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Thursday subscribers thank you so much for joining me today i am jeremy this is the financial education channel and today we’re talking about ten stocks that are undervalued currently this was a video that was requested by you guys a few times in a row so i’m like you know what let’s go ahead and do this so we’re looking at 10 stocks that p ratios quite a bit lower
Than what all other stocks in the stock market have currently now with undervalued companies and companies that have p’s much lower than other companies right usually it’s because the perception of that company is that the best days of that company or behind it that this company is going to come around come upon either short term troubles or long term troubles for
Whatever reason guys maybe it’s a competitive landscape maybe it’s the management mismanaging the company like whatever reason that’s the perception out there many times with undervalued companies so so what we’re going to face a lot of today on is the trailing 12-month pe so there’s three different realities you can look at right there’s there’s what the company did
For eps the previous year versus what the stock price is you can calculate that there’s also the forward p which is actually my favorite but we’re not looking at that for today’s for today’s argument but the 40 is judging what the company is probably going to earn next year versus what the share price is today we’re looking at is actually my second period p/e ratio
Which is the last twelve months though it’s called the ttm the trailing 12-month period so that means less eps for last four quarters versus what the companies share prices and that’s how you calculate this p/e ratio we’re looking at today guys so i hope you enjoyed it let’s get right into it so number one number one is for the ford motor company one of the biggest
Auto makers in the entire world guys this is currently a stock that has a p/e ratio like i said the last 12 months above 12 right now all these stocks we’re going to look at they all have under 15 while most stocks in the stock market currently have well over 20 right now so this one has under 12 it has a great dividend right now look at that dividend over 5% and
Then let’s look at the last three years as far as what revenues and profits did so revenues are actually trending up this is great from what it looks like here 2000 teenagers 144 million this are 144 billion excuse me 2015 there’s 149 billion and then this past year they did a hundred and fifty 1 billion dollars guys so that trend very well as far as revenue goes
Then we go ahead and we look at the net income if it just over a billion in 2014-2015 they jumped all the way up to over seven billion dollars is past year they dropped you know quite a bit down there to 4.5 billion dollars now with all these companies you know you want to dig into why a company went from 1 billion to 7 billion in profits and then from 7 billion
To 4 billion profit like some of these companies have ridiculous fluctuations that net income you should always want to look into that so and how do you look into that you go to the investor relations page you look at past annual reports and then you can they’re usually discuss in that annual report somewhere why that company you know had such a increase in net
Income versus or such a decrease in net income guys so definitely look into that next one up here is a micron micron is a huge memory chip company you know memory make memory chips for computers cell phones all types of stuff guys that’s microns business this company has a p/e ratio currently of a little over 13 and this one the revenues are trending down so this
One they did over 16 billion in 2014 over 16 billion in 2015 then this past year dropped down to a little over 12 billion dollars in revenue then we look at the net income they did three billion in 2014 then down to 2.8 billion in 2015 all the way down to unlost last year now once again how do they have a positive p/e of 12 was because once again it’s taking the
Last 12 months into account not last year because if it was last year it would have no p/e ratio on this company right but things are taking the last 12 months the last four quarters last four well three of the four last quarters for micron had been profitable so that’s how you get to a p/e of that and if you actually look at micron on the forty basis he actually
Drops even out quite a bit lower guys delta delta airlines one of the biggest airline companies out there they currently have a p/e ratio of 10 so very very low on this one 10 p ratio and this one we’re looking at of 40 billion darcys me revenue of 40 billion dollars 2014 40 billion dollars again in 2015 pretty close to 40 billion dollars is past year so they’re
Very consistent as far as revenue goes net income they went from 659 million dollars in net income in 2014 all the way up to over four billion dollars in 2015 another four billion dollars this past year guys so net income for for this company is obviously trending pretty good part of that oil prices obviously oil prices came down substantially starting in 2004
The end of 2014 into 2015 like oils you know it’s began the crash and 2016 that was super low even now it’s still super low question is for airlines right is is oil or oil prices going to stay down here or will they ever go back up to $100 a barrel or something like that if that happens arrow and profits will usually drop next one up here is boom and sachs goldman
Sucks so what does goldman sachs have they have a 12 pe ratio on this company currently very nice they have a revenue that is down trending here 2014 they did 34 billion to another 15 they did pretty close to thirty four billion and then this past year they did only thirty billion dollars in revenue here net income is it’s pretty consistent though eight point four
Billion dollars in 2014 six billion dollars 2015 in this past year went up to seven point three almost seven point four billion dollars in net income so that definitely might be want to look at if you’re looking at the banks i mean goldman sachs in my opinion the best run investment bank out there they’re so well politically connected when you see how many people
Are you know in would the white house and however many people you know in presidential cabinets of the past and current have to do with goldman sachs and have worked positions at goldman sachs is quite startled think tides is quite amazing so his company is the best run investment bank out there and they’re so well politically connected it’s amazing aflac aflac an
Insurance company shows up here guys insurance company this company has a little over a 12 p/e so once again very low very low net or excuse me revenues 22 billion in 2014 drop down a twenty billion and this past year a little over twenty two billion once again is a pretty consistent revenues there’s a two point nine billion dollars in net income in 2014 two point
