The 10 Cheapest Large-Cap Stocks This Week

This week’s Acquirer’s Multiple® Large-Cap screen highlights attractive valuations across energy, financials, materials, healthcare, technology and media.

Energy remains particularly prominent, accounting for four of the 10 cheapest stocks. However, Synchrony Financial (SYF) remains the cheapest company overall, trading at an Acquirer’s Multiple of just 2.4x.

The Acquirer’s Multiple® compares enterprise value with operating earnings.

Here are the 10 cheapest large-cap stocks this week:

1. Synchrony Financial (SYF) — 2.4x

Synchrony remains the cheapest stock in this week’s screen. The specialty-finance company also has a 40.9% free-cash-flow yield and 15.3% shareholder yield.

2. Equinor (EQNR) — 3.3x

Norwegian energy producer Equinor ranks second, with a 9.5% free-cash-flow yield, 9.1% shareholder yield and 3.7% dividend yield.

3. Petrobras (PBR) — 6.0x

Petrobras trades at 6.0x, with an 11.7% free-cash-flow yield and 4.7% dividend yield. Investors must also consider its exposure to commodity prices and Brazilian government policy.

4. CF Industries (CF) — 6.8x

CF Industries is the leading materials company in this week’s top 10. The fertiliser producer has a 10.8% free-cash-flow yield, 7.2% shareholder yield and a five-year average return on assets of 21%.

5. YPF (YPF) — 7.1x

Argentine energy producer YPF trades at 7.1x, with a 9.3% free-cash-flow yield. Its valuation should be considered alongside the political, economic and currency risks associated with investing in Argentina.

6. BP (BP) — 7.3x

BP offers a 13.4% free-cash-flow yield, 7.9% shareholder yield and 4.3% dividend yield. Commodity prices, capital allocation and the company’s energy-transition strategy remain important considerations.

7. Novo Nordisk (NVO) — 7.9x

Novo Nordisk brings healthcare exposure to the top 10. The biopharmaceutical company has a 4.5% free-cash-flow yield, 5.5% shareholder yield and a five-year average return on assets of 26%.

8. Cognizant Technology Solutions (CTSH) — 8.0x

Cognizant provides exposure to technology consulting services. It has a 9.7% free-cash-flow yield, 11.2% shareholder yield and a five-year average return on assets of 17%.

9. Sanofi (SNY) — 8.0x

Sanofi is the second healthcare company in this week’s top 10. The pharmaceutical company has a 10.3% free-cash-flow yield, 8.9% shareholder yield and 6.3% dividend yield.

10. Fox Corporation (FOXA) — 8.1x

Fox Corporation enters the top 10, bringing media exposure to the cheapest end of the screen. The company has a 5.9% free-cash-flow yield, 9.2% shareholder yield and 1.2% dividend yield. Its 8.1% buyback yield also highlights the contribution of share repurchases to shareholder returns.

Bottom Line

Energy remains well represented at the cheapest end of the large-cap screen, accounting for four of the 10 cheapest stocks. However, this week’s top 10 also includes companies across financials, materials, healthcare, technology and media.

Synchrony Financial remains the standout on valuation at just 2.4x, while CF Industries moves up to fourth place at 6.8x. Fox Corporation enters the top 10, replacing Shell, which now sits just outside the group at 8.2x.

The screen continues to provide value investors with a diversified starting point for further research, although low valuations should always be assessed alongside business quality, financial strength and industry-specific risks.