20 Stocks with the Lowest PE Ratio

Fahad Saleem
8 min read

In this article, we will take a look at the 20 stocks with the lowest PE ratio. To see more such companies, go directly to 5 Stocks with the Lowest PE Ratio.

The US stock market was starting to look beyond the confusions around rate hikes as more and more data shows consumer spending in the country remains strong. In October, Bloomberg reported that several analysts are increasing their projections for growth of US economy in 2024 amid strong consumer spending and labor market.  The report quoted James Knightley, chief international economist at ING, who said that the US economy had a “stellar” summer, helped by robust consumer spending.

But that does not mean analysts are totally ruling out any chances of recession. The same Bloomberg report also quoted Kathy Bostjancic, chief economist at Nationwide Life Insurance Co., who said that despite strong economic numbers, he was expecting a “mild recession” in 2024.

“The jump in yields that underpin borrow rates will engineer a slowing in employment and income growth that leads to a pull back in consumer spending,” Bostjancic had reportedly said.

Some bears believe we might be looking at the tip of an iceberg that will become visible in the next year. They believe the effects of rising interest rates and persistent inflation are beginning to show their signs as consumer savings amassed during the pandemic days begin to dry up. Wall Street Journal in a latest report talked in detail about how consumers in the US are preferring low-cost products instead of buying expensive and branded items. They are preferring items with lighter price tags from Uniqlo and Target instead of buying from expensive brands like Lululemon and other high-end names, according to the report. The WSJ report also quoted a survey conducted by research company Morning Consult, which said that 72% of the consumers in the US plan to look for less expensive alternatives this holiday season due to inflation. The survey included 2,200 US adults. While the latest inflation report has calmed investors' nerves and quelled some recession calls, there are clear signs that inflation had a direct effect on consumer wallets, albeit a mild one. Investors would be keenly looking at quarterly earnings reports and sales performance of major retailers to gauge the state of the US consumer.

Stocks with the Lowest PE Ratio

Daily newspaper economy stock market chart

Our Methodology

For this article we used a stock screener to identify stocks with PE ratios above 0 but lower than 15. To remove penny stocks and small-cap companies that are prone to high volatility, we only selected companies with market caps over $2 billion.

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