry | Market Cap | P/E (TTM) | Forward P/E | EPS Growth (YoY) | Revenue Growth (YoY) | Rev. Growth Accel. | Net Margin | ROE | Debt/Equity | FCF Yield | 1M Return | 6M Return | 1Y Return | vs. 150D SMA | Value+Growth Score | Comments |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| KEP | Korea Electric Power Corporatio | Utilities | Utilities - Regulated Electric | 1.669e+10 | 2.57 | 3.93 | 176.80% | 5.83% | -18.17% | 3.91% | 8.76% | — | — | -4.48% | -21.64% | -13.77% | -16.35% | 84.664 | State-controlled Korean utility; headline multiple reflects a regulatory tariff reset rather than sustainable earning power. Fuel-cost pass-through reform is the real catalyst — earnings quality hinges on whether the tariff regime normalizes rather than on the base-effect rebound. |
| TCOM | Trip.com Group Limited | Consumer Discretionary | Travel Services | 2.483e+10 | 5.68 | 9 | 102.33% | 22.23% | 5.75% | 53.50% | 19.55% | 0.215 | 7.83% | -12.70% | -24.54% | -49.17% | -18.87% | 73.1449 | China travel recovery play with an unusually high net margin for a platform. The discount reflects geopolitical/ADR delisting overhang and slower outbound volume, not the operating model — a re-rating depends on Chinese consumer travel demand stabilizing. |
| RCI | Rogers Communication, Inc. | Communication Services | Telecom Services | 1.959e+10 | 3.75 | 8.8 | 298.27% | 3.22% | — | 48.83% | 28.44% | — | — | -15.06% | -10.28% | -8.97% | -12.85% | 68.416 | Canadian wireless incumbent carrying heavy leverage after the Shaw integration. Cheap multiple is a function of balance-sheet risk and competitive pricing pressure; dividend sustainability and deleveraging pace matter more than the earnings bounce. |
| B | Barrick Mining Corporation | Materials | Gold | 6.775e+10 | 10.4 | 9.14 | 131.67% | 31.22% | 17.84% | 42.19% | 19.92% | — | 0.84% | -8.84% | -2.98% | 21.37% | -2.09% | 66.1202 | Senior gold miner with strong margins and a healthy 1M relative-strength profile. Earnings power is levered to the gold price rather than volume growth — a hedge against the rate-sensitive financials that dominate the cheap end of this list. |
| ALL | Allstate Corporation (The) | Financials | Insurance - Property & Casualty | 5.657e+10 | 4.48 | 8.12 | 123.22% | 5.58% | -6.70% | 15.17% | 32.48% | 0.243 | 17.42% | -13.73% | 8.64% | 7.80% | -3.15% | 65.2787 | P&C insurer with an outsized FCF yield; the low trailing multiple partly reflects one-off reserve/auto margin normalization. Combined-ratio discipline and pricing power in auto insurance are the swing factors — a quality name in a sector under broad de-rating pressure. |
| FUTU | Futu Holdings Limited | Financials | Capital Markets | 1.432e+10 | 11.3 | 8.36 | 107.88% | 67.78% | 31.24% | 49.62% | 28.34% | 0.116 | — | -13.47% | -25.94% | -41.16% | -15.61% | 65.2345 | Hong Kong online brokerage; earnings are directly geared to Chinese retail trading volumes and risk appetite, so growth is cyclical and sentiment-driven. Revenue acceleration is genuine but fragile — a sentiment beta, not a compounder. |
| AGI | Alamos Gold Inc. | Materials | Gold | 1.526e+10 | 11.63 | 10.62 | 211.57% | 34.29% | 2.67% | 48.97% | 19.92% | — | — | -10.06% | -29.29% | -7.21% | -14.33% | 64.9441 | Mid-tier gold producer with sector-leading margins and low-cost operations. The discount to senior producers reflects jurisdiction concentration (Canada/Mexico/Turkey) — mine development execution is the operational catalyst. |
| SBS | Companhia de saneamento Basico | Utilities | Utilities - Regulated Water | 1.892e+10 | 11.96 | 11.14 | 171.87% | 41.35% | 25.40% | 26.50% | 25.94% | — | — | 5.70% | -11.48% | 9.91% | -5.08% | 64.6697 | Brazilian water/sanitation concessionaire; growth comes from a regulated capex-driven tariff base rather than demand. Policy and currency risk explain the discount — a genuine infrastructure-growth story underneath heavy macro overhang. |
