Analysis: BMO Capital Markets suggests value stocks with solid fundamentals and dividends for passive income.

From Nasdaq: 2024-06-27 21:07:30

The S&P 500 Index is up 14.9% YTD, driven by tech stocks like Nvidia soaring 150.4%. A possible rotation out of tech leaders may put value stocks in the spotlight as global central banks ease up on monetary policies. BMO Capital Markets suggests stocks with NTM P/E multiples under 15x for solid fundamentals and dividends.

American International Group (AIG) is a global insurer offering a 2.15% yield with a quarterly dividend of $0.40 per share. Strong Q1 2024 earnings beat estimates, with EPS of $1.77. AIG is valued attractively, with a forward P/E of 10.61. Currently trading at $74.84, analysts see an upside potential of 12.4% to $84.23.

Pfizer Inc. (PFE), known for its COVID-19 vaccine, has a 6.13% yield with a quarterly dividend of $0.42 per share. Q1 2024 earnings surpassed estimates, with EPS of $0.82. Analysts project EPS of $2.38 for fiscal year 2024, a 29.4% increase. The mean target price is $33.37, indicating a potential upside of 20%.

Schlumberger N.V. (SLB), a major energy services company, offers a 2.38% yield with a quarterly dividend of $0.28 per share. They recently acquired a majority stake in Aker Carbon Capture for $380 million. SLB’s Q1 2024 earnings beat estimates, with EPS of $0.75. Analysts project an EPS of $3.51 for fiscal year 2024, with a mean target price of $66.78, showing a potential upside of 42%.



Read more at Nasdaq: 3 Value Stocks to Buy and Hold for Passive Income