2 Rock-Solid Chip Stocks With Low P/Es
Value investors are always on the lookout for stocks that are trading below their intrinsic values. These stocks generally have low price-to-earnings ratios, low price-to-book ratios, and low price-earnings-growth (PEG) ratios. The recent market sell-off dragged many stocks lower, making them attractive at current valuations.
While the forward P/E ratio for the information technology sector as a whole now stands at 20, according to a FactSet report, there are several tech stocks that are trading at lower P/Es than that. Here we look at two such stocks that I feel could gain significantly on a market rebound.
Chip-manufacturer Broadcom (NASDAQ: AVGO) has a forward P/E multiple of 11.5 and an estimated 5-year PEG ratio of 0.87, making it one of the top tech stocks for value investors to consider today. And based on its forward dividend yield of 5.1%, the semiconductor heavyweight should be on the radar of income investors too.
Source Fool.com
