TheStreet Ratings 10 Cheapest Large-Cap Stocks

BOSTON (TheStreet) -- Investors wary of a soft patch in the economy have piled into government debt, whose yields are slim. The following 10 stocks, the cheapest on the S&P 500, sell for less than seven times earnings, reflecting a deep discount. They're ordered by forward earnings multiple, from cheap to cheapest. 10. Jabil Circuit JBL sells electronic-manufacturing services, helping firms in the car, aerospace, computing and telecommunications industries. Jabil swung to a fiscal third-quarter profit of $52 million, or 24 cents a share, from a loss of $29 million, or 14 cents, a year earlier. Revenue grew 32%. Jabil's stock trades at a forward earnings multiple of 6.8 and a cash flow multiple of 9.2, 66% and 37% discounts to peer averages. Of analysts covering the stock, 13, or 81%, rate it "buy" and three rate it "hold." A median target of $20.42 implies 58% of upside. 9. Ford F is the second-biggest U.S. carmaker. Second-quarter net income increased 15% to $2.6 billion, but earnings per share dropped 12% to 61 cents, hurt by a higher share count. Revenue increased 29%. Ford's stock sells for a trailing earnings multiple of 7.9 and a forward earnings multiple of 6.7, 74% and 84% discounts to automobile industry averages. Its PEG ratio, a measure of value relative to predicted long-run growth, of 0.1 signals a 90% discount to fair value. Of analysts covering Ford, nine, or 56%, rank its stock "buy." 8. Lincoln National LNC offers insurance and investment-management services. Lincoln swung to a second-quarter profit of $255 million, or 32 cents a share, from a loss of $161 million, or 4 cents, a year earlier. Revenue expanded 38%. Lincoln National's stock trades at a forward earnings multiple of 6.7 and a book value multiple of 0.6, 42% and 87% discounts to insurance peer averages. Roughly 50% of firms covering the stock rate it "buy." A median target of $41 suggests a return of 38%. UBS UBS is bullish, expecting the stock to rise 67% to $41. 7. Cliffs Natural Resources CLF sells iron-ore pellets to steel companies. Its second-quarter profit more than quintupled to $261 million, or $1.92 a share, as revenue tripled to $1.2 billion. The company's shares sell for a forward earnings multiple of 6.6 and a cash flow multiple of 14, 61% and 34% discounts to materials industry averages. Of analysts covering Cliffs, eight, or 67%, advocate purchasing its stock and the remainder advise holding. A median target of $85 implies 41% of upside. Deutsche Bank DB expects the shares to gain 58% to $95. To read the rest, head over to TheStreet.com