Potential Recession Discount (2/2)
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Today we will look at another 10 stocks that would be trading at a significant discount if their P/E ratio fell by 30% during a recession early next year. We will do this by comparing the P/E of the company (down 30% from its current value) to the 5-year forward P/E to see what discount the company would be trading at. Onward and Upward, |
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 Stock to Watch: CF Industries Holdings (NYSE: CF) - The company is currently trading at a 13.1 P/E ratio.
- During a recession, its P/E could drop by 30% to 9.2.
- The five-year average forward P/E for the company is 20.9.
- The stock would be trading at a 56% discount during a recession.
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 Stock to Watch: Alaska Air Group (NYSE: ALK) - The company is currently trading at an 18.4 P/E ratio.
- During a recession, its P/E could drop by 30% to 12.9.
- The five-year average forward P/E for the company is 28.3.
- The stock would be trading at a 55% discount during a recession.
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 Stock to Watch: Devon Energy Corporation (NYSE: DVN) - The company is currently trading at a 14.6 P/E ratio.
- During a recession, its P/E could drop by 30% to 10.2.
- The five-year average forward P/E for the company is 21.8.
- The stock would be trading at a 53% discount during a recession.
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 Stock to Watch: Mosaic Company (NYSE: MOS) - The company is currently trading at a 9.7 P/E ratio.
- During a recession, its P/E could drop by 30% to 6.8.
- The five-year average forward P/E for the company is 13.8.
- The stock would be trading at a 51% discount during a recession.
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 Stock to Watch: Chevron Corporation (NYSE: CVX) - The company is currently trading at a 20.6 P/E ratio.
- During a recession, its P/E could drop by 30% to 14.4.
- The five-year average forward P/E for the company is 25.3.
- The stock would be trading at a 43% discount during a recession.
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 Stock to Watch: Exxon Mobil (NYSE: XOM) - The company is currently trading at an 18.3 P/E ratio.
- During a recession, its P/E could drop by 30% to 12.8.
- The five-year average forward P/E for the company is 23.3.
- The stock would be trading at a 45% discount during a recession.
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 Stock to Watch: EOG Resources (NYSE: EOG) - The company is currently trading at a 16.9 P/E ratio.
- During a recession, its P/E could drop by 30% to 11.8.
- The five-year average forward P/E for the company is 20.7.
- The stock would be trading at a 43% discount during a recession.
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 Stock to Watch: Occidental Petroleum Corporation (NYSE: OXY) - The company is currently trading at a 16.6 P/E ratio.
- During a recession, its P/E could drop by 30% to 11.6.
- The five-year average forward P/E for the company is 19.8.
- The stock would be trading at a 42% discount during a recession.
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 Stock to Watch: Host Hotels & Resorts (NYSE: HST) - The company is currently trading at a 38.7 P/E ratio.
- During a recession, its P/E could drop by 30% to 27.1
- The five-year average forward P/E for the company is 45.7.
- The stock would be trading at a 41% discount during a recession.
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 Stock to Watch: Albermarle Corporation (NYSE: ALB) - The company is currently trading at a 19.4 P/E ratio.
- During a recession, its P/E could drop by 30% to 13.6.
- The five-year average forward P/E for the company is 22.8.
- The stock would be trading at a 40% discount during a recession.
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 |  | Liam Gill is a founder, lawyer and investor.
He previously founded Fumarii Technologies, which became a top 20 ranked cloud computing service (Yahoo Finance! 2019) valued at over $30M. He holds an LLB Laws (UK), MSc Management and Master of Laws and currently practices law in Vancouver, Canada.
|   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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