3 Profitable Buy Ranked Stocks Selling on the Cheap Now

The S&P 500 had an awful day, heading down 3%.  There’s no telling how stocks are going to look from day to day.  However, it should be noted that stocks did rebound after they plunged 10% over four straight trading sessions last month. 
 
If you are hopeful in the prospect that we will emerge from the current slump that stocks are in, then some profitable companies may be the way to go right now, as this current slump presents a potential buying opportunity.
 
Below, we outline three companies with net profit margins over 20% whose shares are selling on the cheap right now.  They each trade at a forward PE under 10, and each of their price to book ratios are close to 1.  The relative strength index (RSI) of each of these companies is in the lower 30’s, which suggests that they are approaching oversold territory.
 
Goldman Sachs-GS
 
Goldman Sachs is a global investment banking firm which provides investing, consulting, and financing services across the globe.  Goldman Sachs is a Zacks Rank #2 (Buy).  It has a trailing twelve month net profit margin of 23%.  It has a forward PE of 9.02 and a PEG of 0.9.  A PEG under one suggests that there is value present.  GS has a low forward PE along with an exceptional PEG, which makes the deal even sweeter. 
 
The corporation trades at a price/book of 1.07.  It projects sales growth of 4.52% this year, while the industry as a whole is only expected to see sales rise 1.28%.  Goldman Sachs projected EPS growth is 22.51%.  The firm has beaten our earnings consensus in each of the last four quarters by a significant margin.  GS reports its earnings on 10/15/15.
 
Aercap Holdings-AER
 
Aercap is the largest aircraft leasing company in the world.  The company leases out aircraft, engines, and other parts.  It has a Zacks Rank #2 (Buy) and a net profit margin of 22%.  In the last 60 days, 12 analysts have revised their earnings estimates for this quarter.  Each of these analysts’ estimates were revised upwards.  The company trades at a forward PE of 7.05.  It also has a PEG of 0.72.  Aercap’s price to book is 1.06.
 
Sales are projected to grow by 41.38% this year.  AER projects EPS growth of 24% this year.  It’s worth noting that the corporation has current cash flow growth of 239.57%.  Investors get a nice ROE of 15.8%, which is great considering that the industry’s ROE as a whole is just 8.44%.  Aercap reports its earnings on 11/3/15.
 
Teekay Tankers-TNK
 
Teekay Tankers engages in the transportation of crude oil with its tanker fleet.  Teekay holds a Zacks Rank #2 (Buy).  It has a net profit margin of 32%.  This company looks very cheap as it trades at a forward PE of 4.04.  It also has an exceptional PEG of 0.62.  Its price to book is 1.03.  It’s worth noting that the corporation doles out a 2% dividend.
 
Teekay has incredible growth prospects.  The company’s EPS is projected to grow by 287.18% this year.  It also has current cash flow growth of 166.66%.  90 days ago, our EPS consensus estimated earnings of $0.15 for this quarter.  It has since upgraded and now our consensus estimates earnings of $0.35 per share.  The company has an impressive earnings yield of 24.75%.  TNK reports its earnings on 11/5/15.
 
The Zacks Rank is a truly marvelous trading tool.  Our ranking system has beaten the S&P 500, yielding an average return of 26% per year for the last 28 years!  Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>    

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
TEEKAY TANKERS (TNK): Free Stock Analysis Report
 
GOLDMAN SACHS (GS): Free Stock Analysis Report
 
AERCAP HLDGS NV (AER): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research