Let’s say you’ve noticed that AI-related stocks like Arista Networks, Nvidia, Service Now, C3.AI and others have been selling off lately, sometimes in dramatic fashion. You’ve considered the amount of intense hype surrounding artificial intelligence claims and you’ve decided to at least diversify out of the sector.
For something completely different, some investors have been picking up value stocks rather than fantasizing about the possibilities of Silicon Valley’s dream world. Names with low price-earnings ratios don’t always make the front page but a few possess no (or almost no) debt, a quality factor of the old school. And some pay dividends, too.
These four seem to possess value stock qualities and may be candidates for further research.
4 Low P/E Stocks Paying Dividends
Cal Maine Foods (NYSE: CALM)
The stock peaked at near $115 in January 2025 and now goes for $89, a drop of 22% in about two months. Note that the 50-week moving average crossed above the 200-week moving average in June 2022 and has remained above it since then. Both moving averages continue to trend upward although the 50-week looks to be slowing.
The price-earnings ratio is 7.03 which compares favorably (in terms of valuation) to the p/e of the S&P 500 now at 37.53. Cal-Maine, with a market cap of $4.43 billion, is a member of the Russell 2000 ETF. The Mississippi-based food products company has no debt, long-term or otherwise. The short float is 11.50%, which is on the high side: a factor that could lead to a short-covering rally of some strength.
Cathay General Bancorp (NASD: CATY)
The stock peaked in late November 2024 and has backed off that high but remains well above the 50-day and 200-day moving averages. You can see on this chart how the 50-day has stayed above the 200-day for the entire period shown. There are no guarantees that this will continue, of course, but it’s a solid pattern.
The price-earnings ratio is 11.97 and the stock trades at just 1.19 times its book value. The debt-to-equity ratio is .o8. With corporate headquarters in Los Angeles, this regional financial services firm has a market cap of $3.37 billion. Cathay General pays a 2.89% dividend. This year’s earnings are up by 7.09% and up over the past five years by 2.60%.
Harmony Mining (NYSE: HMY)
After peaking at $12.50 in early February 2025, the stock reversed direction and now goes for $10.16. The price just filled that January gap up and now seems to be testing the up-trending 50-week moving average. Note how the 50-week crossed above the 200-week in October 2023 and has remained above it.
This South African gold miner has a price-earnings ratio of 13.97. The debt-to-equity ratio is .05. Market cap is $6.46 billion. Harmony Mining pays a 1.975 dividend. Earnings this year are up 38%. Analysts expect an increase next year of 18.95%. Although gold is the metal most mined by the company, it’s also active in silver and uranium findings.
VIP Shops ADR (NYSE: VIPS)
The price peak of near $19.50 took place in February 2024. It bottomed near $11.50 in August 2024 and has rallied to the present $15.56. Both the 50-week and the 200-week moving averages trend downward even as the price has recently risen to a level above them.
The internet retail operation, based in Guangzhou, Guangdong, China, has a market cap of $6.78 billion. The price-earnings ratio is 7.83 and the stock trades at 1.46 times book. The debt-to-equity ratio is .08. This year’s earnings are up 4.60% and up over the past five years by 18.03%. Vipshop Holdings pays a dividend of 3.04%. Barclays “initiated” coverage of the stock in November 2024 with an “overweight” rating and a price target of $19.
More analysis and commentary at johnnavin.substack.com.
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