| VG | Venture Global, Inc. | Energy | Oil & Gas Midstream | 3.283e+10 | 10.02 | 13.55 | 56.53% | 176.93% | 213.97% | 19.85% | 37.79% | 5.22 | — | -10.63% | -9.95% | -10.07% | -0.70% | 64.5177 | LNG exporter with a step-change in volumes from new liquefaction trains — but elevated leverage and large project capex mean the equity is a bet on commissioning timelines and LNG contract pricing. High revenue growth is real, financing risk is the offset. |
| EIX | Edison International | Utilities | Utilities - Regulated Electric | 2.074e+10 | 5.56 | 8.28 | 204.08% | 9.76% | 2.04% | 24.34% | 27.14% | 2.5 | — | -2.36% | -24.87% | 1.03% | -21.91% | 63.6084 | California utility trading at a deep discount on wildfire liability fears rather than earnings power. The cheap multiple is a litigation-risk premium — resolution of the liability framework (and cost recovery) is the catalyst that either unlocks or confirms the discount. |
| HMY | Harmony Gold Mining Company Lim | Materials | Gold | 1.074e+10 | 10.93 | 5.2 | 67.45% | 20.39% | -4.17% | 19.69% | 29.99% | — | — | -10.64% | 10.03% | -3.94% | 0.93% | 61.893 | South African gold miner with a clear uptrend and high-margin assets; growth is a function of rand cost leverage and grade recovery. Country/currency risk is the persistent discount driver — earnings are volatile quarter to quarter. |
| AGNC | AGNC Investment Corp. | Real Estate | REIT - Mortgage | 1.042e+10 | 4.37 | 5.86 | 93.51% | — | — | — | 13.71% | — | — | -16.17% | -7.28% | 1.41% | -12.64% | 61.4645 | Mortgage REIT; the low multiple reflects a levered spread business sensitive to the shape of the yield curve. Its generous payout and cheapness are structural, not a growth signal — book value moves with agency MBS spreads, and it ranks among the weakest 1M themes. |
| NLY | Annaly Capital Management Inc. | Real Estate | REIT - Mortgage | 1.394e+10 | 4.47 | 5.95 | 102.78% | — | — | — | 12.61% | 0.0021 | — | -15.42% | -7.10% | 2.63% | -11.46% | 60.8725 | Fellow agency mREIT with the same curve-sensitivity profile; earnings are a declining function of funding spreads. Cheap on P/E and P/B but with no operating moat — treat as a carry trade rather than a value compounder. |
| GFI | Gold Fields Limited | Materials | Gold | 3.173e+10 | 9.04 | 6.63 | 77.68% | 15.57% | 10.58% | 24.81% | 24.05% | — | 0.46% | -18.90% | -23.44% | -10.18% | -11.76% | 60.2491 | South African gold miner; a high trailing-earnings base plus a low forward multiple implies the market expects metal prices to hold. Dividend yield and margin expansion are attractive, but the earnings series is far more cyclical than the screen suggests. |
| NEM | Newmont Corporation | Materials | Gold | 1.218e+11 | 14.57 | 10.92 | 111.98% | 21.34% | -36.82% | 31.62% | 20.52% | 0.162 | — | -7.48% | 1.77% | 35.71% | 4.98% | 60.0095 | The largest gold producer and the most liquid, institutional-quality exposure on the list; margins have widened materially on higher realized prices. The forward multiple below trailing signals the market still expects earnings to grow — a defensive, negative-duration hedge. |
| EVR | Evercore Inc. | Financials | Capital Markets | 1.006e+10 | 14.73 | 11.59 | 53.38% | 29.49% | 6.83% | 16.51% | 35.95% | 0.313 | — | -9.36% | -13.71% | -20.06% | -17.05% | 58.9897 | Boutique investment bank; earnings are levered to M&A and advisory activity, which is cycle-dependent. The revenue acceleration reflects a rebound in dealmaking — a high-beta play on a capital-markets recovery, with the cheap multiple discounting a slow cycle. |
