Summary
Should the Financials “losers” of last week be given a second chance?
Large-cap financials companies continue to march forward, as the sector finished higher last week.
Does NTIOF represent strong value in the oil-driven, beleaguered Canadian economy? We think so.
Welcome to the Financials sector's third edition of "Buy on Weakness?", a series of articles that sifts through the underperformers of the week to find potential investment opportunities in the large-cap Financials world. The idea is to help investors, particularly those focused on value plays, unearth ideas for the coming week.
Credit: DM Martins Research montage using company logos
The table below highlights the top 20 Financials companies - worth $10 billion or more in total equity value - that have performed the poorest in the previous five trading days.
Source: DM Martins Research, using market data compiled from Zacks
Let's take a closer look at some metrics.
Diving deeper into the data
While last week saw many winners in financials as earnings releases poured in, there were also a fair share of decliners. These top 20 financials losers have a low median forward P/E of 10.9x, compared to the S&P 500's median trailing P/E of 14.6x and the overall financials sector's 15.8x. This week's top 20 group is expected to grow EPS in 2017 by 5.3%, and the companies generate a solid median dividend yield of 4.3% (19 of the 20 companies are dividend-payers).
The table below highlights, in green font, the three best-positioned financials companies in each of the following categories: projected EPS growth, dividend yield, forward P/E and forward PEG (P/E divided by percentage-point EPS growth).
