Mar 18, 2016

Posted by in Stock Reports | 0 Comments

Discounted Stocks Worth Considering Right Now: Gilead Sciences Inc (NASDAQ:GILD), U.S. Bancorp (NYSE:USB), Santander Consumer USA Holdings Inc (NYSE:SC)

Discounted Stocks Worth Considering Right Now: Gilead Sciences Inc (NASDAQ:GILD), U.S. Bancorp (NYSE:USB), Santander Consumer USA Holdings Inc (NYSE:SC)

Unless you’re fishing for catfish, bottom fishing can sometimes be a bad idea. It is sometimes easy to convince oneself that buying a stock at the 52-week low is not a risky proposition because of that stock’s low price relative to past earnings, dividend yield, or some other metric of value. But in reality, buying a down-trending stock is always risky, as you are betting against the market itself.

In order to profit from such a strategy, you need to be right about two things. First, you need to be sure that the stock’s downward trend will end. Secondly, you need to be right about the timing of when the stock’s slide will end. Alternatively, you may be investing in a company due to one-time events that are negatively impacting earnings on a short-term basis and that do not change your long-term investing thesis.

One thing you can do if you decide to wade into the shallows of the 52-week low list is to find stocks with P/E ratios lower than 15.

Shares in Gilead Sciences Inc (NASDAQ:GILD) have by -11.10% year to date and are now trading 9.86% above their 52-week low, at a price of $89.53. It has shown a growth of -0.83% in the past session on when approximately 10.55 million shares were traded, against the average daily trading volume of 12.97 million. The stock failed to get pushed above the $90.37 barrier, the intraday high. Analysts have a consensus target price of $115.85 in the 12-month period. The TTM P/E ratio as of the recent close now stands at approximately 7.51.

U.S. Bancorp (NYSE:USB) currently trades at $40.69 which is only about 9.77% higher than the 52-week low of $46.26. The trading volume at ready counter moved to 6..82 million shares as compared to 8.42 million shares average traded volume. The company has a low P/E ratio of 12.86. The stock failed to get pushed above the $40.78 barrier, the intraday high, after opening at $40.38. Analysts have a consensus target price of $45.48 in the 12-month period. Its market capitalization has now reached to $70.20 billion.

Santander Consumer USA Holdings Inc (NYSE:SC) is now 7.49% above its 52-week low level. The share price was up +2.00% from the previous closing rate after touching an intraday high of $9.40. The stock’s low point in its 52 week range is $8.54 per share, with $26.83 as the 52 week high point — that compares with a last trade of $9.18. Comparing the most recent share price to the 200 day moving average ($16.17) can also be a useful technical analysis technique. Trading volume was at 6.70 million shares versus an average volume of 2.95 million shares. The firm has a PE ratio of 3.80 times earnings.

 

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