Using the TipRanks Stock Screener Tool, we identified three large-cap companies characterized by low Price-to-Earnings (P/E) ratios, a Strong Buy consensus from analysts, and a TipRanks Smart Score of Eight, Nine, or a Perfect 10, reflecting a strong likelihood to outperform market expectations. These companies also present more than 20% upside potential over the next twelve months, making them compelling investment prospects.
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Investing in low P/E stocks is beneficial because these stocks are undervalued compared to their earnings, meaning you pay less for each unit of profit. This offers a margin of safety, reducing potential losses if the market drops. Investors often prefer stocks with growth potential even if their P/E ratio is higher, betting on future earnings increases. However, low P/E stocks have historically provided better returns and lower risk than high P/E stocks. Such stocks usually pay higher dividends, have steady and reliable businesses, grow slowly but consistently, and have less volatility.
Here Are This Week’s Low P/E Stocks
1. Pinterest (PINS) – Social media platform Pinterest has a P/E ratio of 8.65x, significantly lower than the sector average of 17.22x. On TipRanks, the average Pinterest price target of $39.80 implies 59.5% upside potential from current levels.
Pinterest has shown strong revenue growth, around 17% year-over-year in recent quarters, and expanded its user base to over 570 million global monthly active users. This growth is supported by strategic partnerships with Amazon (AMZN) and Google (GOOGL) that boost advertising revenue. Although Pinterest has recently missed some earnings expectations due to tariff-related challenges and advertising pricing pressures, the company maintains a strong cash balance and actively repurchases its shares. These factors contribute to the company’s financial stability and investor confidence.
2. Uber Technologies (UBER) – Ride-hailing service provider Uber has a P/E ratio of 10.76x, about 55% lower than its sector median. On TipRanks, the average Uber price target of $115.96 implies 38.2% upside potential from current levels.
Uber benefits from a powerful network effect with a large active user base of riders, drivers, and merchants, making it difficult for new entrants to disrupt. Beyond ride-hailing, Uber has expanded into food delivery, freight, insurance, and autonomous vehicle partnerships, diversifying its business and opening new growth paths. With $187 billion in annual bookings and 189 million monthly users, Uber still has significant growth potential by increasing usage and expanding its customer base.
3. VICI Properties (VICI) – Real-estate investment trust (REIT) VICI has a P/E ratio of 10.96x, considerably lower than its sector median of 29.87x. On TipRanks, the average VICI price target of $35.60 implies 24.2% upside potential from current levels.
VICI Properties owns a large and diverse portfolio of gaming, hospitality, and entertainment places, mostly in the U.S. and Canada. They lease these properties with long-term contracts averaging nearly 40 years that guarantee steady rent payments. About 42% of their rent increases with inflation, which helps their income grow over time. They lease to well-known, reliable operators and have strong financial health with good credit ratings and enough cash reserves. VICI also offers an attractive, above-industry average dividend yield of 6.06%, with a consistent track record of annual dividend increases since 2018. All these factors make VICI Properties a stable and trustworthy investment.
To find more stocks like these, explore TipRanks’ Stock Screener Tool, which provides an updated list of stocks that can be filtered and scanned using various parameters.