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Prudential Financial & Pfizer: Hidden Gems in a Richly Valued Market

Discover two promising stocks with low forward earnings multiples and attractive dividends, hiding in plain sight in a richly valued market.

In the right side there are people in the market, it's a sunny sky in the market.
In the right side there are people in the market, it's a sunny sky in the market.

Prudential Financial & Pfizer: Hidden Gems in a Richly Valued Market

Despite a richly valued stock market, some companies offer attractive investment opportunities. Prudential Financial (PRU) and Pfizer (PFE) are among them, boasting low forward earnings multiples and promising growth prospects.

Prudential Financial's forward earnings multiple stands at around 7.5, less than half of the S&P 500 financial sector's multiple. Its price-to-earnings-to-growth (PEG) ratio is a mere 0.58, suggesting optimism about its growth prospects. Meanwhile, Pfizer's forward dividend yield tops 6.3%, with management committed to maintaining and growing the dividend. Pfizer recently secured a deal with the White House exempting it from pharmaceutical tariffs for the next three years, further boosting its prospects.

Verizon Communications (VZ) shares trade at around nine times forward earnings, lower than its major rivals AT&T and T-Mobile US. The company offers a lofty dividend yield of 6.3% and has increased its dividend for 19 consecutive years. Despite these attractive features, The Motley Fool analysts did not include Pfizer in their top-10 recommended stocks for purchase, indicating that opportunities may lie beyond their radar.

While the stock market remains richly valued, investors can find bargains in companies like Prudential Financial and Pfizer. Their low forward earnings multiples and attractive dividends make them compelling options for those seeking value in the current market.

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