One of the most difficult tasks we face as self-investors is finding the right stock at the right price when we are ready to buy. To make things easier for you, I have scoured the market and found three stocks that are trading at inexpensive forward valuations, so let’s take a closer look at each to determine which would fit best in your portfolio.
1. Capital Power Corporation
Capital Power Corporation (TSX:CPX) is one of the largest power producers in Alberta. At today’s levels, its stock trades at 18.4 times fiscal 2015’s and 2016’s estimated earnings per share of $1.18, which is inexpensive compared with its five-year average price-to-earnings multiple of 52.7 and the industry average multiple of 22.4. In addition, the company pays a quarterly dividend of $0.34 per share, or $1.36 per share annually, giving its stock a 6.3% yield.
2. Equitable Group Inc.
Equitable Group Inc. (TSX:EQB) is one of the largest financial institutions in Canada with approximately $13.4 billion in total assets. At current levels, its stock trades at 7.4 times fiscal 2015’s estimated earnings per share of $7.33 and 6.6 times fiscal 2016’s estimated earnings per share of $8.19, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 7.9 and the industry average multiple of 47.6. Additionally, the company pays a quarterly dividend of $0.19 per share, or $0.76 per share annually, which gives its stock a 1.4% yield.
3. COM DEV International Ltd.
COM DEV International Ltd. (TSX:CDV) is one of the world’s leading designers and manufacturers of space hardware and systems. At today’s levels, its stock trades at 44 times fiscal 2015’s estimated earnings per share of $0.13 and 17.9 times fiscal 2016’s estimated earnings per share of $0.32, the latter of which is inexpensive compared with its five-year average price-to-earnings multiple of 39.8 and the industry average multiple of 38.5. In addition, the company pays a quarterly dividend of $0.03 per share, or $0.12 per share annually, giving its stock a 2.1% yield.
Should you buy one of these stocks today?
Capital Power, Equitable Group, and COM DEV International are thee of the top value plays in their respective industries. Foolish investors should take a closer look and consider establishing positions in one or more of them today.
