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Attractive Stocks Under $35 - S&P 500 Including Bristol-Myers Squibb (BMY), Harris Corp (HRS)
By: Value Expectations   Thursday, September 03, 2009 11:46 AM

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Related: AEP, BIG, BMY, BSX, CAG, ERTS, HRS, SEE, STZ, VZ

Fidelity has a fund called the Low Priced Stock fund that only contains stocks with a price of below $35 a share which has been successful in the past. Following a similar strategy ValueExpectations.com has published 2 articles containing attractive stocks under $35 as a starting place for investor’s looking for potential investment opportunities. The first low priced stock strategy blog outpaced the S&P 500 by over 58% since release in February the second article released in June has slightly underperformed the S&P 500 by -1.26%. Since this strategy has been well received by VE readers we decided to provide a new list of attractive stocks using the same strategy.  Below is a list of S&P500 stocks that are currently trading under $35 a share that have passed through AFG’s investment criteria which looks for companies ranked in the top half of their sector in valuation, economic performance, management quality and earnings quality. All of the companies listed scored well in all of the required variables for AFG to deem a company attractive and backtests will show that all of these variables deliver a significant spread in performance between those that AFG sees as unattractive vs. those that look attractive from an AFG standpoint.  To analyze your holdings using AFG’s research process click here.

      AFG Rank within Sector
Ticker Name Sector Investment Opportunity Valuation Signal EM Change Signal
 
(NYSE: BMY) BRISTOL-MYERS SQUIBB CO Health Attractive Attractive Positive
(NYSE: HRS) HARRIS CORP Technology Attractive Attractive Positive
(NYSE: AEP) AMERICAN ELECTRIC POWER Utilities Attractive Attractive Positive
(NYSE: VZ) VERIZON COMMUNICATIONS Technology Attractive Attractive Positive
(NASDAQ:ERTS)  ELECTRONIC ARTS INC Technology Attractive Attractive Positive
(NYSE:STZ)  CONSTELLATION BRANDS INC Consumer Non Durable Attractive Attractive Positive
(NYSE:BSX)  BOSTON SCIENTIFIC CORP Health Attractive Attractive Positive
(NYSE:SEE)  SEALED AIR CORP Basic Material Attractive Attractive Positive
(NYSE:CAG) CONAGRA FOODS Consumer Non Durable Attractive Attractive Positive
(NYSE:BIG) BIG LOTS INC Consumer Services Attractive Attractive Positive
 
   

AFG's Valuation Metric – Measures the percent to target (deviation between a stock’s current trading price and its AFG current default target price). To derive the intrinsic value of a firm, AFG uses its proprietary Valuation Model (modified discounted cash flow model).

Economic Margin - A corporate performance measurement that addresses the gaps in GAAP, eliminating distortions caused by accounting policies to measure what a company is truly earning above or below their cost of capital.

Management Quality – Assesses management’s ability to make wealth creating decisions.


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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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