| SUZ | Suzano S.A. | Materials | Paper & Paper Products | 1.047e+10 | 4.83 | 5.74 | 290.75% | — | — | — | 30.57% | — | — | -7.00% | -13.70% | -9.47% | -3.81% | 58.9441 | Brazilian pulp producer trading near book value; earnings are levered to hardwood pulp prices and FX. A low forward multiple suggests the market anticipates pricing pressure — the discount is a commodity-cycle call rather than a company-specific gap. |
| GEN | Gen Digital Inc. | Information Technology | Software - Infrastructure | 1.316e+10 | 12.86 | 6.66 | 51.32% | 27.06% | 23.51% | 19.46% | 37.27% | 3.23 | 11.44% | -28.25% | 17.55% | -20.24% | -9.51% | 58.9297 | Consumer security software with sticky subscriptions and a high free-cash-flow yield. Leverage from past acquisitions pressures the balance sheet; the screen's revenue acceleration and FCF profile make it one of the few genuine cash-compounding tech names in this cheap cohort. |
| PTC | PTC Inc. | Information Technology | Software - Application | 1.563e+10 | 13.97 | 16.2 | 95.04% | 19.18% | 9.57% | 26.80% | 21.15% | 0.46 | 5.39% | -3.42% | 0.97% | -28.85% | 3.81% | 58.6225 | Industrial software with high recurring revenue and a rising margin profile; forward P/E above trailing reflects expected near-term margin/tax normalization rather than peaking earnings. A quality compounder that has been indiscriminately sold with software — worth watching for a momentum repair. |
| ING | ING Group, N.V. | Financials | Banks - Diversified | 8.989e+10 | 13.03 | 10.9 | 53.77% | 21.77% | 5.40% | 33.49% | 15.54% | — | — | -4.37% | 46.65% | 39.93% | 12.83% | 57.6575 | Large Dutch diversified bank with strong ROE and an uptrend; earnings benefit from rate levels and capital returns. Cheap versus US peers on P/B — a rate/credit-sensitive value name that has held up better than most financials in the recent drawdown. |
| AER | AerCap Holdings N.V. | Industrials | Rental & Leasing Services | 2.269e+10 | 7.09 | 7.93 | 78.72% | 6.50% | 1.01% | 44.04% | 20.47% | 2.39 | 15.96% | -0.40% | 4.27% | 18.56% | 0.64% | 56.5117 | Aircraft lessor; the trailing multiple understates a business benefiting from a tight aircraft-supply market and rising lease rates. Earnings are sensitive to impairment cycles and residual values — a cyclical value name with genuine pricing power in its fleet. |
| PUK | Prudential Public Limited Compa | Financials | Insurance - Life | 3.347e+10 | 8 | 12.34 | 70.56% | 6.99% | -3.27% | 35.85% | 19.28% | — | — | -9.36% | -14.83% | -10.87% | -13.11% | 55.0482 | UK/Asia life insurer trading at book; the discount reflects Asia growth uncertainty and persistent UK equity pessimism. Strong margin and forward multiple below trailing suggest the market continues to expect earnings growth — an EM-exposed value with currency/regulatory overhang. |
| ES | Eversource Energy (D/B/A) | Utilities | Utilities - Regulated Electric | 2.43e+10 | 13.81 | 13.14 | 107.51% | 13.83% | 13.92% | 12.55% | 10.28% | 1.79 | — | -7.35% | -4.95% | -5.75% | -6.86% | 54.4384 | New England regulated utility; the cheap multiple relative to peers reflects offshore-wind cost overruns and write-down risk. If the wind exposure is contained, the core regulated asset base supports the dividend — the story is a de-risking catalyst. |
| CI | The Cigna Group | Health Care | Healthcare Plans | 7.148e+10 | 11.19 | 8.08 | 66.44% | 11.24% | -15.32% | 2.29% | 14.90% | 0.696 | 12.08% | -3.82% | 1.33% | -5.14% | -2.68% | 54.3271 | Managed-care name under sector-wide pressure from medical-cost trend and pharmacy-benefit scrutiny. The low forward multiple and strong FCF yield suggest the market has already priced a lot of bad news — margin stabilization is the catalyst. |
| CNQ | Canadian Natural Resources Limi | Energy | Oil & Gas E&P | 8.562e+10 | 11.96 | 12.67 | 77.20% | 8.71% | 9.58% | 27.91% | 24.39% | — | — | -5.67% | 3.93% | 56.95% | 5.58% | 51.6377 | Senior Canadian oil & gas producer with an uptrend and a long dividend-growth track record; earnings are levered to WTI and differentials. Capital-return discipline (buybacks + dividends) gives it a quality overlay that pure E&Ps lack. |
