It is true: these four stocks with low price-earnings ratios greatly outperformed most other stocks on Friday and all hit new 52-week highs. The reasons for each may vary but generally it’s likely that investors felt that these names would not be greatly affected by the Trump tariffs and the ensuing global trade war.
That a stock could move higher in price while the major stock market indexes dropped dramatically is some kind of achievement. Further research into each situation is probably required but it’s enough to begin with to see such strength in the face of such market weakness.
4 Low P/E Stocks With New Highs During Market Crash
American Electric Power
The big utility outfit hit a new high early in Friday’s session, just barely a new high but that counts. The stock then spent the rest of the day selling off but managed to stay above the up trending 50-day moving average. Take a look at the relentlessness of the 200-day moving average’s up trend.
American Electric Power has a market capitalization of $55.79 billion. The price-earnings ratio of 18.70 is significantly lower the p/e of 31 for the S&P 500. The debt-to-equity ratio is 1.70. The company pays a 3.61% dividend.
Exelon
This utilities company popped to a new high near the opening of Friday’s trading and then mostly sold off for the rest of the day. The price remains above an up trending 50-day moving average and it’s well above a 200-day moving average that keeps heading higher.
Exelon has a market cap of $45.78 billion. The price-earnings ratio is 18.49. The debt-t0-equity ratio is 1.75. This year’s earnings are up 7.47% and down over the past five years by 4.04%. The stock is a component of the S&P 500 and of the Nasdaq 100. Exelon pays a 3.54% dividend.
Kroger
The grocery store chain hit a new high of $71.93 early on Friday and then profit-taking took it back down to $67.18 at the close. The price stayed above the up trending 50-day moving average. The 200-day moving average continues to move higher. These measures indicate that investors are mostly undeterred about owning shares.
Kroger’s market cap is $44.40 billion. The price-earnings ratio is 18.27. The debt-to-equity ratio is 3.03. This year’s earnings increased 6.04%. Earnings over the past five years are up 12.51%. The company offers investors a dividend of 1.99%.
Pilgrims Pride
The new high of $51.54 came early in the session. Sellers came back in and by the close of trading, the stock stopped at $49.97. The price remains above up trending 50-day and 200-day moving averages. Again, this is despite huge selling to below such measures in most other NYSE equities.
The packaged food company specializes in poultry products. Pilgrim’s Pride has a market cap of $11.85 billion. The price-earnings ratio is 10.94. The debt-to-equity ratio is .82. Earnings this year are down 7.02%. Over the past five years, earnings have been up 20.13%.
Stats courtesy of FinViz.com. Charts. Courtesy of Stockcharts.com.
More analysis and commentary at johnnavin.substack.com.
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