Stocks to Watch: Ford, EQT, and more...

Potential Recession Discount

Inside.com Part of   Network December 10, 2022

This weekend we will be looking at 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 five-year forward P/E to see what discount the company would be trading at. We will look at 10 stocks today and 10 stocks tomorrow that present the biggest discounts in this scenario.  Onward and Upward, Liam

Stock to Watch: Ford Motor Company (NYSE: F)  The company is currently trading at a 15.1 P/E ratio. During a recession, its P/E could drop by 30% to 10.6.  The five-year average forward P/E for the company is 48.7.  The stock would be trading at a 78% discount during a recession.

Stock to Watch: EQT Corporation (NYSE: EQT) The company is currently trading at an 8.1 P/E ratio. During a recession, its P/E could drop by 30% to 5.7.  The five-year average forward P/E for the company is 25.2.  The stock would be trading at a 77% discount during a recession.

Stock to Watch: Marathon Petroleum Corporation (NYSE: MPC) The company is currently trading at a 14.7 P/E ratio. During a recession, its P/E could drop by 30% to 10.3.  The five-year average forward P/E for the company is 43.2.  The stock would be trading at a 76% discount during a recession.

Stock to Watch: Marathon Oil Corporation (NYSE: MRO) The company is currently trading at a 12.4 P/E ratio. During a recession, its P/E could drop by 30% to 8.7.  The five-year average forward P/E for the company is 28.3.  The stock would be trading at a 69% discount during a recession.

Stock to Watch: ConocoPhillips (NYSE: COP) The company is currently trading at a 17.6 P/E ratio. During a recession, its P/E could drop by 30% to 12.3.  The five-year average forward P/E for the company is 39.1.  The stock would be trading at a 69% discount during a recession.

Stock to Watch: Delta Air Lines Inc. (NYSE: DAL) The company is currently trading at a 15 P/E ratio. During a recession, its P/E could drop by 30% to 10.5.  The five-year average forward P/E for the company is 32.1.  The stock would be trading at a 67% discount during a recession.

Stock to Watch: Expedia Group (NASDAQ: EXPE) The company is currently trading at a 20.1 P/E ratio. During a recession, its P/E could drop by 30% to 14.1.  The five-year average forward P/E for the company is 41.7. The stock would be trading at a 66% discount during a recession.

Stock to Watch: Valero Energy Corporation (NYSE: VLO) The company is currently trading at a 13.7 P/E ratio. During a recession, its P/E could drop by 30% to 9.6.  The five-year average forward P/E for the company is 25.6.  The stock would be trading at a 62% discount during a recession.

Stock to Watch: Charter Communications (NASDAQ: CHTR) The company is currently trading at a 21.1 P/E ratio. During a recession, its P/E could drop by 30% to 14.8.  The five-year average forward P/E for the company is 34.6  The stock would be trading at a 57% discount during a recession.

Stock to Watch: United Airlines Holdings (NASDAQ: UAL) The company is currently trading at a 15.3 P/E ratio. During a recession, its P/E could drop by 30% to 10.7.  The five-year average forward P/E for the company is 25.1.  The stock would be trading at a 57% 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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