| T | AT&T Inc. | Communication Services | Telecom Services | 1.665e+11 | 8.02 | 9.48 | 90.86% | 2.71% | 2.78% | 18.61% | — | — | 11.79% | -6.36% | -12.17% | -7.64% | -1.89% | 51.5882 | Telecom giant with a high dividend and stable cash flows — growth is modest and driven by postpaid/fiber mix. It screens cheap on P/B with strong FCF yield, but the low earnings-growth compounder profile makes it an income holding rather than a growth play. |
| RGA | Reinsurance Group of America, I | Financials | Insurance - Reinsurance | 1.629e+10 | 10.98 | 8.43 | 64.23% | 7.20% | -11.87% | 5.02% | 8.94% | 0.459 | 25.45% | -1.17% | 25.59% | 32.84% | 12.63% | 51.2928 | Life reinsurer with capital-returns capacity and an uptrend; earnings are volatile due to mortality/morbidity reserving and alternative-investment marks. The discount reflects complexity, not a broken model — a real value name with earnings-quality caveats. |
| LTM | LATAM Airlines Group S.A. | Industrials | Airlines | 1.635e+10 | 8.86 | 7.58 | 49.73% | 11.16% | 0.91% | 10.26% | 109.45% | — | — | -6.46% | 3.94% | 8.11% | -7.29% | 50.9902 | South American airline post-bankruptcy-restructuring; earnings are a function of travel demand, fuel and FX. Very high ROE on a slim equity base (a restructuring artifact) — treat the multiple with caution, as the balance sheet is the real story. |
| SPG | Simon Property Group, Inc. | Real Estate | REIT - Retail | 7.629e+10 | 14.19 | 29.96 | 96.56% | 6.72% | 1.33% | 84.28% | 110.40% | 5.96 | — | -3.37% | 8.83% | 13.19% | -2.16% | 48.5261 | Top-tier mall REIT with very high margins; the low trailing multiple and huge forward-multiple gap reflect REIT accounting quirks (depreciation) rather than earnings collapse. Occupancy and tenant pricing power are the fundamentals to track — a quality REIT in a weak sector tape. |
| KGC | Kinross Gold Corporation | Materials | Gold | 3.185e+10 | 9.15 | 7.86 | 148.49% | — | — | — | 28.41% | — | — | -20.49% | -23.43% | -5.09% | -15.10% | 47.6393 | Senior gold miner with expanding margins and a cheap forward multiple; production growth from asset development is the operational catalyst. Earnings remain highly levered to the gold price — a cyclical, not a defensive, holding despite the 'gold' label. |
| ZM | Zoom Communications, Inc. | Information Technology | Software - Application | 2.71e+10 | 13.68 | 14.75 | 88.09% | 4.36% | 1.31% | 39.03% | 19.06% | 0.0059 | 7.03% | -3.11% | 12.77% | 14.27% | 0.71% | 46.9419 | Communications software with a net-cash balance sheet and strong margins; the flat revenue growth means the multiple is a stabilization story rather than a growth one. Cheapest-quality tech name here but needs to show durable enterprise seat growth to re-rate. |
| SOLV | Solventum Corporation | Health Care | Medical Instruments & Supplies | 1.495e+10 | 10.74 | 12.17 | 224.84% | 0.86% | 0.16% | 18.69% | 31.31% | 1.11 | — | -4.41% | 38.19% | 20.28% | 13.10% | 46.4562 | 3M healthcare spinoff in an active uptrend; the discount reflects a post-separation restructuring overhang and litigation exposure. Margin recovery and portfolio rationalization are the catalysts — a genuine self-help value story with headline risk. |
| FMS | Fresenius Medical Care AG | Health Care | Medical Care Facilities | 1.267e+10 | 11.59 | 6.11 | 60.79% | 1.51% | 2.11% | 6.07% | 8.34% | — | 9.99% | -1.77% | 3.29% | -13.05% | -1.54% | 46.1864 | German dialysis provider with a low forward multiple that discounts reimbursement and turnaround risk. Operating leverage on a heavy debt load makes the equity highly sensitive to margin execution — a deep-value European healthcare play with balance-sheet risk. |
