3 Stocks With P/Es in the Single Digits

Stocks are up big so far this year, but bargains still abound.

For example, shares of the large, American firms that make up the S&P 500 index have returned about 9% this year, following a 26% return last year. Despite the run-up in price, the index still seems reasonably valued. It would need a gain of more than 30% to reclaim its all time high. Today's level puts it at 14 times forecast 2010 earnings, about average by historical standards. Also, 10% of the index's members have price-to-earnings ratios in the single digits.

Three of these relatively undervalued firms are listed below. Each faces challenges, but each also increased its sales in its most recent quarter and generated free cash over the past year. (more)