Using the TipRanks Stock Screener Tool, we identified three large-cap companies that have low Price-to-Earnings (P/E) ratios and hold a Strong Buy consensus rating. Each stock also presents an impressive >30% upside potential within the next year, making them compelling investment choices.
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Investing in low P/E stocks offers key advantages as these shares trade at lower prices relative to their earnings, so you pay less for each dollar of profit. This built-in margin of safety helps cushion against market downturns and potential losses. Although some investors chase high P/E stocks for explosive growth, historical data reveals that low P/E options often deliver superior returns with less risk. They typically provide higher dividends, stem from mature and stable companies, grow steadily, and show reduced price swings.
Here Are This Week’s Low P/E Stocks
Uber Technologies (UBER) – Uber stock has a P/E ratio of 10.2x, about 59% lower than its sector median. On TipRanks, the average Uber price target of $115.92 implies 46.5% upside potential from current levels.
Uber benefits from powerful network effects fueled by its large active user base of riders, drivers, and merchants, creating a high barrier to entry for competitors. Beyond ride-hailing, the company has diversified into food delivery, freight, insurance, and autonomous vehicle partnerships, unlocking new revenue streams. With $187 billion in trailing 12-month gross bookings and 189 million monthly active users (MAUs), Uber retains substantial growth potential through higher usage and geographic expansion.
Rithm Capital (RITM) – RITM has a P/E ratio of 7.6x, significantly lower than the real estate investment trust (REIT) sector average. On TipRanks, the average Rithm Capital price target of $14.60 implies 31% upside potential from current levels.
Rithm Capital Corp. offers a diversified business model with a focus on REITs and as a global asset manager in areas such as credit and financial services. Today, KBW analyst Bose George maintained a Buy rating on the stock with a price target of $14 per share. The company offers an above-industry-average dividend yield of 8.97%, making it an attractive dividend stock.
Copa Holdings (CPA) – CPA has a P/E ratio of 7.3x, about 70% lower than its sector median and is also lower than its own historical average of 8.7x. On TipRanks, the average Copa Holdings price target of $157 implies 32.7% upside potential from current levels.
Copa Holdings is a Panama-based airline holding company, offering passenger and cargo air transport. In Q3FY25, it reported an 18.7% year-over-year net profit rise to $173.4 million, record 88% load factor, 5.8% capacity growth, higher RASM, lower CASM, and fleet expansion. Currently, COPA carries an above industry-average-dividend yield of 5.44%, paying $1.61 in quarterly dividends.
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.