| GSK | GSK plc | Health Care | Drug Manufacturers - General | 1.015e+11 | 14.74 | 9.16 | 113.11% | 4.11% | 0.66% | 19.25% | 39.41% | — | — | -6.76% | -15.53% | 7.00% | -9.05% | 46.134 | UK pharma with a rich pipeline but facing patent-cliff and litigation overhang; a break-below and downtrend signal sentiment is weak. The dividend and cheap forward multiple offer support — a value pharma with a catalyst-dependent re-rating path. |
| AU | AngloGold Ashanti PLC | Materials | Gold | 4.801e+10 | 12.72 | 9.54 | 202.57% | — | — | — | 32.01% | — | — | -11.97% | -4.48% | 38.58% | 0.52% | 44.092 | Gold miner with strong margins and one of the better 1M relative-strength profiles in the group. Earnings are levered to the metal and to operational turnarounds at legacy assets — a cyclical value name, not a quality compounder. |
| PGR | Progressive Corporation (The) | Financials | Insurance - Property & Casualty | 1.221e+11 | 10.55 | 12.92 | 33.35% | 16.32% | -5.04% | 12.90% | 35.29% | 0.262 | 14.05% | -4.95% | 7.81% | -9.08% | 1.00% | 43.4723 | Auto insurer with a durable combined-ratio advantage and consistent underwriting discipline; growth is driven by unit expansion rather than price. A rare quality name at a reasonable multiple — the earnings growth is genuine, though the stock has already run and tends to trade at a premium to peers. |
| BMY | Bristol-Myers Squibb Company | Health Care | Drug Manufacturers - General | 1.249e+11 | 13.47 | 9.32 | 178.83% | -0.22% | -7.54% | 14.64% | 31.61% | 2.06 | 10.23% | -9.62% | 1.21% | 42.10% | 2.25% | 43.4097 | Large pharma in an uptrend with a strong FCF yield and a low forward multiple reflecting patent-cliff (Revlimid/Eliquis) concerns. The pipeline and buyback capacity provide a floor — a classic 'cheap with a catalyst' pharma name where the earnings growth is inflated by cost cuts. |
| JLL | Jones Lang LaSalle Incorporated | Real Estate | Real Estate Services | 1.412e+10 | 14.72 | 10.86 | 44.88% | 11.45% | -1.42% | 3.03% | 10.84% | 0.262 | 8.09% | -12.32% | 0.25% | 3.19% | -5.51% | 43.1967 | Commercial real estate services firm; earnings are levered to transaction volumes and capital-markets activity. The low margin is characteristic of brokerage — the screen's growth reflects a cyclical rebound in deal activity rather than a durable earnings stream. |
| NTR | Nutrien Ltd. | Materials | Agricultural Inputs | 3.592e+10 | 14.18 | 14.32 | 228.14% | — | — | — | 9.06% | — | — | -12.07% | -5.61% | 26.71% | -0.62% | 43.1559 | Agricultural input producer; earnings are a function of fertilizer prices and potash volumes, making the cheap multiple a commodity-price call. The revenue-growth figure is unreliable due to volatile pricing — a cyclical value play with meaningful commodity risk. |
| BTI | British American Tobacco Indus | Consumer Staples | Tobacco | 1.273e+11 | 13.36 | 10.08 | 144.11% | -0.99% | 4.20% | 30.32% | 16.13% | — | — | -5.46% | -8.42% | 6.48% | -9.97% | 42.8644 | Tobacco giant with a very high dividend and low P/B; earnings growth is driven by cost efficiency and next-generation products, offset by declining cigarette volumes. A classic income-value name whose re-rating depends on regulatory/ESG sentiment, not operational surprise. |
| APA | APA Corporation | Energy | Oil & Gas E&P | 1.53e+10 | 9.22 | 10.23 | 51.34% | — | — | — | 24.10% | 0.533 | — | -2.28% | 5.33% | 80.38% | 14.43% | 42.4917 | Independent E&P with an uptrend; earnings are purely a function of oil/gas prices and the screen's growth reflects a pickup in realized prices and Permian volumes. A leveraged play on crude — buy the cycle, not the multiple. |
| CF | CF Industries Holdings, Inc. | Materials | Agricultural Inputs | 1.741e+10 | 8.53 | 11.03 | 21.73% | 19.34% | 29.82% | 25.38% | 31.28% | 0.633 | 10.40% | -17.42% | -10.69% | 35.82% | -4.20% | 41.7059 | Nitrogen fertilizer producer with strong margins and a low P/E; the forward multiple above trailing warns that the market expects softer nitrogen prices. The earnings growth is real but pricing-dependent — a cyclical value name trading on commodity spreads. |
