The Standard & Poors 500 has long stood as one of the more reliable measures for the equities market out there. Every company in the index is either over $1 billion in market cap save two, which are both over $900 million. As such, the companies included on the index can carry with them a certain degree of name recognition and prestige.
However, this prestige can often mean that the stocks on the S&P 500 are pricey buys, with greater interest from more buyers coming as a part of the visibility and increased exposure of being listed in the index. However, that’s not to say that there aren’t companies that, based on the ratio of their price to assets, earnings, and growth projections, are currently available at bargain prices.
So, the following seven stocks are all listed on the S&P 500 but, despite this, still have price valuations that point towards the companies currently being undervalued in the eyes of investors. While a good price is never a guarantee that a stock is a good buy, these companies all have ratios of price to earnings, sales, book value, and projected earnings growth that should give any investor reason to at least take a second look.
Assurant (AIZ)
Market Cap: $3.49 billion P/E: 7.13 PEG: 0.69 P/S: 0.42 P/B: 0.70
Assurant is an insurance provider that specializes in health and home owner’s insurance.
Xerox (XRX)
Market Cap: $11.08 billion P/E: 9.35 PEG: 0.64 P/S: 0.49 P/B: 0.91
This well-known maker of printers and copiers has one of the more recognizable brands in the country.
Valero Energy (VLO)
Market Cap: $15.54 billion P/E: 7.63 PEG: 0.79 P/S: 0.12 P/B: 0.95
Valero is an independent refiner and marketer of petroleum products.
WellPoint (WLP)
Market Cap: $22.54 billion P/E: 9.36 PEG: 0.91 P/S: 0.37 P/B: 0.98
WellPoint is a health insurance company that serves some 34.2 million medical members and 65.3 million individual members throughout the United States.
Prudential Financial (PRU)
Market Cap: $29.94 billion P/E: 8.68 PEG: 0.81 P/S: 0.61 P/B: 0.80
Prudential is a financial services company with operations in Europe, Latin America, and Asia as well as the United States.
Metlife (MET)
Market Cap: $40.70 billion P/E: 6.12 PEG: 0.65 P/S: 0.58 P/B: 0.68
Metlife provides insurance and annuities services to over 90 million customers in over 60 different countries.
American International Group (AIG)
Market Cap: $53.17 billion P/E: 3.55 PEG: 0.37 P/S: 0.83 P/B: 0.51
It’s America’s favorite company! One might argue that, since everyone in America already invested in AIG in a way, it might be worth giving the company a chance to make some of that money back for you.
All data from finviz.com
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