12 Cheapest Stocks In The S&P 500
Value stocks have underperformed growth stocks for over a decade, and 2019 is no exception. So far this year, the Vanguard Growth ETF (NYSE: VUG) is up 23.5%, while the Vanguard Value ETF (NYSE: VTV) is up just 13.7%.
JPMorgan recently said value stocks are currently trading at their largest discount to growth stocks in the past 30 years.
John Lynch, Chief Investment Strategist at LPL Financial, said this week that growth stocks have historically performed relatively well during the first year following a Federal Reserve rate cut, assuming the U.S. economy doesn’t fall into a recession. Despite the historical trend, Lynch said he still recommends buying value stocks today.
“We would still recommend tilting equity allocations slightly toward the value style because of the duration and magnitude of the growth rally, which has left value stocks attractively valued in our view,” Lynch said.
Here are the 12 cheapest value stocks in the S&P 500 based on forward price-to-earnings ratio, according to Finviz.
- Owens-Illinois Inc (NYSE: OI), 4.0 forward PE.
- Mylan NV (NASDAQ: MYL), 4.6 forward PE.
- Southwestern Energy Company (NYSE: SWN), 4.6 forward PE.
- Unum Group (NYSE: UNM), 4.7 forward PE.
- American Airlines Group Inc (NASDAQ: AAL), 5.0 forward PE.
- Delphi Technologies PLC (NYSE: DLPH), 5.5 forward PE.
- Alliance Data Systems Corporation (NYSE: ADS), 5.5 forward PE.
- Lincoln National Corporation (NYSE: LNC), 5.5 forward PE.
- Capri Holdings Ltd (NYSE: CPRI), 5.5 forward PE.
- Affiliated Managers Group, Inc. (NYSE: AMG), 5.7 forward PE.
- United Rentals, Inc. (NYSE: URI), 5.7 forward PE.
- Navient Corp (NASDAQ: NAVI), 5.8 forward PE.
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