| IX | ORIX Corporation | Financials | Financial Conglomerates | 3.86e+10 | 10.55 | 3.16 | 30.34% | 15.86% | 13.71% | 13.76% | 10.22% | 1.52 | — | -7.06% | 23.61% | 43.82% | 1.44% | 41.3484 | Japanese financial conglomerate; the extremely low forward multiple reflects persistent Japan-value discount and conglomerate complexity. An uptrend and solid returns make it a cheap sum-of-the-parts story — a re-rating candidate if cross-holdings are unwound. |
| RNR | RenaissanceRe Holdings Ltd. | Financials | Insurance - Reinsurance | 1.353e+10 | 5.64 | 7.94 | 22.20% | 9.86% | -18.17% | 28.16% | 31.42% | 0.215 | — | -1.59% | 8.66% | 27.44% | 5.15% | 41.3433 | Property-catastrophe reinsurer; the low multiple reflects a favorable but volatile underwriting cycle. Earnings are lumpy around catastrophe losses — a strong capital-returns story whose cheap multiple prices in earnings normalization. |
| UHS | Universal Health Services, Inc. | Health Care | Medical Care Facilities | 1.036e+10 | 7.18 | 7.29 | 29.93% | 9.71% | -1.11% | 8.70% | 20.11% | 0.822 | 8.23% | 4.91% | -0.30% | -13.28% | 4.17% | 41.3344 | Hospital operator with a low multiple reflecting reimbursement/payer-mix pressure; the uptrend and consistent growth from behavioral-health expansion give it a quality tilt. Payer-mix risk is the key swing factor — a value name with a defensive end-market. |
Value & Quality Context
Cheap multiples, improving earnings — the value/quality sweet spot
This screen isolates US-listed large caps (>$10B) trading under 15x trailing earnings while earnings are still growing — the classic "cheap but not broken" bucket. Names are ranked by a blended Value+Growth Score that weights cheapness (relative inverse P/E), earnings growth quality and revenue growth, capped to avoid one-off distortion from depressed prior-year bases.
How to read the list
- Global cyclicals dominate the cheapest tier. Korean, Brazilian, Canadian and Chinese ADRs appear repeatedly because country-level multiple compression, not company fundamentals, drives their discounts. Earnings growth is often a base-effect recovery off a weak prior year — verify the level, not just the delta.
- Gold and commodity producers show explosive EPS growth on the back of higher realized prices, but their multiples and cash flows stay tethered to the metal. Treat the growth as cyclical, not structural.
- Financials and insurers screen well on P/E and ROE but carry duration/credit sensitivity — the market backdrop shows financials down ~6% over the past month as rates and credit spreads move against them.
- Pipes and telecom (high dividend, low P/B) offer income-heavy value but limited growth optionality — the screen favors those with genuine revenue acceleration.
Quality guardrails: prefer names where net margin is stable-to-rising, ROE is double-digit, debt/equity is contained, and free-cash-flow yield is positive. A low forward P/E below the trailing multiple signals the market expects growth to continue — the opposite (forward above trailing) warns that earnings are peaking.
Key risk framing: with the average US stock still under its 50-day and pressure building in rate-sensitive and storage/memory complexes, cheapness alone is not a catalyst. Favor names showing relative-strength improvement (positive vs. 150D SMA, up 1-6 month returns) alongside the valuation discount — those are where value and momentum agree.
Run a version of this yourself
Describe the idea in plain English and Relaxfolio returns a researchable shortlist with the charts, fundamentals, and risks attached.
Educational research tool — not investment advice. A screen is a starting point, not a recommendation.