Investors could be interested in the following securities, as their forward price-earnings ratios are lower than the S&P 500's historical average of 15. The projections of future earnings are based on data from Morningstar analysts.
Canadian Natural Resources Ltd
The first stock that makes the cut is Canadian Natural Resources Ltd (CNQ, Financial), a Canadian oil and gas explorer and producer.
Canadian Natural Resources Ltd has a forward price-earnings ratio of 12.39 (versus the industry median of 13.4), which results from Tuesday's closing price of $30.04 per share and analyst expectations for net earnings per share of approximately $2.42 for the next full fiscal year.
The stock has grown 72.84% over the past year for a market capitalization of $35.63 billion and a 52-week range of $14.13 to $32.64.
GuruFocus has assigned a rating of 3 out of 10 for the company's financial strength and a rating of 6 out of 10 for its profitability.
Wall Street sell-side analysts recommend an overweight median rating for this stock and have established an average price target of $37.48 per share.
Centene Corp
The second stock that makes the cut is Centene Corp (CNC, Financial), a St. Louis, Missouri-based provider of multi-national healthcare plans and services to under-insured and uninsured U.S. individuals.
Centene Corp has a forward price-earnings ratio of 11.61 (versus the industry median of 17.34), which derives from Tuesday's closing price of $61.31 per share and analyst expectations for earnings of approximately $5.28 per share for the next full fiscal year.
The stock has fallen by 7.34% over the past year for a market capitalization of $35.66 billion and a 52-week range of $53.6 to $72.31.
GuruFocus has assigned a rating of 6 out of 10 for the company's financial strength and a rating of 8 out of 10 for its profitability.
Wall Street sell-side analysts recommend a median rating of overweight and an average price target of $79.86 per share for this stock.
LyondellBasell Industries NV
The third stock that makes the cut is LyondellBasell Industries NV (LYB, Financial), a Houston, Texas-based international chemical company.
LyondellBasell Industries NV has a forward price-earnings ratio of 9.17 (versus the industry median of 19.74), which derives from Tuesday's closing price of $104.91 per share and analysts' expectations for earnings of approximately $11.44 per share for the next full fiscal year.
The stock has increased by 75.05% over the past year for a market capitalization of $35.07 billion and a 52-week range of $50.06 to $112.73.
GuruFocus has assigned a rating of 4 out of 10 for the company's financial strength and a rating of 7 out of 10 for its profitability.
Wall Street sell-side analysts recommend a median rating of overweight with an average price target of $115.52 per share for the stock.
Disclosure: I have no positions in any securities mentioned.
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