The 4 lowest P / E stocks among the constituents of the Dow 30

With the Walt Disney Company

SAY
is now trading with a price / earnings ratio of 143 and with the

CRM
p / e up there at 127, what’s the p / e for the Dow Jones Industrials taken together? The most recent ratio for these 30 stocks combined is only 22 – an almost reasonable measure compared to major tech indexes.

What Dow components hold it in place? Or, to put it another way, which of the 30 stocks on this index look more like value stocks than the others? Well, there are 4 stocks with price / earnings ratios of less than 10, an extraordinary achievement considering the fervor in stocks in general lately.

Here they are:

Dow.

The historic chemicals company, headquartered in Midland, Michigan, has a market capitalization of $ 43.71 billion and an enterprise value of $ 57.23 billion. At a time when the price / earnings ratio of the S&P 500 is 39, it is semi-amazing that Dow’s p / e is at 7.

The company’s price to reserve the metric is 2.66, a reasonable figure given that the price of the S&P 500 to reserve now comes to 4.82. Earnings per share this year are up 167%, but Wall Street analysts predict that next year’s earnings will be down more than 20%. Meanwhile, investors collect a dividend yield of 4.74%.

Intelligence

INTC

NASDAQ

NDAQ
– the traded semiconductor company trades with a price-earnings ratio of only 10. The price to book value is 2.41. Founded in 1968, the Santa Clara, California-based company now has a market cap of $ 217 billion and an enterprise value of $ 223 billion.

Earnings per share grew 4.90% this year and the EPS growth rate over the past 5 years was 16.20%. Wall Street’s expectations for next year’s earnings are negative: a year of minus 30% is expected. Long-term debt is vastly exceeded by equity. Intel pays a dividend yield of 2.60%.

JPMorgan Chase.

It is the largest of New York City banks with a market cap of $ 490 billion and an enterprise value of $ 117 billion. The price-earnings ratio is 10 and JP Morgan Chase is trading at just 1.94 book value. The average daily volume on the New York Stock Exchange is 11 million highly liquid stocks.

Big bank earnings per share this year are down 17.20% and the record for EPS growth over the past 5 years is relatively low at 8.10%. The company pays a dividend of $ 4 / share, which equates to an annualized return of 2.39%. Banking analysts will be watching closely how interest rates for 2022 might affect JP Morgan Chase.

Verizon Communications

VZ
.

The New York-based telecommunications giant has a market cap of $ 227 billion and an enterprise value of $ 395 billion. The Dow Jones Industrial Average component trades with a price / earnings ratio of 10 and a book value of 2.92. These are low points close to 10 years.

Verizon’s earnings per share are down 7.6% this year. The EPS growth rate over the last 5 years is 0.30% negative. Wall Street analysts expect earnings to start rising again next year and over the next 5 years. Investors continue to receive a dividend of $ 2.56 / share for a yield of 4.72%.

These 4 components are the components of the Dow Jones Industrial Average with the lowest price-earnings ratios. Some investors used to take a similar “dogs of the dow” approach and only invest in these types of stocks and everything else. Let’s go back in a year and see how it worked.

No investment advice. For educational purposes only. Always consult with a registered investment advisor before making a decision.