As investors know, finding the right stock at the right price can be a very difficult task. However, the recent downturn in the market has created a plethora of opportunities. Let’s take a look at three stocks that are now trading at inexpensive forward valuations compared with both their industry and five-year averages, so you can decide which would be the best fit for your portfolio.
1. Silver Wheaton Corp.
(All figures are in U.S. dollars)
Silver Wheaton Corp. (TSX:SLW)(NYSE:SLW) is the largest pure precious metals streaming company in the world. At today’s levels, its stock trades at 28.7 times fiscal 2015’s estimated earnings per share of $0.57 and 24 times fiscal 2016’s estimated earnings per share of $0.68, both of which are inexpensive compared with its industry average price-to-earnings multiple of 41.5 and the latter of which is inexpensive compared with its five-year average multiple of 27.4.
In addition, the company pays a quarterly dividend of $0.05 per share, or $0.20 per share annually, giving its stock a 1.6% yield.
2. Potash Corp./Saskatchewan Inc.
(All figures are in U.S. dollars)
Potash Corp./Saskatchewan Inc. (TSX:POT)(NYSE:POT) is the world’s largest manufacturer and distributor of fertilizer. At current levels, its stock trades at 17.7 times fiscal 2015’s estimated earnings per share or $1.82 and 16 times fiscal 2016’s estimated earnings per share of $2.01, both of which are inexpensive compared with its industry average price-to-earnings multiple of 19 and its five-year average multiple of 19.7.
Also, the company pays a quarterly dividend of $0.38 per share, or $1.52 per share annually, which gives its stock a 6.25% yield.
3. RONA Inc.
RONA Inc. (TSX:RON) is one of Canada’s largest retailers of home improvement products. At today’s levels, its stock trades at 14.6 times fiscal 2015’s estimated earnings per share of $0.95 and 12.8 times fiscal 2016’s estimated earnings per share of $1.08, both of which are inexpensive compared with its industry average price-to-earnings multiple of 17.2 and its five-year average multiple of 23.4.
In addition, the company pays a quarterly dividend of $0.04 per share, or $0.16 per share annually, giving its stock a 1.15% yield.
Which of these stocks should you buy today?
Silver Wheaton, Potash Corp., and RONA are three of the most attractive investment options in their respective industries. Foolish investors should take a closer look and strongly consider establishing positions in at least one of them today.
