List of 10 Most Inexpensive Emerging Market Stocks Are Dominated By These Three Countries

The 10 most inexpensive emerging market stocks

Emerging market investors are constantly on the look-out for bargain opportunities. Stocks that qualify as good investment bets, but are currently trading at a price that makes them attractive when viewed in conjunction with the earnings delivered on those stocks. We, looked at the price-to-earnings ratios of all equities included with the developing markets (EEM) (VWO) universe to generate a shortlist the 10 most inexpensive emerging market stocks. These are:

In the US, the iShares MSCI Emerging Markets ETF (EEM) is one of the oldest products on the market offering exposure to stock markets of emerging economies. The ETF provides easy-access to 800+ stocks as it tracks the MSCI Emerging Markets Index and is composed of a good mix of large and mid-capitalization emerging market equities. From within the EEM’s portfolio universe of 853 stocks currently (as of August 15), we filtered the top 10 stocks which sport the lowest P/E ratios (table above). Stocks from Russia (RSX), Taiwan (EWT), and China (FXI) (YINN) dominate the list.

Engro Corporation Limited

Engro Corporation manufactures and markets fertilizers and plastics, generates electricity, and processes food. Listed on the Pakistan Stock Exchange under the symbol ENGRO, the stock is trading at a P/E ratio of just 2.29. The stock was down 5.4% YTD (as of August 15). Bloomberg data suggests estimated P/E for the stock to reach 13.30 by December 2017 (forward P/E). Dividend yield for the stock is a good 8.03%. 64.3% of analysts that reviewed the stock maintain a BUY recommendation on the stock currently.

PJSC Gazprom (OGZPY)

Public Joint Stock Company Gazprom trades on the NYSE’s OTC market under the symbol OGZPY. The company is Russia’s oil & gas giant, a major contributor to exports and revenues of the economy. Gazprom operates gas pipeline systems, produces and explores gas, and transports high-pressure gas in Russia and Europe (VGK). Down by 24.2% YTD (as of August 15), the ADR is currently trading at a P/E ratio of 2.86. However, estimated P/E for the stock is expected to reach 4.18 by December 2017 (forward P/E). Dividend yield for the stock stands at a good 6.94%.

AU Optronics Corp. (AUO)

AU Optronics Corp. manufactures and markets thin film transistor –liquid crystal displays (TFT-LCDs) and plasma display panels (PDPs). Based in Taiwan, the company has its ADR trading on the NYSE under the symbol AUO. The ADR is currently trading at a P/E ratio of 3.43. The stock is up 9.04% YTD as of August 15). Bloomberg data suggests estimated P/E for the stock to stay at 3.43 until December 2017 (forward P/E). The stock has a dividend yield of 4.78%.

Innolux Corporation (3481.TW)

Taiwan’s Innolux Corporation primarily manufactures TFT-LCD, LCD models, and LCD monitors. Listed on the Taiwan Stock Exchange under the symbol 3481, the stock is trading at a P/E ratio of just 3.65. The stock is up 19.8% YTD as of August 15. Bloomberg data suggests estimated P/E for the stock to lower to 3.60 by December 2017 (forward P/E). Dividend yield for the stock is a meager 0.72%. Moreover, 52.4% of analysts that reviewed the stock maintain a HOLD recommendation on the stock currently. Another 33.3% recommend a SELL, with just 14.3% recommending a BUY.

Chongquin Changan Automobile Company Limited (200625.SZ)

Chongquin Changan Automobile Company Limited develops, manufactures, and markets mini cars, mini sedans, full-size sedans, and engines in China (FXI) (YINN) (MCHI). The Chinese automaker currently operates joint ventures with Japan’s Suzuki Motor (SZKMY) (SZKMF) and Mazda Motor (MZDAY) (MZDAF) as well as Ford Motor (F) of the U.S. The company will soon begin manufacturing the next-generation Focus compact car in China and exporting it to North America in 2019. (Read, Ford Says Goodbye To Mexico, And Hello To China For Small-Car Manufacturing)

Listed on the Shenzhen Stock Exchange under the symbol 200625, the Class B shares of the company are trading at a P/E ratio of 4.15 currently. The stock was down 7.12% YTD (as of August 15). Bloomberg data suggests estimated P/E for the stock to lower to 4.11 by December 2017 (forward P/E). Dividend yield for the stock is a good 7.07%. 83.3% of analysts that reviewed the stock maintain a BUY recommendation currently.

GS Holdings (078930.KS)

South Korea based GS Holdings operates a stable of companies that are engaged in the energy, construction, and retail business. Listed on the Korea Stock Exchange under the symbol 078930, the stock is trading at a P/E ratio of just 4.30. The stock is up 24.2% YTD (as of August 15). Bloomberg data suggests estimated P/E for the stock to reach 6.40 by December 2017 (forward P/E). Dividend yield for the stock is 2.38%. 66.7% of analysts that reviewed the stock maintain a BUY recommendation on the stock currently.

Türkiye Vakiflar Bankasi Türk Anonim Ortakligi (VAKBN.IS)

Turkiye Vakiflar Bankasi T.A.O. attracts deposits and offers corporate, retail and investment banking services in Turkey. Listed on the Istanbul Stock Exchange under the symbol VAKBN, the stock is trading at a P/E ratio of 4.58. For the year so far (as of August 15), the stock is up a whopping 62.53%. However, Bloomberg data suggests estimated P/E for the stock to rise further and reach 5.32 by December 2017 (forward P/E). Dividend yield for the stock is a meager 0.68%. 54.2% of analysts that reviewed the stock maintain a HOLD recommendation on the stock currently; 41.7% maintain a BUY.

China CITIC Bank Corporation Limited (CHBJF)

China CITIC Bank Corporation Limited provides a full range of commercial banking services in China. Listed on the NYSE’s OTC market under the symbol CHBJF, the stock is trading at a P/E ratio of 5. The stock was down 10.3% YTD (as of August 15). Bloomberg data suggests estimated P/E for the stock to lower to 4.78 by December 2017 (forward P/E). Dividend yield for the stock is at 5.17% currently. 40.9% of analysts that reviewed the stock recommend a BUY; 36.4% recommending HOLD; while 22.7% recommending investors to SELL the stock.

Rural Electrification Corporation Limited (RECLTD.BO)

Rural Electrification Corporation Limited operates as a financial firm in India. The company provides loan assistance to public and private entities for investments in power generation, transmission, distribution, and other system improvement schemes.  Listed on the Bombay Stock Exchange under the symbol RECLTD, the stock is trading at a P/E ratio of 5.11 currently. The stock is up 30.9% YTD (as of August 15). Forward P/E estimate for the stock was not available. Dividend yield for the stock is at 5.91%. 52.2% of analysts that reviewed the stock maintain a BUY recommendation on the stock, with another 30.4% recommending a SELL.

INTER RAO UES PJSC (IRAO.ME)

RAO UES PJSC is a diversified energy holdings company in Russia. Its service offerings include electric power and heat generation, retail energy sales, international power trading, and management of distribution grids outside of Russia. Listed on the Micex Stock Exchange under the symbol IRAO, the stock is trading at a P/E ratio of 5.31. The stock hasn’t moved much; up 0.12% YTD (as of August 15). Bloomberg data suggests estimated P/E for the stock to reach 7.09 by December 2017 (forward P/E). Dividend yield for the stock is a decent 3.81%. 71.4% of analysts that reviewed the stock maintain a BUY recommendation on the stock currently.