After a year of solid gains on the S&P 500, one would expect stocks with strong fundamentals to be a thing of the past. Yet for those willing to search in the nooks and crannies, there are still companies that shine brightly in the valuation sphere.

How To Make Your First $1 Million

Here are five such issues that are cheap by a number of widely respected fundamental measures.

France Telecom SA (NYSE:FTE) appears to be a stock that's got it all. With a market cap of nearly $54 billion, a one year trailing P/E ratio of 9 and a dividend yield of 6.10%, FTE looks like a value investing juggernaut. Add to this a steady dividend over the last five years and one is hard-pressed to find a downside. Moreover, price-to-sales on the shares is a mere 0.91 while price-to-book comes in at just 1.37.

Down Against its Peers
If there is a worry, it comes in the shape of the stock's performance over the last twelve months, when it registered a 18.5% loss against a 6.8% gain in the global telecom sector as measured by the ishares S&P Global Telecommunications Sector Index Fund (NYSE:IXP).

Comcast Corporation (Nasdaq:CMCSA) is a provider of internet, video and telephone cable services across the United States. The company has a market cap of $63 billion, pays an annual dividend of 1.7% and trades with a P/E of 18. CMCSA trades above the company's breakup value, with a price/book of 145 and price-to-sales of 1.70. (Learn more about breakup value in Use Breakup Value To Find Undervalued Companies.)

Chinese Energy Behemoth
China Petroleum & Chemical Corp. (NYSE:SNP), better known as "Sinopec," is involved in all aspects of exploration and production of Chinese oil and gas as well as the production of numerous petrochemical products.

Sinopec has a very competitive P/E of 8.51 and the dividend yield is 2.10% per annum. Better still, the company's shares trade at a mere 0.30x sales.

National Grid Plc (NYSE:NGG) is a British based electric and gas utility that serves customers across the New England states. NGG has a dividend yield of 4.60% and trades with a P/E of 10.78 and a Price/Sales ratio of 1.32.

The Wrap
They exist: big cap names with impressive fundamentals, even after a full year's worth of gains. By most value investing parameters, the above four names qualify as worthy candidates for the buy list.

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Stock Analysis

    3 Resilient Oil Stocks for a Down Market

    Stuck on oil? Take a look at these six stocks—three that present risk vs. three that offer some resiliency.
  2. Economics

    Keep an Eye on These Emerging Economies

    Emerging markets have been hammered lately, but these three countries (and their large and young populations) are worth monitoring.
  3. Stock Analysis

    Is Pepsi (PEP) Still a Safe Bet?

    PepsiCo has long been known as one of the most resilient stocks throughout the broader market. Is this still the case today?
  4. Investing

    The ABCs of Bond ETF Distributions

    How do bond exchange traded fund (ETF) distributions work? It’s a question I get a lot. First, let’s explain what we mean by distributions.
  5. Investing Basics

    Top Tips for Diversifying with Exotic Currencies

    Is there an opportunity in exotic currencies right now, or are you safer sticking to the major ones?
  6. Mutual Funds & ETFs

    The 3 Biggest Mutual Fund Companies in the US

    Compare and contrast the rise of America's big three institutional asset managers: BlackRock Funds, The Vanguard Group and State Street Global Advisors.
  7. Stock Analysis

    3 Stocks that Are Top Bets for Retirement

    These three stocks are resilient, fundamentally sound and also pay generous dividends.
  8. Professionals

    5 Top-Rated Funds for Your Retirement Portfolio

    Mutual funds are a good choice for emotional investors. Here are five popular funds to consider.
  9. Investing News

    Are Stocks Cheap Now? Nope. And Here's Why

    Are stocks cheap right now? Be wary of those who are telling you what you want to hear. Here's why.
  10. Investing News

    4 Value Stocks Worth Your Immediate Attention

    Here are four stocks that offer good value and will likely outperform the majority of stocks throughout the broader market over the next several years.
  1. Can mutual funds invest in IPOs?

    Mutual funds can invest in initial public offerings (IPOS). However, most mutual funds have bylaws that prevent them from ... Read Full Answer >>
  2. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  3. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  4. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  5. Does index trading increase market vulnerability?

    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
  6. What does a high turnover ratio signify for an investment fund?

    If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!