Five billion 2015 this past year two point six billion this is actually a very consistent company i guess a question with an ass black something like that because they’re so consistent you know within their revenues and profits the question is i guess can they ever grow are they going to be stuck there and stagnant forever that’s something for you guys to figure
Out there verizon verizon wireless some of you guys probably have them as your cell phone carrier this is one of the biggest telecoms out there obviously a p/e ratio a little under fifteen currently by the way look at that dividend over five percent yield very nice so revenues on verizon right very consistent but a little down trending here so they went from 127
Billion 2014 to then up to 131 billion 2015 is past year down to about 126 billion then we look at the net income they went from nine billion in 2014 all the way up to over 17 billion dollars in 2015 down to 13 billion dollars this past year verizon you know once again why are those numbers jumping around so much you can take the things you want to always look
Into before you go make an investment like like why you go from nine billion dollars net income all the way up to almost 18 billion then down to 13 like why is that did you you know have businesses you split off like what is the reason for that or there’s some tax implications that affect your business were there lawsuits like like what is going on there because
That’s that’s ridiculous to go from 9 billion to make sure you’re doing 17 to the next year doing 13 it’s like there’s no consistency at all so what is the reason for verizon because should be a consistent company right like should be consistent at the end of the day ibm ibm one of the biggest tech information companies out there been around for a long time now
This company has a p ratio of around 12 right now very low p/e now this company obviously has down trending revenues here so 92 billion they did to us on 14 dropped down to 81 billion in 2015 this past year dropped down to 79 billion and then as far as the net income goes net incomes actually stayed pretty good even with that even with those big drops and net and
Revenue then income 12 billion 2014 13 billion 2015 in all of you know eleven point eight billion this past year so i’m actually very impressed with the way idm has still kept up net income despite the revenue kind of be in a downtrend there guys so very interesting company look into all say another insurance play here also in good hands or what are they saying you
Know guys ever watched college football is like allstate commercials are on like every commercial break which is college football it’s insane this company currently has a p/e of fifteen right now very low once again they have revenues that are pretty consistent actually in a slight uptrend so we did 35 billion 2014 a thirty five point six billion 2015 is past year
They did thirty six point five billion dollars guys in 2016 so good trending revenues there for this company now unfortunately the net incomes going the other way so two point eight billion dollars 2014 net income two point 1 billion dollars 2015 one point eight billion dollars is past year why is that that’s a great question like why you are your revenues going
Up but get your net income is going down substantially like that’s another great company looking to do like why the heck is that it doesn’t make any sense right usually speak generally speaking if your revenues going up your net income should be going up guys especially with a big company like that so something definitely to look into another airline stock is on
You notice the second airline stock american airlines this company has a twelve t currently very low for today’s market now their revenues are pretty consistent forty two billion 2014 then it dropped down a forty billion in 2015 they did another forty billion in this past year so pretty consistent net incomes all over the place so two point eight billion dollars
In 2014 then they jumped all the way up to seven point six billion dollars 2015 then drop the whole way down there two point six billion dollars on this past year so in from two billion all the way up to seven billion always on a two billion again so a net income all over the place with that stock gm once again another automaker you learn you’re seeing a few trends
Here guys insurance companies automotive and airlines are you know very consistently in this will ten undervalued stocks right so gm this company has a p ratio currently on the trailing 12 months of 505 are you kidding me how low can you go my goodness gracious so income as far as net income going very well or excuse me as far as income as far as a reference here
Goes it’s going very well right 155 billion shows a 14 they do drop down a bit in 2015 to 152 billion but then this past year they did a hundred and sixty six so you look at that you say revenue is trending very nicely now as for is the net income this is also trending pretty good right they did three point nine billion dollars net income in 2014 2015 nine point
Six billion is past year they do nine point four billion dollars in net income so that’s kind of tops off our list there so you see some airlines not a lot of people believe in the airline’s mainly because they’re worried what a purses go up then your your earnings are probably gonna draw automakers is like what are you doing with the electric wave come in castles
About to ramp up production big-time starting 2018 how’s it going to affect the automakers you know what happens if a recession is to happen at the same time as well the move to electric cars happen like how would ford and gm in all the automakers pretty much be affected by this it would be horrible because that would be a double whammy at the same time right so
Big questions around those we saw goldman sachs on we saw some insurance companies you know insurance is always one of those things you know depending on a lot of times it depends on political regimes like what happens if you know with these insurance companies do they do they prosper or do they falter so some of those kinds of things guys so hope you enjoy this
Thing ten undervalue stocks let me know if you believe in any of these ten if you do why do you believe in any of these ten guys i would love to hear from you and that that comment section today if you just came across this chill you may want to subscribe we talk personal finance on the channel we talk entrepreneurship i’m an actual business owner and give away
So many business tips we talk stock market investing more than anything my book my stock market book is it linked in a description it has all my strategy in there thank you for watching guys and have a great day you
Transcribed from video
10 Undervalued Stocks By Financial Education