Investors could be interested in the following securities, as their forward price-earnings ratios are lower than the S&P 500's historical average price-earnings ratio of 15. The projections of future earnings are based on data from Morningstar analysts.
FB Financial Corp
The first stock that makes the cut is FB Financial Corp (FBK, Financial), a Nashville, Tennessee-based regional bank operating 81 full-service bank branches and nine limited-service branches across Tennessee, North Alabama, Southern Kentucky and North Georgia. The bank also operates 23 mortgage offices in the southeastern region of the United States.
FB Financial Corp has a forward price-earnings ratio of 14.34, which results from Tuesday’s closing price of $44.71 per share and analyst expectations for net earnings per share of approximately $3.12 for the next full fiscal year.
The stock has risen 61.33% over the past year for a market capitalization of $2.11 billion and a 52-week range of $26.30 to $49.62.
GuruFocus has assigned a rating of 3 out of 10 for the company's financial strength and a rating of 4 out of 10 for its profitability.
Wall Street sell-side analysts recommend a median rating of overweight for this stock with an average price target of $44.88 per share.
MFA Financial Inc
The second stock that qualifies is MFA Financial Inc (MFA, Financial), a New York-based real estate investment trust (REIT) with activities in the United States.
MFA Financial Inc has a forward price-earnings ratio of 11.01, which derives from Tuesday’s closing price of $4.65 per share and analyst expectations for earnings of approximately $0.42 per share for the next full fiscal year.
The stock has risen by 57.4% over the past year for a market capitalization of $2.04 billion and a 52-week range of $2.66 to $4.90.
GuruFocus has assigned a rating of 2 out of 10 for the company's financial strength and a rating of 3 out of 10 for its profitability.
Wall Street sell-side analysts recommend a median rating of overweight with an average price target of $4.80 per share for this stock.
Bonanza Creek Energy Inc
The third stock that makes the cut is Bonanza Creek Energy Inc (BCEI, Financial), a Denver, Colorado-based oil and natural gas explorer and producer holding 118.2 million barrels of oil equivalent in proved reserves.
Bonanza Creek Energy has a forward price-earnings ratio of 6.06, which derives from Tuesday’s closing price of $51.04 per share and analyst expectations for earnings of approximately $8.42 per share for the next full fiscal year.
The stock has grown by 144.47% over the past year for a market capitalization of $1.55 billion and a 52-week range of $15.88 to $52.25.
GuruFocus has assigned a rating of 8 out of 10 for the company's financial strength and a rating of 4 out of 10 for its profitability.
Wall Street sell-side analysts recommend a median rating of overweight and have established an average price target of $63.17 per share for the stock.
New Mountain Finance Corp
The fourth stock that matches the criteria is New Mountain Finance Corp (NMFC, Financial), a business development company focusing on investments in middle-market companies and various debt securities.
New Mountain Finance Corp has a forward price-earnings ratio of 11.23, which derives from Tuesday’s closing price of $13.54 per share and analyst expectations for earnings of approximately $1.21 per share for the next full fiscal year.
The stock has grown by 39.1% over the past year for a market capitalization of $1.32 billion and a 52-week range of $8.94 to $13.75.
GuruFocus has assigned a rating of 2 out of 10 for the company's financial strength and a rating of 4 out of 10 for its profitability.
Wall Street sell-side analysts recommend a median rating of overweight and have established an average price target of $13.80 per share for the stock.
Disclosure: I have no positions in any securities mentioned.
