Over the past few weeks, investors have become acutely sensitive to Central Bank policy and stocks are feeling the effects, with the S&P 500 and the Dow both over 5 percent off of all-time highs reached in May. In such a climate, there are some options available to investors looking for stocks showing signs of growth potential despite the fact that they may be relatively undervalued.
The following stocks all hit 52-week highs on Wednesday, and were selected based on size (mid-cap or greater), a P/E ratio that is lower than the current S&P 500 average of 18.5, and positive performance in 2013. Furthermore, all of these stocks have an average analyst rating of “buy or better”:
U.S. Bancorp (USB) – The Midwestern bank has a market cap of $66.76 billion, and on Wednesday saw shares hit a 52-week high of $36.06 before dropping slightly to $35.93 by the end of trading. USB is up 13 percent year-to-date, and has a P/E ratio of 12.4.
PNC Financial Services Group Inc. (PNC) – The money center bank has a market cap of $38.49 billion, and shares closed Wednesday at $73.18 after hitting their 52-week high of $74.19 earlier in the day. PNC is up 27 percent in the calendar year, and has a P/E ratio of 13.
Time Warner Cable Inc. (TWC) – The cable television provider has a market cap of $30.58 billion, with shares at $103.64 as of Wednesday’s close, just shy of the $104.21 52-week high from earlier in the trading day. TWC is up 8 percent year to date, and has a P/E ratio of 4.15
BB&T Corporation (BBT) – the mid-Atlantic bank has a market cap of $23.73 billion, with shares trading at $33.88, just shy of their 52-week high of $34.37. BBT is up 19 percent in 2013, and has a P/E ratio of 14.18
Aetna Inc. (AET) – The health insurance provider has a market cap of $20.63 billion, with shares trading at $62.96 as of Wednesday’s close, slightly off from the $63.47 52-week high hit earlier in the day. AET is up 37 percent so far this year, and has a P/E ratio of 13.
East West Bancorp Inc. (EWBC) – The West-coast bank has a market cap of $3.71 billion, with shares trading at $26.93 as of Wednesday’s close, just slightly off their 52-week high of $27.28 reached earlier in the day. EWBC is up 27 percent year-to-date, and has a P/E ratio of 13.95.
Webster Financial Corp. (WBS) – The Northeastern bank has a market cap of $2.16 billion, with shares at $25.22 as of Wednesday’s close, just shy of a$25.50 52-week high from earlier in the trading day. WBS is up 24 percent on the year, and has a P/E ratio of 13.41.
Inergy, L.P. (NRGY) – The midstream oil and gas company has a market cap of $2.1 billion. Shares closed Wednesday at $15.96, slightly lower than the 52-week high of $16.69 from earlier in the day. NRGY is up 53 percent in 2013, and has a P/E ratio of 4.1.
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