In May I’ll have to chose a stock for my monthly $1000 investment. I see a market of opportunities. I’m looking at companies that should do pretty well even in a recession, but are priced at very low P/E ratios. The most interesting are HP (HPQ), Humana (HUM), Integrys Energy (TEG), EV Energy Partners (EVEP):
HP is cheap: Trailing P/E (ttm, intraday):16.39 Forward P/E (fye 31-Oct-09):12.26
HP is growing: Qtrly Revenue Growth (yoy):13.50% Qtrly Earnings Growth (yoy):37.90%
HP has more cash then debts and offers a little 0.7% dividend yield which is always welcome.
Humana is dirt cheap: P/E = 8.54. Unfortuantely at Humana they made a calculation mistake on their Medicare prescription – drugs plan. That will hurt their earnings for next year. Forward P/E= 13
Humana has been growing lately: Qtrly Revenue Growth (yoy):12.10% Qtrly Earnings Growth (yoy):56.90%
Humana is loaded with cash: $2.7B on a market Cap of $7.1B are made of cash. So 40% of its stock-price is made by plain cash. That makes Humana even cheaper.
Integrys (TEG) is an Energy and Natural gas utility based in Chicago.
TEG is cheap: Trailing P/E (ttm, intraday):13.72, Forward P/E= 13.5
TEG offers juicy 5% dividends and its business should be recession proof.
EV Energy Partners (EVEP) is also a nice oil and Gas company, offering juicy 8.3% dividends. It seems cheap: Trailing P/E (ttm, intraday):38.72 Forward P/E (fye 31-Dec-09) :6.81. Unfortunately EVEP has pretty large debts. About twice their yearly revenue.
BUY, SELL, KEEP 
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