The most underpriced stocks right now

When you’re looking at a bunch of companies on the stock market and trying to figure out if you should actually buy shares in one (besides through an index fund or some other kind of intermediary vehicle), timing is very tricky. One way you can tell whether that stock you have your eye on is a bargain is to look at its price-to-earnings ratio, or the multiple of its stock price over its earnings-per-share. There are different ways to do this. Backward-facing P/E can give you a feeling of how the market thinks it is doing compared to its recent financial performance. Forward-facing P/E can gauge sentiment on how investors think its near-term future will be.

Here are the stocks from the household-name Dow Jones Industrial Average that have the highest forward-facing P/E ratios looking one fiscal year out, per consensus analyst estimates on FactSet. And check out the most overpriced stocks here.

5. Travelers Companies

PE FY1: 12.4

Travelers shares have done really well the last few months, but investors don’t seem too thrilled with the company’s ability to keep that momentum going.

4. Chevron

PE FY1: 12.2

Chevron may have bought Hess, but ExxonMobil is trying to secure the rights to one of Hess’s most valuable assets: A giant oilfield off the coast of Guyana. In the meantime, Wall Street has taken its foot off the gas pedal when it comes to Chevron stock.

3. Goldman Sachs

PE FY1: 12.2

Goldman Sachs is in the middle of a big succession fight. Its fellow Wall Streeters seem to be waiting things out.

2. 3M

PE FY1: 11.4

3M is getting ready to spin off its healthcare business Solventum. Some investors would rather wait until that’s done before figuring out whether they like 3M by itself.

1. Verizon

PE FY1: 8.8

Verizon is hoping to do a lot of growth off the back of its expanding 5G network. But the market doesn’t seem to think that growth is coming fast enough.