5 Cheap Stocks Guru Investors Are Buying

The P/E ratio is a strong indicator of whether a stock is a good value, and the lower the better. For this reason, many of the stocks with the lowest P/E ratios are broadly held by the investors.

However, a low P/E ratio requires further investigation, as the company could be in terminal decline, belong to an industry with endemic problems, or have other unfavorable valuations that make it unattractive as an investment. 

 Below are 5 of the cheapest stocks that were bought by investment guru’s within the recent quarter. Four of the results pay a dividend. It’s only a first step for further research but in my view, there are some interesting stocks on the list.

These are the results:

#1 Fifth Third Bancorp — Yield: 2.50%

Fifth Third Bancorp (NASDAQ:FITB) employs 18,351 people, generates revenue of $4,030.00 million and has a net income of $1,483.00 million. The current market capitalization stands at $16.81 billion. 

Fifth Third Bancorp’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,826.00 million. The EBITDA margin is 47.39% (the operating margin is 34.01% and the net profit margin 24.87%). 

Financials: The total debt represents 12.02% of Fifth Third Bancorp assets and the total debt in relation to the equity amounts to 106.66%. Due to the financial situation, a return on equity of 10.07% was realized by Fifth Third Bancorp. 

Twelve trailing months earnings per share reached a value of $1.74. Last fiscal year, Fifth Third Bancorp paid $0.51 in the form of dividends to shareholders. 

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.95, the P/S ratio is 2.83 and the P/B ratio is finally 1.20. The dividend yield amounts to 2.50%. - Read more here: 5 Cheap Stocks Guru Investors Are Buying….